Coca-Cola Co (K) reported lower-than-expected quarterly revenue as sales in North America, its biggest market, declined for the second straight quarter.
Shares of the maker of Sprite, Minute Maid and Powerade fell as much as 4.2 percent to $40.61 in early trading. The stock has gained 2.6 percent this year, lagging a 2.87 percent increase in the broader Dow Jones Industrial Index <.DJI>.
Unit case volume sales were flat in North America in the quarter ended June 27 despite increased marketing around the FIFA World Cup and the launch of its 'Share a Coke' campaign.
JP Morgan analysts had expected volumes to be up 1-2 percent in North America, which accounted for 45 percent of total revenue in the second quarter.
Coke, like rival PepsiCo Inc <PEP.N>, has been struggling with declining soda sales in developed markets such as the United States as consumers become more health conscious.
Still, sparkling beverages volume, which includes carbonated energy drinks and waters, was flat in the quarter in North America, with brand Coca-Cola volumes up 1 percent.
Overall, global unit case volumes grew 3 percent, primarily driven by higher sales in Asia Pacific and Eurasia & Africa.
The company's net income attributable to shareholders fell to $2.60 billion, or 58 cents per share, in the second quarter, from $2.68 billion, or 59 cents per share, a year earlier.
Excluding items, Coke earned 64 cents per share.
Revenue fell 1 percent to $12.57 billion.
Analysts on average had expected earnings of 63 cents per share, on revenue of $12.83 billion, according to Thomson Reuters I/B/E/S.
Coke also said its adjusted earnings would be hurt by 2 cents in the second half of the year due to the restructuring of its juice operations in Russia and the separation of its Brazilian bottling operations last year.