Coca-Cola observes a growing gap between at-home and out-of-home consumer behaviour. In supermarkets, consumers have the choice to go for cheaper private labels (and they increasingly often do so).
No further price hikes
Coca-Cola exceeded expectations in the third quarter, despite a new series of price increases. The soft drinks giant posted sales of 11.91 billion dollars (11.2 billion euros), compared with analysts’ expectations of 11.44 billion dollars – and an organic sales rise of 11 %. Net profit also rose, to 3.09 billion dollars (2.9 billion euros).
Most of this growth came as price increased by 9 % compared with the previous year, but volume grew slightly (by 2 %). In July, the group nevertheless announced that it would not be increasing its prices any further in the United States and Europe this year.
More than expected
CEO James Quincey notes that out-of-home sales are growing faster than in-home consumption. In supermarkets, it is easier for consumers to opt for private labels than for out-of-home consumption. This difference is particularly marked in the United States. In Europe, consumers are cutting back more in general, while Coca-Cola has also suffered from the unstable summer weather in this region.
For the full year, Coca-Cola now expects profit growth of 7 to 8 %, up from the 5 to 6 % previously forecast. The group is also raising its revenue outlook to 10 to 11 %. The rest of its outlook for 2024 will be announced after the fourth quarter.
