Today, The Coca-Cola Co., Atlanta, reported strong third quarter operating results, with volume increasing 5 percent in both the quarter and year-to-date, ahead of its long-term growth target and cycling 2 percent volume growth in the prior year quarter. North America volume grew 2 percent in the quarter, as the company continues to integrate Coca-Cola Enterprises’ (CCE) North American business. International volume increased 6 percent in the quarter.
Coca-Cola reported that net revenue grew 5 percent in the quarter and year-to-date. Year-to-date worldwide volume grew 5 percent, with volume growth led by the Coca-Cola brand, up 4 percent in the quarter and year-to-date.
Globally, the company gained value share and maintained volume share in total non-alcohol ready-to-drink beverages driven by volume and value share gains across core sparkling beverages, still beverages, juices and juice drinks, sports drinks, and bottled water. It also gained volume share in energy drinks.
Coca-Cola’s North America group’s volume grew during the quarter with volume and value share gains across most categories, driven by a continued focus on a well-defined brand, price, package and channel strategy, the company said. Year-to-date volume grew 1 percent, cycling a decline of 2 percent in the prior year. Net revenues for the quarter increased 2 percent, reflecting a 2 percent increase in concentrate sales and positive price/mix.
North American volume for sparkling beverages was even in the quarter, while Coca-Cola Zero delivered double-digit volume growth for the 18th consecutive quarter. Sprite also saw growth, and Fanta had its strongest quarter of the year, the company said.
North America still beverage volume grew 8 percent, led by strong double-digit growth of Powerade (up 32 percent) and Simply (up 23 percent). During the quarter, Coca-Cola gained volume and value share in juices and juice drinks, sports drinks, and ready-to-drink tea. In addition, the Glacéau business grew mid-single digits in North America, and Vitaminwater grew low-single digits. The company has grown volume share in still beverages for 11 of the past 13 quarters and value share for 12 of the last 13 quarters, it reported.
Muhtar Kent, chairman and chief executive officer of The Coca-Cola Co. said, in a statement: "We are very pleased with our third quarter performance. We successfully completed our acquisition of CCE's North American business and the sale of our Norway and Sweden bottling operations to CCE, on plan and in line with our commitment. And we closed this transaction on the heels of a strong quarter. We continue to build on our momentum, delivering solid volume, revenue and profit growth this quarter, with our results exceeding all of our long-term targets and generating sustainable value for our shareowners.
“This quarter, once again, underscores how we are advancing our 2020 Vision from a position of strength as we enter a new era of growth for The Coca-Cola Co. Together, in close alignment with our global bottling partners, we are executing with excellence around the world. Our strategies, our brands, our marketing, our innovation, our partnerships and our people are defining new growth opportunities today and shaping our system’s vision for this decade.
"We are now intensely focused on driving a fast and seamless integration effort in our North America operations,” he said. “This evolution of our franchise system is an important milestone in realizing our 2020 Vision, strengthening our commitment to best serve our customers and consumers and facilitating our ability to achieve sustainable and profitable growth in this, our flagship market.”
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