coca-cola’s profit climbs as it sells more drinks at higher prices

by:Petolar     2020-07-18
NEW YORK—Coca-
Coca-Cola said that thanks to the combination of re-energized marketing and mini-marketing, people are paying more for their drinks
More pots and glass bottles are often spent.
To help boost weak sales growth, manufacturers of Sprite, Fanta and Powerade have been cutting costs and then putting some of that money into increased marketing. The Atlanta-
The American-based company is known for more than a century of advertising, such as \"I want to buy a Coke for the world \".
The improvement in the quality and quantity of advertising helps it to win higher prices for drinks.
In a conference call with analysts on Wednesday, Coca
Coca-Cola CEO Muta Kent said that without improving the \"injection\" of marketing, the company\'s revenue growth in North America in the second quarter would not be achieved.
The company said overall advertising spending doubled without providing specific details
The percentage of figures rose this quarter. In the U. S.
A recent event was the \"share Coke\" program, which placed popular names and words such as \"friends\" and \"legend\" on the package.
Many customers take pictures of cans and bottles and post them on social media sites like Facebook and Instagram.
With increased focus on marketing by Coca-Cola
Coca-Cola faces broader challenges in the United States. S.
As the choice of drinks grows, people start to stay away from the traditional soda.
This prompted the company to focus on extracting more money from each transaction by increasing the price of traditional packages and launching products such as mini packages.
More expensive jars.
The company said in the quarter that mini-
Cans rose by double digits.
Sandy Douglas, president of Coca-Cola
Coca-Cola North America notes that mothers especially like smaller sizes and people are willing to pay \"more money\" for them \".
In the past, Douglas pointed out that the packaging sold by the company was too large, resulting in waste.
He said the smaller sizes now account for roughly the proportion of sales in North America among \"low teens.
Other food and beverage companies have also raised their incomes through similar strategies.
For example, earlier this month, Indra Nooyi, CEO of PepsiCo, said the company was using \"creative revenue management strategies, plus innovation\" to improve financial performance.
This may mean new products with higher prices, such as dew and Dew in glass bottles.
In April, Starbucks said it increased sales in the United States. S.
With the help of more expensive drinks such as \"flat white\" espresso coffee and Teavana \"shake\" iced tea.
\"What we saw was a premiere, a trade --
Scott Mo, chief financial officer of Starbucks, said at the time.
First quarter, Coca
Coca-Cola\'s total carbonated drinks in North America grew by only 1 percentage point.
This increase is due to the expansion of the company\'s distribution of Monster energy drinks.
Including non
Carbonated drinks like Powerade, sales in North America rose by 2 percentage points.
However, organic income in the region increased by 5 percentage points due to higher prices and smaller packaging.
For the quarter ended July 3, CocaCola Co.
The company said profits had risen to $3. 11 billion (U. S. )
71 cents per share.
Not including one.
Time items, such as proceeds related to the transaction to acquire shares in Monster Beverage Company
It said it earned 63 cents a share.
Analysts expect an average of 60 cents per share, according to Zacks Investment Research.
Gross income, including around the world, fell to $12.
16 billion, affected by the foreign exchange rate. Coca-
Coca-Cola said that organic income excluding these factors increased by 4 percentage points overall during this period.
The company made $2 a year ago.
6 billion, or 58 cents per share.
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