Coca-Cola Reports 5 Percent Year-To-Date Volume Growth

The Coca-Cola Co. reported strong third quarter and year-to-date 2012 results, with solid volume and revenue growth, and continued volume and value share gains in total nonalcoholic ready-to-drink (NARTD) beverages, as well as across nearly every beverage category in which the Company competes.

Muhtar Kent, chairman and chief executive officer of The Coca-Cola Co. said, in a prepared statement, "We are pleased with our third quarter and year-to-date results. We continue to deliver consistent and solid performance, with our business growing worldwide volume by 4 percent in the quarter and 5 percent year-to-date. Importantly, we realized growth in the quarter across all five of our global geographic operating groups, despite continued volatility in the worldwide economy. We have been able to crack the calculus for growth in this environment. We have done this by consistently investing in our system and our brands to ensure that our global portfolio is more relevant and healthier today than it has ever been. We remain resolutely focused on ensuring that we leverage our wonderful heritage and fuse it with what is expected by our consumers today in order to earn and sustain our place in their daily lives tomorrow."

Performance Highlights

The Coca-Cola Co. reported strong worldwide volume growth of 4 percent in the third quarter and 5 percent year-to-date. Volume growth in the quarter was well-balanced around the world, with growth in all geographic operating groups as well as growth across both developed markets (+2 percent) and emerging markets (+7 percent). The company reported solid growth in key developed markets, including North America (+2 percent), Japan (+2 percent) and Europe (+1 percent), which reported growth across all business units in the quarter. In addition, the company delivered strong volume growth in key emerging markets such as Thailand (+19 percent) and India (+15 percent) in the quarter. The China business delivered 2 percent volume growth in the quarter and 6 percent growth year-to-date.

In the third quarter, Coca-Cola grew global volume and value share in total NARTD beverages, with volume and value share gains across nearly every beverage category in which it competes. Brand health remains consistently strong, with continued improvements in favorite brand scores and growth among consumers who enjoy at least one product from the company's broad portfolio of beverage brands per week. Through occasion-based brand, package, price and channel segmentation strategy, it remain closely connected to its consumers with a dual focus on recruitment and affordability. The company's immediate consumption beverage volume continues to grow, up 4 percent globally in the quarter and 5 percent year-to-date.

Worldwide sparkling beverage volume grew 3 percent in the quarter and year-to-date. This represents nearly 450 million incremental unit cases year-to-date, or the equivalent of adding another Russia to its global business. It grew volume and value share in global core sparkling beverages in the quarter, led by brand Coca-Cola and reflecting a balanced portfolio approach to growth in the core sparkling beverage category. Worldwide brand Coca-Cola volume grew 2 percent in the quarter and 3 percent year-to-date, with growth in the quarter across diverse markets, including India (+34 percent), Russia (+18 percent), Brazil (+3 percent), Mexico (+3 percent) and South Africa (+2 percent). In addition, worldwide Fanta volume grew 7 percent in the quarter and 5 percent year-to-date, and Sprite volume grew 4 percent in the quarter and 5 percent year-to-date, as it leveraged global marketing campaigns in locally relevant ways.

Worldwide still beverage volume grew 10 percent in the quarter and 9 percent year-to-date, with solid growth across beverage categories, including packaged water, juices and juice drinks, ready-to-drink tea and coffee, sports drinks and energy drinks. Excluding the impact of acquisitions, still beverage volume grew 8 percent in the quarter and year-to-date. The company grew global volume and value share in total still beverages and delivered share gains across all still beverage categories in which it competes. Ready-to-drink tea volume grew 13 percent in the quarter, with continued strong performance of key brands such as Gold Peak and Honest Tea in North America, Ayataka green tea in Japan and Fuze Tea, which it continued to expand across markets worldwide during the quarter. Packaged water volume grew 10 percent in the quarter, driven by its focus on innovative and sustainable packaging and immediate consumption occasions, most recently with its new "PlantBottle with a Twist" campaign, first aired during the summer 2012 Olympic Games. Energy drinks volume grew 19 percent in the quarter driven by growth across the company's global portfolio of energy brands. 

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