New Coke, chilled coffee, energy drinks boost sales for Coca-Cola
The Coca-Cola Co. is taking a more positive outlook on the year, thanks in part to some new products and one vintage drink making a comeback.
The company brought back 1985’s New Coke as part of a marketing partnership with Netflix for the new season of “Stranger Things,” increased the availability of Coca-Cola Plus Coffee, launched a chilled ready-to-drink Costa Coffee product in Great Britain and unveiled a new energy drink in parts of Europe during the past quarter, it said in its second-quarter earnings report Tuesday.
Atlanta-based Coca-Cola is the world’s largest beverage company. It has more than 500 brands.
Sparkling soft drinks drove strong performance, the company said. Despite declining soda consumption in the U.S., Coca-Cola led by 4 percent volume and transaction growth. Coca-Cola Zero Sugar saw its seventh consecutive quarter of double-digit volume growth.
Coca-Cola’s net revenues grew by 6 percent to $10 billion. Non-GAAP organic revenues grew by 6 percent. The company posted earnings of $0.61 per share, beating analysts’ expectations.
The company’s 2019 outlook improved on the news. It’s now expecting 5 percent growth in non-GAAP organic revenues.
“Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry,” said James Quincey, Coca-Cola’s chairman and CEO. “Our progress is positioning the company to create more value for all of our stakeholders, including shareowners.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KO | THE COCA-COLA CO. | 60.18 | +1.28 | +2.17% |
The company has more plans to expand its offerings. Coca-Cola Energy is available in 14 countries, and the company plans to offer it in 20 markets by the end of the year, including Mexico and Brazil.
Coca-Cola is also expanding its Innocent Drinks smoothies and juices from Europe to Asia, starting with a targeted rollout in Tokyo.
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In Japan, Coca-Cola has also been in talks to sell an alcoholic canned drink in supermarkets and convenience stores starting this fall, The Wall Street Journal reported. The company’s Lemon-Do is its version of beverages called chuhai, which the report said are often made with flavored carbonated water and grain-based alcohol.