Consumers continued to buy Coke products despite higher prices

Coca-Cola has defied the trend for declining volumes at its global CPG peers as consumers kept buying its flagship drinks despite further price increases.

Net revenues at the drinks giant increased 8% to $12bn in the third quarter, with organic growth of 11%, as the group raised its prices 9%.

However, Coca-Cola also reported a 2% jump in global unit case volumes as trademark Coke grew 2% and Coke Zero by 3%, while its juices, dairyplant-based drinks also grew 2% and its water, sports, coffeetea divison increased volumes 1%.

It led the US-headquartered group to lift its full-year sales and profits guidance, with sales now forecast to be 10% to 11% higher for 2023.

“We delivered an overall solid quarter and are raising our full-year topline and bottom-line guidance in light of our year-to-date performance,” said CEO James Quincey.

“Our leading portfolio of brands, coupled with an aligned and motivated system, positions us to win in the marketplace today while also laying the groundwork for the long term.”

Coca-Cola was helped in the quarter by a campaign to promote its drinks alongside the Fifa Women’s World Cup, contributing to value and volume gains in the Asia Pacific region.

“Coca-Cola has proven it’s got the right formula in and out of the can as another round of price hikes made no dent on demand and gave the company the green light to push their customers further in its efforts to maintain margins,” said Danni Hewson, head of financial analysis at AJ Bell.

“Those little luxuries make life worth living, especially if you’re having to do without other, more expensive treats.” 

Shares in the group moved 2.8% higher to $55.56 as markets reacted to the upgrade.