Coca-Cola Tops Sales Estimates and Beats Wall Street Expectations
Coca-Cola reported topping organic sales on Tuesday and beating Wall Street estimates, with a majority of consumers going for its latest range of sugar-free sodas and sparkling water.
Volumes are a key criteria to analyze market trend, which grew by 2 percent in the third quarter, ending September 28. The figures displayed a strong performance of Coca-Cola’s trademark brand. Analysts had evaluated the sales to only go as high as $8.17 billion, as per Refinitiv estimates. However, Coca-Cola attained a double-digit growth in its sales, thrashing all market expectations.
A major increase in the organic sale of Coca-Cola’s popular diet soda, Coca-Cola Zero Sugar, helped the brand raise its third quarterly earnings beyond analyst expectations. The company had increased its product prices to balance and cover higher import and transportation costs, as per CEO James Quincey. Nevertheless, the accelerated sales astonished market analysts around the world with an increase that went beyond expectations.
Diverse Future Plans
With the skyrocketing sales, the non-alcoholic beverage manufacturer is also planning to create a Global Ventures group, as per sources. The venture is expected to help the company scale new brands and recognize opportunities beyond manufacturing fizzy drinks. With this reported plan, the Coca-Cola company is planning to reap “maximum value out of acquisitions” by reducing their dependence on beverage production.
According to James Quincey’s call to investors, the CEO acknowledged the fact that the company wasn’t growing “as fast as we would like” it. By this, the CEO referred to his company’s bloom in terms of scaling new brands across the globe.
Quincey also expanded on the newly-formed team post addition of Jennifer Mann, as president of Global Ventures of the company. He stated, “Jennifer’s number one job is to get maximum value out of the things we’ve already bought or invested in. There’s a lot of opportunity to leverage what’s already underway.”
However, Quincey also clarified that the company is not considering ‘adventurous transformations’. He stated that the idea of rolling out cannabis infused drinks, for now, wasn’t a plan Coca-Cola is banking upon. Therefore, this is as far as the company is foreseeing right now.
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