BY EMMANUEL OGBONNA
Coca-Cola reported firmer consumer demand in the United States during the final months of the year, showing resilience even as the company raised prices across much of its portfolio.
The Atlanta-based beverage maker said global unit case volumes increased 1% in the October-to-December period, supported by growth in key markets including the United States, Japan and Brazil. In North America, volumes also rose 1%, marking a notable turnaround after several consecutive quarters of flat or declining sales.
The company attributed part of its performance to pricing actions and shifting consumer preferences. Coca-Cola said it increased prices by 4% in North America and by 1% globally during the quarter. Despite those higher prices, demand for several major brands remained strong. Coca-Cola Zero Sugar continued to gain momentum, with sales climbing 13% during the period, reflecting ongoing interest in lower-sugar options.
Beyond its flagship sodas, the company saw improved demand for water, sports drinks, coffee and tea. At the same time, some categories struggled, with juices and dairy-based products posting weaker results as consumers adjusted their spending habits.
Coca-Cola has previously said it is seeing a widening gap in purchasing behavior among consumers, particularly in North America and Europe. Higher-income shoppers have continued to gravitate toward premium offerings such as Smartwater, Topo Chico and Fairlife, while middle- and lower-income consumers have become more cautious as inflation and higher living costs put pressure on household budgets.
In response, the company has taken steps to maintain affordability. Last month, Coca-Cola rolled out 7.5-ounce mini cans at convenience stores across North America for the first time, aiming to give price-sensitive consumers a lower-cost option while preserving margins.
Financially, the company delivered mixed results. Revenue rose 2% to $11.8 billion for the quarter, coming in below market expectations. Analysts surveyed by FactSet had forecast revenue of $12.05 billion. Net income increased 3% to $2.3 billion. On an adjusted basis that excludes one-time items, Coca-Cola earned 58 cents per share, exceeding Wall Street’s expectations by 2 cents.
Looking ahead, Coca-Cola said it expects organic revenue growth of 4% to 5% in 2026. The company posted 5% organic revenue growth last year, and analysts had anticipated a similar pace in the current year, suggesting cautious optimism tempered by ongoing economic uncertainty.
Shares of Coca-Cola fell nearly 4% in premarket trading following the release of the results, reflecting investor concern over the revenue shortfall and the outlook for consumer spending.
The company is also preparing for a leadership transition. Coca-Cola announced in December that Henrique Braun, the current chief operating officer and a 30-year veteran of the company, will take over as chief executive officer on March 31. Current Chairman and CEO James Quincey will move into the role of executive chairman, a shift that signals continuity at the top as the company navigates evolving consumer trends and global economic pressures.
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