Coke Zero Sugar Sales Increase Revenue for Coca-Cola
Last updated on October 21st, 2019
Wall Street revealed the estimates for the quarterly revenue of Coca Cola Company in a report on October 18. The report showed increased profits of the beverage firm because of the surge in demand of mini soda cans, specifically Coke Zero Sugar, prompting the beverage maker to ramp up its production.
The increasing health consciousness in people has changed their tastes in drinks and the beverage making firms have to change their formulas accordingly. Companies like Coca Cola and PepsiCo have introduced low-sugar drinks to cater to the changing consumer markets. They are also diversifying their products to include coffee, tea and bottled water to boost sales.
New products such as Coca-Cola Plus Coffee are being welcomed by Coca Cola. This coffee based beverage is a blend of the trademark soda of Coca Cola with coffee. The drink is currently being sold in more than 20 markets along with other high-margin packs that are designed according to health conscious customers.
Driven by the double-digit percentage growth in Coke Zero Sugar and Sprite in North America, the production of soft drinks rose by two percent in the current quarter. Led by double-digit growth in 7.5-ounce mini-cans, the Atlanta based firm saw strong growth in smaller package drinks too.
Speaking of the advancing profits of the firm, Bonnie Herzog, an analyst at Wells Fargo said, “We were very impressed with Coca-Cola’s better-than-expected topline.”
Seeing the rising demand, Coca Cola now aims for increasing the full-year organic growth by at least five percent.
The increasing demand for low-calorie drinks has benefited PepsiCo as well. Staying true to the expectations of analysts surveyed by Refinitiv, the beverage giant has gained 56 cents per share.
While Coke Zero Sugar continues to have a strong market share, Minute Maid and juice brand Simply have also witnessed performance improvements in the home market of Coca Cola.
James Quincey, CEO of Coca-Cola claims that low consumer sentiment in the UK because of Brexit has posed negative consequences for all British business. He added, “if the Brexit issue comes to an end, I do think that sentiment will improve, maybe not overnight, but over time and hopefully going into 2020.”
According to the beverage firm, the sales of tea and coffee are growing at a faster rate round the world as compared to soda in the third quarter.
In another news, a recently released market study on the topic “Global Aloe Drink Market” provided complete assessment of key companies like Coca Cola(US), OKF(KR), Pukka Herbs etc. giving detailed accounts of the future trends, opinions and market share of these firms. All the key players including Coca Cola, are focused on innovation in production technologies to improve efficiency and shelf life.
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