Coffee-infused soda drives Coca-Cola revenue beat

Coca-Cola reported better-than-expected quarterly revenue on Friday, boosted by strong demand for its zero-sugar sodas and Coca-Cola Plus Coffee, a blend of its traditional soda and coffee.

Faltering demand for sugary drinks has forced the world’s two largest beverage makers, Coca-Cola and PepsiCo, to roll out low-sugar drinks, while diversifying their offerings into coffee, tea and bottled waters to boost sales.

Coca-Cola has been rolling out new offerings such as Coca-Cola Plus Coffee as well as drinks in small packs that command higher prices and are more appealing to consumers. It also expanded its coffee business with the multibillion-dollar purchase of Britain-based Costa Coffee last year.

Volume in sparkling soft drinks rose 2 percent in the quarter, driven by double-digit percentage growth in Coca-Cola Zero Sugar as well as Coke and Sprite in North America.

Organic revenue climbed 5 percent during the quarter, above the average analyst estimate of 4.3 percent, according to five analysts polled by Refinitiv.

Coca-Cola also said it now expects full-year organic revenue growth excluding currency fluctuations, acquisitions and divestitures to be at least 5 percent, from its previous forecast of 5 percent growth.

The company’s shares climbed 2 percent before the bell, adding to the 14 percent they have gained this year.

via: https://nypost.com/2019/10/18/coffee-infused-soda-drives-coca-cola-revenue-beat/

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