mes at Coca-Cola grew by less than expected in the fourth quarter, and even fell in North America, according to financial results released by the company.The world's largest beverage company said that profit fell 8.4% in Q4 compared with the same period the previous year.
The news sparked shares on Tuesday to drop 3.75% to $37.47. In North America, 2013 “was a challenging year and I’m not satisfied with our overall performance,” said Muhtar Kent, company CEO.
Coke, the maker of Sprite, Dasani and Vitaminwater water, said that sales volume declined 1% in North America. That reflected a 3% decline in soda, which offset improved performance by noncarbonated drinks such as Powerade. Last week, PepsiCo also said its soda volume fell in the "mid-single digits."
Coca-Cola also saw slower growth in emerging markets such as India and China. Overall, global sales volume rose just 1% in the quarter as a result. The Atlanta-based company said it would intensify its cost-cutting to produce another $1 billion in savings by 2016, much of which would be reinvested into marketing.
"We know our business responds to marketing," Kent said in a call with reporters. While some jobs may be lost as a result of the cost cuts, he noted that other jobs might be created.
"We see many reasons to believe we can accelerate our growth. We are committed to accelerating marketing investments in our brands, further advancing our innovation strategies and maximizing productivity and reinvestment for growth."
