Coca-Cola only sold 1% more drinks last quarter, but it raised prices 13%. Its CEO said it has ‘the right strategies’ for sustained success

Fortune05-01

Coca-Cola sales are flat, but its profits are fizzy. The beverage behemoth posted $11.30 billion in first-quarter revenue on Tuesday, exceeding Wall Street’s $10.96 billion expectations, even as it ...

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The beverage behemoth posted $11.30 billion in first-quarter revenue on Tuesday, exceeding Wall Street’s $10.96 billion expectations, even as it ...</p>\n\n<a href=\"https://finance.yahoo.com/news/coca-cola-only-sold-1-223526658.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Coca-Cola only sold 1% more drinks last quarter, but it raised prices 13%. Its CEO said it has ‘the right strategies’ for sustained success</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCoca-Cola only sold 1% more drinks last quarter, but it raised prices 13%. Its CEO said it has ‘the right strategies’ for sustained success\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-01 06:35 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/coca-cola-only-sold-1-223526658.html><strong>Fortune</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Coca-Cola sales are flat, but its profits are fizzy. The beverage behemoth posted $11.30 billion in first-quarter revenue on Tuesday, exceeding Wall Street’s $10.96 billion expectations, even as it ...</p>\n\n<a href=\"https://finance.yahoo.com/news/coca-cola-only-sold-1-223526658.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1732799900.SGD","symbol_name":"JPMorgan Investment Funds - Global Income A (irc) SGD-H","start_time":0,"source_url":"https://finance.yahoo.com/news/coca-cola-only-sold-1-223526658.html","article_id":"2432655105","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/JzsKXjHVtKfbESeLHyecLg--~B/aD0xMzY1O3c9MjA0ODthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/fortune_175/82921b78202fea5a65dbedb45dd40b3f"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2432655105","pubTimestamp":1714516526,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Coca-Cola sales are flat, but its profits are fizzy. The beverage behemoth posted $11.30 billion in first-quarter revenue on Tuesday, exceeding Wall Street’s $10.96 billion expectations, even as it grappled with a modest case volume growth of only 1%.The company introduced Happy Tears Zero Sugar and an accompanying “hype kit” available only on TikTok Shop to grow its online audience and signed a five-year deal with Microsoft this month to use cloud-computing software Azure to aid in marketing and streamlining operations and cost management. But innovation isn’t what Coca-Cola has to thank for its resilience. Instead, the company owes its success to a price increase to the tune of 13% across products this quarter alone.Companies appear willing to take criticisms on the chin if it means their price-increase strategies are successful. Coca-Cola’s bid to cash in on increased prices and international sales mirrors rival PepsiCo, which reported similar trends in its April","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1732799900.SGD":"JPMorgan Investment Funds - Global Income A (irc) SGD-H","IE00BLSP4239.USD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis USD Plus","IE00BLSP4452.SGD":"Legg Mason ClearBridge - Tactical Dividend Income A Mdis SGD-H Plus","SG9999003800.SGD":"Nikko AM Global Dividend Equity Acc SGD-H","SG9999014575.USD":"UOB UNITED INCOME FOCUS TRUST FUND (USDHDG) INC","LU0912757837.SGD":"JPMorgan Investment Funds - Global Income A (mth) SGD-H","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","PEP":"百事可乐","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","LU1732800096.USD":"摩根大通环球收益基金A (irc)","GIS":"通用磨坊","LU1670710588.SGD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (SGD) ACC","LU2237443549.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA SGD-H","BK4532":"文艺复兴科技持仓","LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU1670710661.SGD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (SGD) INC","SG9999011175.SGD":"Nikko AM Global Dividend Equity Dis SGD-H","LU0061474960.USD":"天利环球焦点基金AU Acc","IE00BBT3K403.USD":"LEGG MASON CLEARBRIDGE TACTICAL DIVIDEND INCOME \"A(USD) ACC","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","BK4177":"软饮料","BK4585":"ETF&股票定投概念","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4534":"瑞士信贷持仓","LU1670711123.USD":"M&G (LUX) GLOBAL DIVIDEND \"A\" (USD) INC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1989763690.USD":"东方汇理世代食品基金A2 Acc","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","LU2125154935.USD":"ALLSPRING (LUX) WF GLOBAL EQUITY ENHANCED INCOME \"I\" (USD) INC","BK4566":"资本集团","LU1989763427.SGD":"CPR Invest - Food For Generations A2 Acc SGD-H","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","SG9999014559.SGD":"United Income Focus Trust Dis SGD","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","KO":"可口可乐","BK4559":"巴菲特持仓","SG9999014567.USD":"UOB UNITED INCOME FOCUS TRUST FUND (USD) ACC","BK4550":"红杉资本持仓","LU0289960550.SGD":"AB FCP I - GLOBAL EQUITY BLEND PORTFOLIO 'A' (SGD) ACC","LU1244550221.USD":"FRANKLIN GLOBAL MULTI-ASSET  INCOME \"A\" (USDHEDGED) INC (M)","SGXZ23171101.USD":"NIKKO AM SHENTON GLOBAL OPPORTUNITIES (USD) ACC","SG9999015358.SGD":"United Income Focus Trust Dis SGD-H","LU0061475181.USD":"THREADNEEDLE (LUX) AMERICAN \"AU\" (USD) ACC","SG9999015341.SGD":"United Income Focus Trust Acc SGD-H","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","LU0957791311.USD":"THREADNEEDLE (LUX) GLOBAL FOCUS \"ZU\" (USD) ACC","LU0795875169.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD-H","SG9999014542.SGD":"United Income Focus Trust Acc SGD","LU1585245621.USD":"EASTSPRING INV GLOBAL LOW VOLATILITY EQUITY FUND \"A\" (USD) ACC B"},"translate_title":"可口可乐上个季度的饮料销量仅增加了1%，但却提高了13%。该公司首席执行官表示，它拥有持续成功的“正确战略”","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KO":1,"GIS":0.9,"PEP":0.64},"content_text":"Coca-Cola sales are flat, but its profits are fizzy. The beverage behemoth posted $11.30 billion in first-quarter revenue on Tuesday, exceeding Wall Street’s $10.96 billion expectations, even as it grappled with a modest case volume growth of only 1%.\nThe company introduced Happy Tears Zero Sugar and an accompanying “hype kit” available only on TikTok Shop to grow its online audience and signed a five-year deal with Microsoft this month to use cloud-computing software Azure to aid in marketing and streamlining operations and cost management. But innovation isn’t what Coca-Cola has to thank for its resilience. Instead, the company owes its success to a price increase to the tune of 13% across products this quarter alone. \n“We’re encouraged by our start to 2024, delivering another quarter of volume, topline and earnings growth amidst a dynamic backdrop,” said Coca-Cola chairman and CEO James Quincey , in its earnings report. “We believe our global system is primed for sustained success, thanks to the right strategies, clear alignment, a powerful portfolio and strong execution.”\nWhile the company attributes about half of its price increase to inflation—which increased 0.4% in March and 3.5% over the past 12 months, according to the Bureau of Labor Statistics—that’s not the only reason Coke raised its prices. Per its earnings, over half of its price/mix growth were choices it made to compete with the marketplace rivals.\nTo be sure, Quincey insisted pricing will normalize along with inflation levels, particularly as costs for commodities like corn syrup and sugar level off. \n\"Our pricing levels and the input inflation cost levels are normalizing as we see through the year,\" he told Yahoo Finance.\nThe price-hike playbook\nCoke joins the likes of WK Kellogg, General Mills, and Molson Coors— companies which have been rewarded for continuing to increase prices. Cereal maker WK Kellogg saw a 7.5% price/mix increase in its fourth quarter, despite a 10.1% decrease in sales volumes; Molson Coors similarly saw a 4.2% price/mix increase, despite modest volume declines. \nAs reflected in slowing sales, consumers aren’t all happy with the price hikes. TikTokers organized a boycott of Kellogg’s products after CEO Gary Pilnick suggested families eat “cereal for dinner.” Outrage over snack food manufacturers’ pricing tactics has expanded beyond just Kellogg’s.\n“Americans can’t even buy breakfast cereal without facing the consequences of corporate profiteering,” Liz Zelnick of watchdog group Accountable.US said after General Mills’ March earnings report of drooping sales but increased profit. “As General Mills posts massive profits, it’s painfully obvious that the food giant’s price hikes were motivated by their greed.”\nCompanies appear willing to take criticisms on the chin if it means their price-increase strategies are successful. Coca-Cola’s bid to cash in on increased prices and international sales mirrors rival PepsiCo, which reported similar trends in its April 23 earnings report. \nDespite eight consecutive quarters of double-digit price hikes and a first-quarter net pricing increase of 5%, Pepsi saw a 2.7% increase in organic profit last quarter. Volumes of Gatorade and Fritos took a hit, and beverage volumes fell 5%. Like Coke, PepsiCo CFO Jamie Caulfield said he expects pricing to even out as inflation cools.\n\"We've had three years of ... massive consumer inflation and that has to be absorbed and I think the cumulative impact of that put a bit of strain on the consumer,” he said. “But we expect that to abate as time goes on.”\nBut with inflation staying put, Wedbush analyst Gerald Pascarelli predicts that companies will continue to bank on high costs to turn a profit.\n\"This is going to be another year of price-led revenue growth even though pricing has come down,\" he told Reuters.\nThis story was originally featured on Fortune.com","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2432655105"}