Coca-Cola taps sales boost amid soaring inflation

Soft-drink maker said it benefited from bundling different sizes and mixes of its products for inflation-wary consumers

Coca-Cola said it now sees organic revenue growth of 14% to 15% for the full year.

Coca-Cola said its third-quarter sales and profit surpassed expectations and the beverage giant raised its guidance for the year, as the company got a boost from value-conscious products amid soaring inflation.

The Atlanta-based soft-drink maker, whose beverages include Fanta, Minute Maid juices and Powerade sports drinks, said it benefited from bundling different sizes and mixes of its products for inflation-wary consumers.

The company said it now sees organic revenue growth of 14% to 15% for the full year. In July, Coca-Cola increased its full-year outlook from 12% to 13%. 

Coca-Cola’s adjusted operating revenue was $11.1bn in the quarter to the end of September beat analysts' predictions. 

“When you segment the population, there are certain groups that are going to be under more pressure than others,” chief financial officer John Murphy said in an interview. 

“It’s an opportunity to offer them solutions at a price point that will be effective to them.” 

Key competitor Pepsi also increased its organic revenue growth projection, to 12% from 10%, earlier this month. 

Coca-Cola said it was seeing strong results from its ready-to-drink alcohol beverages, which include Fresca Mixed and Schweppes cocktail mixers and tonics. 

The company said consumers were continuing to return to public venues and that freight costs in some parts of the world, such as China, have declined. 

“I think there has been a reduction in both the container costs and a reduction in demand,” Mr Murphy said. 

But within the US, fuel and staff shortages continue to keep freight transportation costs high. “We will continue to see relatively high costs for trucking,” he said. 

• Bloomberg