In the latest quarterly report, Coca-Cola revealed a 3% decrease in revenue in North America, attributed to declining demand for bottled water, sports drinks, coffee, and tea.
Despite this setback, the beverage giant experienced a surge in prices, with its price/mix metric, encompassing factors such as pricing strategies and product mix, registering an 8% increase in North America.
While Coca-Cola’s global quarterly revenue saw an uptick, the company’s outlook for 2024 predicts higher organic sales growth compared to its rival, PepsiCo.
Shares decline
Despite this positive forecast, Coca-Cola’s shares faced a modest decline of approximately 1% during afternoon trading.
The contrasting performance between Coca-Cola and PepsiCo reflects shifting consumer behaviors, with PepsiCo recently reporting an unexpected revenue drop in its North American snacks and soda businesses.
The decline was attributed to changing consumer habits, with fewer people snacking at home.
Notably, Coca-Cola had previously indicated a shift in consumer spending patterns, with lower-income consumers reducing purchases of drinks for home consumption. Conversely, sales were on the rise in sectors such as restaurants, amusement parks, and airports.
As both Coca-Cola and PepsiCo navigate evolving consumer preferences and market dynamics, the beverage industry remains in flux, requiring companies to adapt and innovate to maintain competitiveness in an ever-changing landscape.
