Coca Cola reports decline in global sales volume: Report

Coca Cola thought it had struck gold when it bought sports drink BodyArmor for $5.6 billion in 2021. However, the sales of the beverage declined in recent months as Coke combined the brand with its other sports drink, Powerade. This led to a fall in Coca-Cola’s US sports-drink market share in the past few months, as per a Goldman Sachs analysis of Nielsen data. Taking the loss into account, the Coca Cola's Chief Executive Officer (CEO) James Quincey told the Wall Street Journal (WSJ) that the company needs to buck up. “We need to get that double act working well. We had some hiccups in 2022 as we brought those two things together, so we need to do better.”Coca-Cola said its global revenue grew 7 percent in the latest quarter, as per the WSJ report. The soda company reported a 12 percent rise in global price/mix, a figure that takes into account price increases as well as changes in package sizes and retail sales channels. The global sales volume of Coca-Cola fell 1 percent, mostly from the firm’s suspension of operations in Russia. The global sales volume slid in at least four quarters for the first time.The company expects sales growth to slow, with organic revenue projected to grow between 7 and 8 percent, down from 16 percent in 2022.However, Quincey was sure that the upcoming weeks would help the brand turn its fortunes around. Admitting that Coke needs to "reset" itself, he added that the situation was not " atypical" when companies buy a smaller firm and integrate it.A spokeswoman of Coca-Cola stated that the same team manages the BodyArmor and Powerade brands now. The turnaround plan for the sports drinks incorporates new marketing campaigns that are going to commence in a few weeks for both brands.The corporation relaunched Powerade with a new formula that contains more electrolytes. The spokesperson went on to add that BodyArmor will roll out new flavours and pack options in the first half of this year. The developments come as Coke's rival PepsiCo said that its sales shot up almost 11 percent in the fourth quarter.Coca-Cola and other beverage firms have faced a hard time with start-up brands after spending a big amount to purchase them. As per media reports, industry experts believe that it is because the brands are not big enough to thrive in a large distribution system of companies like Coke, which is designed to maximise the sales of soda. Under the ownership of Coca-Cola, the brands that have languished include VitaminWater, Odwalla, and Honest Tea. The Odwalla was discontinued by Coke in 2020. The soda company also closed down Honest Tea last year.Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.