Coca-Cola said demand for its zero-sugar drinks and Fairlife in the U.S. continue to see high demand, the company reported in its recent Q3 earnings call. The company also maintained its annual sales and profit targets despite CEO James Quincey flagging a challenging overall environment, reported Reuters.
Coca-Cola said its organic revenue rose 6% to $12.41 billion in the July-September period. The company’s net income jumped 30% to $3.69 billion. Case volumes were flat in North America and Latin America and down 1% in Asia. Coca-Cola said prices grew 6% in the quarter, partly due to the mix of beverages sold.
Coca-Cola Zero Sugar saw unit case volumes up 14% globally, while Diet Coke and Coca-Cola Light sales grew 2%. Case volumes for water, sports drinks, coffee and tea rose 3%.
"Affordability and value are really important and we understand that and know that it's important that we find the right packages at the right price point to keep that consumer in our base," CFO John Murphy told Reuters in an interview.
The company said Tuesday it continues to see a divergence among consumers in North America and Europe. Higher-income buyers are opting for its more expensive brands like Smartwater, Topo Chico and Fairlife while middle- and lower-income consumers are under more pressure, wrote the Associated Press.
Henrique Braun, Coke’s chief operating officer, said the company has focused on affordability by shrinking package sizes and leaning into sales of mini cans. Earlier this month, Coke announced it will sell individual, 7.5-ounce mini cans for the first time at North American convenience stores starting January 1. The mini cans have a suggested retail price of $1.29.