Coca-Cola had a solid Q2 thanks to efforts it says has reinvigorated its brands through “innovative products, refreshed designs and consumer-centric marketing.”
The company’s quarterly net revenues grew 6% to nearly $12 billion USD, with organic revenues up 11%. The company is reporting net income of $2.55 billion USD in the quarter, up from $1.91 billion, and its raised its full-year outlook.
In this morning’s earnings call, the company says it is “upping the bar” on marketing to drive volume growth.
James Quincey, chairman and CEO of The Coca-Cola Company, said the company gained share in both at-home and out-of-home channels, while warning there is “some willingness to switch to private label in some categories” amidst a global hyper-inflation environment.
Because of that, it is “more important than ever to be consumer-centric,” Quincey noted, balancing being both affordable and premium. He said the company continues to deliver on a strategy of world class marketing, innovation and execution, building its edge by accelerating speed to market of innovations.
In the company’s release, it noted that Coca-Cola garnered multiple Cannes awards as a result of the company’s recent marketing and innovation transformation.
Quincey said Coca-Cola is also successfully linking itself to consumption occasions, as in its “Recipe for Magic,” campaign activated in over 50 markets, using local chefs and 750 global influencers. Its total beverage portfolio strength means a breadth of consumer choices for every occasion, Quincey said.
Coca-Cola Zero Sugar grew sales by 5%, “reflecting strong growth” in regions such as North America. The company gained value share in total non-alcoholic ready-to-drink beverages in North America, driven by sparkling soft drinks and juice, value-added dairy and plant-based beverages.
Sprite, Quincey said, is getting more granular, locally relevant and personalized with its marketing. It is offering exclusives and prominent artist collaborations to connect with Gen Z demos.
In May, the company launched its first ever Minute Maid global rebrand with a brighter, refreshed visual identity. The “Filled with Life” campaign began rolling out across markets through digitally led experiences “to intercept life’s routine moments with a reminder to engage and live life fully.”
The revitalization, Coca-Cola claims, strengthened the brand’s relevance and contributed to Minute Maid generating high single-digit volume growth and overall volume and value share gains for the juice, value-added dairy and plant-based beverages category for the quarter.
Quincey said Coca-Cola is building excitement for its Fuze tea portfolio, while Vitamin Water Zero was relaunched with new sweetener, leading to general market share gains in North America.
