Cola Co., Atlanta, reported its second-quarter and year-to-date 2014 operating results. In its quarterly financial statement, the company reported worldwide volume growth of 3 percent for the second quarter and 2 percent year to date, with gained value share in non-alcohol ready-to-drink (NARTD) beverages.Worldwide sparkling beverage volume was up 2 percent for the quarter and 1 percent year to date. The company gained volume and value share in global core sparkling beverages in the quarter, as it leveraged its sponsorship of the FIFA World Cup globally and activated its Share a Coke marketing campaign in many markets around the world.
However, reported net revenues declined 1 percent in the second quarter and 3 percent year to date, and reported operating income decreased 2 percent both in the second quarter and year to date. The company attributes these declines to the impact of structural changes and currency exchange rates.
“At the beginning of this year, we shared our strategic plan to restore the momentum of our global business,” said Muhtar Kent, chairman and chief executive officer of The Coca-Cola Co., in a statement. “As we now reach the midpoint of the year, we have delivered sound financial performance year to date and demonstrated sequential improvement in our global volume growth. While I am pleased with our progress to date, we remain focused on the work required to return our business to the level of sustainable growth we and our shareowners expect. For the remainder of the year, we will continue to focus intently on our five strategic priorities in order to deliver quality results and further advance our progress toward achieving our 2020 Vision.”
In the quarter, worldwide brand Coca-Cola volume grew 1 percent, Sprite rose 6 percent, and Fanta increased 2 percent. The Coca-Cola Co. also continues to see positive results in key markets where it has incrementally invested to drive growth, it says.
In China, steady execution of its new strategy coupled with strong activation of the Share a Coke campaign in June resulted in 10 percent growth in sparkling volume for the quarter as it focused on driving increased sales of its entry-size single-serve packages, the company reports.
In North America, strong activation around the FIFA World Cup as well as increased media investments drove a sequential improvement in Coca-Cola brand volume. Coca-Cola brand volume grew 1 percent in the quarter, while the company’s flavored sparkling portfolio also performed well, with Fanta up 4 percent and Sprite up 2 percent. Solid growth in these core sparkling brands was tempered by softness in Diet Coke. Its still beverage business grew value share and maintained volume share in the quarter on 1 percent volume growth, making this the 17th consecutive quarter that The Coca-Cola Co.’s still beverage portfolio has either maintained or gained both volume and value share. The company’s still portfolio saw balanced volume growth in the quarter across all major still categories, except juices and juice drinks, which saw lower volume due to significant price increases taken to cover higher commodity costs, it says.
Worldwide, still beverage volume grew 5 percent in the quarter and 6 percent year to date, with solid volume growth in the quarter across multiple beverage categories, including teas (up 4 percent), bottled water (up 7 percent), and sports drinks (up 6 percent), partially offset by a 1 percent decline in the company’s juice and juice drinks portfolio stemming from price increases taken in North America to cover higher input costs. The company maintained global volume and value share in total still beverages in the quarter and gained volume and value share in ready-to-drink teas and bottled water. Although volume share in juices and juice drinks was down slightly, the company gained value share in the category.
