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Coca-Cola Reports Continued Q2 Momentum

ATLANTA -- Coca-Cola Co. reported strong operating results in the second quarter of 2019, which the beverage giant attributed to consumer-centric innovation, solid core brand performance and improved execution in the marketplace. Net revenues grew 6% to $10 billion. $9.42 billion a years earlier. Net income was $2.60 million versus $ 2.32 million year over year. "Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry," said Coca-Cola Co....

July 23, 2019 by Emily Jed

ATLANTA -- Coca-Cola Co. reported strong operating results in the second quarter of 2019, which the beverage giant attributed to consumer-centric innovation, solid core brand performance and improved execution in the marketplace.

Net revenues grew 6% to $10 billion. $9.42 billion a years earlier. Net income was $2.60 million versus $ 2.32 million year over year.

"Our strategy to transform as a total beverage company has allowed us to continue to win in a growing and vibrant industry," said Coca-Cola Co. chairman and chief executive James Quincey.

Q2 Highlights:

Market share: The company continued to gain value share in total nonalcoholic ready-to-drink beverages.

Driving sparkling: Strong performance for the quarter was driven by sparkling soft drinks, led by 4% volume and transaction growth in trademark Coca-Cola. Coca-Cola Zero Sugar continues to perform well, with a seventh consecutive quarter of double-digit volume growth globally. Quarterly performance was further driven by innovation, such as Coca-Cola Plus Coffee, and a modernized marketing strategy for today's consumers. The company reached a first-of-its-kind partnership with Netflix to temporarily bring back 1985's New Coke for the July 4 debut of season 3 of the hit series "Stranger Things."

Growing coffee: During the quarter, the company launched the first-ever Costa Coffee ready-to-drink chilled product in Great Britain, marking the first major introduction since Coca-Cola acquired Costa earlier this year. The company plans to roll out the product in additional markets in the second half of the year. The brand delivers an authentic coffee taste experience with 30% less sugar than most RTD coffees in Costa's core market of Great Britain. The Costa Coffee brand is also expanding through a new agreement with Coca-Cola HBC AG. The agreement will address a broad range of consumer and customer needs across multiple channels and occasions, including roast and ground coffee, RTD offerings and vending. The bottler plans to introduce Costa Coffee in at least 10 markets in 2020.

Expanding energy: The first energy drink under the Coca-Cola brand launched in select European countries during the quarter. Coca-Cola Energy features caffeine from naturally derived sources, guarana extracts, B vitamins and no taurine, all with the Coca-Cola taste consumers know. The product has shown early signs of success. Coca-Cola Energy is now available in 14 countries, including recent launches in Japan, Australia and South Africa. The company expects to offer Coca-Cola Energy in 20 markets by the end of 2019, including Mexico and Brazil.

Lifting, shifting and scaling: Since the company's initial investment in the Innocent business in 2009, the innocent team has taken the business from the No. 1 smoothie brand in the U.K. to the No. 1 chilled juice brand across Europe. The brand is now expanding into Asia for the first time through a targeted rollout, starting in Tokyo. Innocent targets consumers who want more functional and nutritional benefits in their daily diet, in addition to those who enjoy natural and healthy juices and smoothies.

Making progress in packaging: The company continues to make progress on its World Without Waste goals for recycling, recyclable packaging and the use of recycled materials, including these recent milestones:

Bottlers worldwide continue to introduce more brands in 100% recycled PET (rPET) packaging. Recent launches include the green tea brand Hajime Ichinichi Ippon in Japan; the Romerquelle and Valser water brands in Austria and Switzerland, respectively; Viva water in the Philippines; and San Luis water in Peru. In Western Europe, 100% rPET bottles will be launched for smartwater, Chaudfontaine and Honest by the end of 2019.

Coca-Cola Amatil and Coca-Cola Australia announced that 70% of all PET bottles in the market will be made from 100% rPET by the end of 2019. Coca-Cola European Partners and Coca-Cola Great Britain announced a switch from green to clear bottles for Sprite in their markets as a way to improve recycling. Other markets are making this change as well.

Coca-Cola Beverages Philippines, the bottling arm of Coca-Cola in the Philippines, announced that it will lead the investment in a $19 million state-of-the-art, food-grade recycling facility that will collect, sort, clean and wash post-consumer recyclable plastic bottles and turn them into new bottles using advanced technology. It is Coca-Cola's first major investment in a recycling facility in Southeast Asia.

Coca-Cola Vietnam led the launch of an industry-backed packaging recovery organization alongside other companies. The organization will initially focus on increasing recovery and recycling rates for three materials: PET, aluminum and Tetra Pak.

Click here to view the full Q2 earnings release.