Coca-Cola posts upbeat first quarter results thanks to focus on healthier drinks
Slimming down its operations and revamping its products for healthy-minded consumers helped Coca-Cola boost its first-quarter sales, beating analysts’ estimates.
The world’s largest beverage company said that increasing demand for Coke Zero and the rebranding of Diet Coke in sleeker tins and flavours helped to encourage positive volume growth in North America.
The Atlanta-based firm has been selling off its bottling facilities in recent years to refocus on its vision as a “total beverage company”.
After a lengthy transition, the strategy says that this strategy is helping the company stay on-track to achieve its full-year targets,
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Coca-Cola’s net revenue fell 16% to $7.34bn, due to the divestment of its bottling operations, beating analysts’ estimations of $7.34bn.
The beverage company said that its saw positive volume growth of 3% and also noted that organic sales - which excludes gains from acquisitions or divestitures - rose 5% in the first quarter.
"We're encouraged with our first quarter performance as we continue our evolution as a consumer-centric, total beverage company," said James Quincey, President and CEO of The Coca-Cola Company.
"We have the right strategies in place and remain confident in our ability to achieve our full-year guidance."
Coca-Cola’s results were also lifted by its portfolio of sparkling waters with the carbonated versions of its Dasani and Smartwater brand’s seeing double-digit growth.
The beverage giant’s recent acquisitions have also paid off.
It’s recent acquisition of Topo Chico’s US distribution rights, helped the brand grow its US retail value over 30% during the quarter.
Starbucks to open 10,000 sustainable stores in bid to save US$50mn
The plans come under an initiative called the “Starbucks G...
Starbucks has announced plans to open 10,000 “greener stores” around the world by 2025
The plans come under an initiative called the “Starbucks Greener Stores Framework”, which the coffee company will develop with experts in the field such as SCS Global Services, and the World Wildlife Fund.
Kevin Johnson, Starbucks’ CEO, said in a company statement that Starbucks has a responsibility to promote environmental sustainability.
“We are a company in [sic] that believes, in the fabric of mission and values, that the pursuit of profit is not in conflict with the pursuit of doing good”.
The announcement aligns with Starbucks’ efforts over the past decade to create sustainable buildings, working in partnership with the US Green Building Council.
The company has said it will go beyond the Leadership in Energy and Environmental Design (LEED) sustainable building criteria, which it developed alongside the US Green Building Council, to focus on powering its stores in the US and Canada with 100% renewable energy.
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Starbucks plans to introduce technology to both new buildings and in renovations of existing stores that will save 25-30% on energy and water use.
Marketing Magazine said this could save Starbucks around US$50mn incrementally over the next decade.
This year, Starbucks committed to eliminate its reliance on single-use straws in 28,000 stores by 2020, and also said that it is developing compostable paper cups.