Higher prices haven’t affected demand for soft drinks.
Global economic inflation has been hitting all aspects of consumer purchasing habits, from major purchases to weekly snacks. Even so, there are certain brands and products that always have a healthy consumer demand, even in the event of rising prices. One of those brands is Coca-Cola.
This morning, Coca-Cola reported their revenue for Q4 2022. While their overall earnings for the quarter were about what was expected, the company actually managed to beat Wall Street analyst expectations on their revenue, bringing in $10.13 billion against the expected $10.02 billion.
A healthy demand for regular Coca-Cola products like soft drinks kept revenue strong, especially with the reopening of China. However, Coke isn’t expecting this growth to last, as a downturn in sales of dairy and juice products, the conclusion of business in Russia, and indeed, the reality of inflation will likely hamper their numbers as the year goes on.
Coca-Cola reported a 7% rise in fourth-quarter sales, but expects growth to slow https://t.co/J6twiN3Ehp
— The Wall Street Journal (@WSJ) February 14, 2023
“Inflation is likely to moderate as we go through the year, and therefore we expect the rate in which prices are going to increase will start to moderate and become more normal by the end of the year,” Coke CEO James Quincey told CNBC.