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Coca-Cola sells more drinks but soda dips

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NEW YORK (AP) — Coca-Cola, the world’s biggest beverage maker, said Tuesday that the amount of soda it sold globally fell for first time in 15 years.

The drop in the first quarter was offset by stronger sales of its noncarbonated drinks that include Minute Maid, Powerade and Dasani bottled water. Overall volume rose 2 percent, an improvement from the 1 percent increase the previous quarter.

But the 1 percent decline in global soda volume is notable for Coca-Cola: The last time the figure fell was in 1999, according to the company.

Gary Fayard, the company’s outgoing chief financial officer, attributed the drop partly to the timing of Easter, which falls in the second quarter this year instead of the first.

“It’s not as concerning to us as it would look at first pass,” he said in a phone interview.

He also cited a double-digit soda decline in Great Britain, where the company stood by its pricing despite switching to smaller bottles. For the full year, Fayard said he expects global soda volume to be positive.

The decline in global soda volume comes as Coca-Cola increasingly is relying on non-carbonated beverages to boost sales as sodas continue to face pressure, both at home and abroad. In developed nations like the U.S., soda has been under fire for years over concerns that it fuels weight gain. More recently, executives have blamed declines in diet sodas on concerns about artificial sweeteners.

For the quarter, Coca-Cola’s soda volume slipped 1 percent in North America and 5 percent in Europe. It also took a hit in Mexico as the country instituted a tax on the sugary drinks, although the company didn’t specify the severity of the decline.

For now, sodas still account for 75 percent of the company’s case volume outside the U.S. Overall, 81 percent of the company’s case volume comes from overseas.

Going forward, CEO Muhtar Kent stressed during a call with reporters that the company would pursue “balanced growth between stills and sparkling,” as well as different regions of the world.

Coca-Cola isn’t alone in its struggles to boost soda sales. PepsiCo Inc., which reports its quarterly results Thursday, has suffered even steeper declines despite stepped-up marketing, including sponsorship of the Super Bowl halftime show.

Although both companies sell a wide array of beverages, sodas remain a big part of their businesses and they’re scrambling to figure out ways to stop the declines even as they rely more heavily on other types of drinks.

In the year ahead, Coca-Cola plans to increase its marketing budget by $400 million to “north of $4 billion,” Kent said. The company also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere.

For the quarter that ended March 28, unfavorable currency exchange rates contributed to an 8 percent decline in profit.

Adjusted for such one-time factors, earnings per share were in line with Wall Street expectations and Coca-Cola shares rose 3 percent to $40.09.

Net income fell to $1.62 billion, or 36 cents per share. That compares with net income of $1.77 billion, or 39 cents per share a year ago.

Excluding one-time items, net income was 44 cents per share.

Revenue fell 4 percent to $10.58 billion, but was above the $10.5 billion Wall Street expected.

—-

AP Business Writer Mae Anderson contributed to this report.

Follow Candice Choi at www.twitter.com/candicechoi

Coca-Cola sells more drinks but soda dips

KDWN

NEW YORK (AP) — Coca-Cola, the world’s biggest beverage maker, said Tuesday that the amount of soda it sold globally fell for first time in 15 years.

The drop in the first quarter was offset by stronger sales of its noncarbonated drinks that include Minute Maid, Powerade and Dasani bottled water. Overall volume rose 2 percent, an improvement from the 1 percent increase the previous quarter.

But the 1 percent decline in global soda volume is notable for Coca-Cola: The last time the figure fell was in 1999, according to the company.

Gary Fayard, the company’s outgoing chief financial officer, attributed the drop partly to the timing of Easter, which falls in the second quarter this year instead of the first.

“It’s not as concerning to us as it would look at first pass,” he said in a phone interview.

He also cited a double-digit soda decline in Great Britain, where the company stood by its pricing despite switching to smaller bottles. For the full year, Fayard said he expects global soda volume to be positive.

The decline in global soda volume comes as Coca-Cola increasingly is relying on non-carbonated beverages to boost sales as sodas continue to face pressure, both at home and abroad. In developed nations like the U.S., soda has been under fire for years over concerns that it fuels weight gain. More recently, executives have blamed declines in diet sodas on concerns about artificial sweeteners.

For the quarter, Coca-Cola’s soda volume slipped 1 percent in North America and 5 percent in Europe. It also took a hit in Mexico as the country instituted a tax on the sugary drinks, although the company didn’t specify the severity of the decline.

For now, sodas still account for 75 percent of the company’s case volume outside the U.S. Overall, 81 percent of the company’s case volume comes from overseas.

Going forward, CEO Muhtar Kent stressed during a call with reporters that the company would pursue “balanced growth between stills and sparkling,” as well as different regions of the world.

Coca-Cola isn’t alone in its struggles to boost soda sales. PepsiCo Inc., which reports its quarterly results Thursday, has suffered even steeper declines despite stepped-up marketing, including sponsorship of the Super Bowl halftime show.

Although both companies sell a wide array of beverages, sodas remain a big part of their businesses and they’re scrambling to figure out ways to stop the declines even as they rely more heavily on other types of drinks.

In the year ahead, Coca-Cola plans to increase its marketing budget by $400 million to “north of $4 billion,” Kent said. The company also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere.

For the quarter that ended March 28, unfavorable currency exchange rates contributed to an 8 percent decline in profit.

Adjusted for such one-time factors, earnings per share were in line with Wall Street expectations and Coca-Cola shares rose 3 percent to $40.09.

Net income fell to $1.62 billion, or 36 cents per share. That compares with net income of $1.77 billion, or 39 cents per share a year ago.

Excluding one-time items, net income was 44 cents per share.

Revenue fell 4 percent to $10.58 billion, but was above the $10.5 billion Wall Street expected.

—-

AP Business Writer Mae Anderson contributed to this report.

Follow Candice Choi at www.twitter.com/candicechoi

Coca-Cola sells more drinks but soda dips

KDWN

NEW YORK (AP) — Coca-Cola, the world’s biggest beverage maker, said Tuesday that the amount of soda it sold globally fell for first time in 15 years.

The drop in the first quarter was offset by stronger sales of its noncarbonated drinks that include Minute Maid, Powerade and Dasani bottled water. Overall volume rose 2 percent, an improvement from the 1 percent increase the previous quarter.

But the 1 percent decline in global soda volume is notable for Coca-Cola: The last time the figure fell was in 1999, according to the company.

Gary Fayard, the company’s outgoing chief financial officer, attributed the drop partly to the timing of Easter, which falls in the second quarter this year instead of the first.

“It’s not as concerning to us as it would look at first pass,” he said in a phone interview.

He also cited a double-digit soda decline in Great Britain, where the company stood by its pricing despite switching to smaller bottles. For the full year, Fayard said he expects global soda volume to be positive.

The decline in global soda volume comes as Coca-Cola increasingly is relying on non-carbonated beverages to boost sales as sodas continue to face pressure, both at home and abroad. In developed nations like the U.S., soda has been under fire for years over concerns that it fuels weight gain. More recently, executives have blamed declines in diet sodas on concerns about artificial sweeteners.

For the quarter, Coca-Cola’s soda volume slipped 1 percent in North America and 5 percent in Europe. It also took a hit in Mexico as the country instituted a tax on the sugary drinks, although the company didn’t specify the severity of the decline.

For now, sodas still account for 75 percent of the company’s case volume outside the U.S. Overall, 81 percent of the company’s case volume comes from overseas.

Going forward, CEO Muhtar Kent stressed during a call with reporters that the company would pursue “balanced growth between stills and sparkling,” as well as different regions of the world.

Coca-Cola isn’t alone in its struggles to boost soda sales. PepsiCo Inc., which reports its quarterly results Thursday, has suffered even steeper declines despite stepped-up marketing, including sponsorship of the Super Bowl halftime show.

Although both companies sell a wide array of beverages, sodas remain a big part of their businesses and they’re scrambling to figure out ways to stop the declines even as they rely more heavily on other types of drinks.

In the year ahead, Coca-Cola plans to increase its marketing budget by $400 million to “north of $4 billion,” Kent said. The company also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere.

For the quarter that ended March 28, unfavorable currency exchange rates contributed to an 8 percent decline in profit.

Adjusted for such one-time factors, earnings per share were in line with Wall Street expectations and Coca-Cola shares rose 3 percent to $40.09.

Net income fell to $1.62 billion, or 36 cents per share. That compares with net income of $1.77 billion, or 39 cents per share a year ago.

Excluding one-time items, net income was 44 cents per share.

Revenue fell 4 percent to $10.58 billion, but was above the $10.5 billion Wall Street expected.

—-

AP Business Writer Mae Anderson contributed to this report.

Follow Candice Choi at www.twitter.com/candicechoi

Coca-Cola sells more drinks but soda dips

KDWN

NEW YORK (AP) — Coca-Cola sold more drinks in the first quarter, but it wasn’t because of soda.

The world’s biggest beverage maker said Tuesday that its global volume for soda fell for first time in at least a decade. The drop was offset by stronger sales of noncarbonated drinks such as juice, and overall volume rose 2 percent.

A stronger dollar contributed to an 8 percent decline in profit for the quarter. Adjusted for such one-time factors, earnings per share were in line with Wall Street expectations, and the company’s shares rose more than 3 percent.

Gary Fayard, the company’s outgoing chief financial officer, attributed the global decline in sodas partly to the timing of Easter, which falls in the second quarter this year instead of the first.

“It’s not as concerning to us as it would look at first pass,” he said in a phone interview.

He also cited a double-digit soda decline in Great Britain, where the company stood by its pricing despite switching to smaller bottles. For the full year, Fayard said he expects global soda volume to be positive.

Coca-Cola Co. sells a wide variety of drinks, including Minute Maid, Powerade and Dasani bottled water. But the quarterly decline in soda underscores the pressures the company is facing around its flagship product, both at home and abroad.

Soda has been under fire in developed nations such as the United States for years over concerns that it fuels weight gain. More recently, executives have blamed even steeper declines in diet sodas to worries about artificial sweeteners.

In North America, soda volume slipped 1 percent in the quarter. Soda volume also took a hit in Mexico as the country instituted a tax on the sugary drinks. Fayard noted the company sells many other types of drinks. But for now, sodas still account for 75 percent of the company’s case volume outside the U.S.

Overall, 81 percent of the company’s case volume comes from overseas.

Coca-Cola isn’t alone in its struggles to boost soda sales. PepsiCo Inc., which reports its quarterly results Thursday, has suffered even steeper declines despite stepped-up marketing, including sponsorship of the Super Bowl halftime show.

Although both companies sell a wide array of beverages, sodas remain a big part of their businesses and they’re scrambling to figure out ways to stop the declines even as they rely more heavily on other types of drinks.

In the year ahead, Coca-Cola plans to increase its marketing budget by $400 million. The company also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere.

For the quarter ended March 28, Coca-Cola’s net income fell to $1.62 billion, or 36 cents per share. That compares with net income of $1.77 billion, or 39 cents per share a year ago.

Excluding one-time items, net income was 44 cents per share, matching analyst expectations.

Revenue fell 4 percent to $10.58 billion, but was above the $10.5 billion Wall Street expected.

Companies like Coca-Cola that do a large portion of their business overseas take a hit to revenue when the dollar is strong, because foreign currencies convert back into fewer dollars.

Coca-Cola’s shares were up more than 3 percent at $40.09 in morning trading.

—-

AP Business Writer Mae Anderson contributed to this report.

Follow Candice Choi at www.twitter.com/candicechoi

Coca-Cola sells more drinks but soda dips

KDWN

NEW YORK (AP) — Coca-Cola sold more drinks in the first quarter, but it wasn’t because of soda.

The world’s biggest beverage maker said Tuesday that its global volume for soda fell for first time in at least a decade. The drop was offset by stronger sales of noncarbonated drinks such as juice, and overall volume rose 2 percent.

A stronger dollar contributed to an 8 percent decline in profit for the quarter. Adjusted for such one-time factors, earnings per share were in line with Wall Street expectations, and the company’s shares rose more than 3 percent.

Gary Fayard, the company’s outgoing chief financial officer, attributed the global decline in sodas partly to the timing of Easter, which falls in the second quarter this year instead of the first.

“It’s not as concerning to us as it would look at first pass,” he said in a phone interview.

He also cited a double-digit soda decline in Great Britain, where the company stood by its pricing despite switching to smaller bottles. For the full year, Fayard said he expects global soda volume to be positive.

Coca-Cola Co. sells a wide variety of drinks, including Minute Maid, Powerade and Dasani bottled water. But the quarterly decline in soda underscores the pressures the company is facing around its flagship product, both at home and abroad.

Soda has been under fire in developed nations such as the United States for years over concerns that it fuels weight gain. More recently, executives have blamed even steeper declines in diet sodas to worries about artificial sweeteners.

In North America, soda volume slipped 1 percent in the quarter. Soda volume also took a hit in Mexico as the country instituted a tax on the sugary drinks. Fayard noted the company sells many other types of drinks. But for now, sodas still account for 75 percent of the company’s case volume outside the U.S.

Overall, 81 percent of the company’s case volume comes from overseas.

Coca-Cola isn’t alone in its struggles to boost soda sales. PepsiCo Inc., which reports its quarterly results Thursday, has suffered even steeper declines despite stepped-up marketing, including sponsorship of the Super Bowl halftime show.

Although both companies sell a wide array of beverages, sodas remain a big part of their businesses and they’re scrambling to figure out ways to stop the declines even as they rely more heavily on other types of drinks.

In the year ahead, Coca-Cola plans to increase its marketing budget by $400 million. The company also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere.

For the quarter ended March 28, Coca-Cola’s net income fell to $1.62 billion, or 36 cents per share. That compares with net income of $1.77 billion, or 39 cents per share a year ago.

Excluding one-time items, net income was 44 cents per share, matching analyst expectations.

Revenue fell 4 percent to $10.58 billion, but was above the $10.5 billion Wall Street expected.

Companies like Coca-Cola that do a large portion of their business overseas take a hit to revenue when the dollar is strong, because foreign currencies convert back into fewer dollars.

Coca-Cola’s shares were up more than 3 percent at $40.09 in morning trading.

—-

AP Business Writer Mae Anderson contributed to this report.

Follow Candice Choi at www.twitter.com/candicechoi

Coca-Cola sells more drinks but soda dips

KDWN

NEW YORK (AP) — Coca-Cola sold more drinks in the first quarter, but it wasn’t because of soda.

The world’s biggest beverage maker said Tuesday that its global volume for soda fell for first time in at least a decade. The drop was offset by stronger sales of noncarbonated drinks such as juice, and overall volume rose 2 percent.

A stronger dollar contributed to an 8 percent decline in profit for the quarter. Adjusted for such one-time factors, earnings per share were in line with Wall Street expectations, and the company’s shares rose more than 3 percent.

Gary Fayard, the company’s outgoing chief financial officer, attributed the global decline in sodas partly to the timing of Easter, which falls in the second quarter this year instead of the first.

“It’s not as concerning to us as it would look at first pass,” he said in a phone interview.

He also cited a double-digit soda decline in Great Britain, where the company stood by its pricing despite switching to smaller bottles. For the full year, Fayard said he expects global soda volume to be positive.

Coca-Cola Co. sells a wide variety of drinks, including Minute Maid, Powerade and Dasani bottled water. But the quarterly decline in soda underscores the pressures the company is facing around its flagship product, both at home and abroad.

Soda has been under fire in developed nations such as the United States for years over concerns that it fuels weight gain. More recently, executives have blamed even steeper declines in diet sodas to worries about artificial sweeteners.

In North America, soda volume slipped 1 percent in the quarter. Soda volume also took a hit in Mexico as the country instituted a tax on the sugary drinks. Fayard noted the company sells many other types of drinks. But for now, sodas still account for 75 percent of the company’s case volume outside the U.S.

Overall, 81 percent of the company’s case volume comes from overseas.

Coca-Cola isn’t alone in its struggles to boost soda sales. PepsiCo Inc., which reports its quarterly results Thursday, has suffered even steeper declines despite stepped-up marketing, including sponsorship of the Super Bowl halftime show.

Although both companies sell a wide array of beverages, sodas remain a big part of their businesses and they’re scrambling to figure out ways to stop the declines even as they rely more heavily on other types of drinks.

In the year ahead, Coca-Cola plans to increase its marketing budget by $400 million. The company also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere.

For the quarter ended March 28, Coca-Cola’s net income fell to $1.62 billion, or 36 cents per share. That compares with net income of $1.77 billion, or 39 cents per share a year ago.

Excluding one-time items, net income was 44 cents per share, matching analyst expectations.

Revenue fell 4 percent to $10.58 billion, but was above the $10.5 billion Wall Street expected.

Companies like Coca-Cola that do a large portion of their business overseas take a hit to revenue when the dollar is strong, because foreign currencies convert back into fewer dollars.

Coca-Cola’s shares were up more than 3 percent at $40.09 in morning trading.

—-

AP Business Writer Mae Anderson contributed to this report.

Follow Candice Choi at www.twitter.com/candicechoi

Coca-Cola sells more drinks but soda dips

KDWN

NEW YORK (AP) — Coca-Cola sold more drinks in the first quarter, but it wasn’t because of soda.

The world’s biggest beverage maker said Tuesday that its global sales volume for soda fell for first time in at least a decade. The drop was offset by stronger sales of noncarbonated drinks such as juice, and overall volume rose 2 percent.

A stronger dollar contributed to an 8 percent decline in profit for the quarter.

Gary Fayard, the company’s chief financial officer, attributed the decline in sodas partly to the timing of Easter, which falls in the second quarter this year instead of the first.

“It’s not as concerning to us as it would look at first pass,” he said in a phone interview.

He also noted that the soda results were hurt by results in Great Britain, where the company maintained pricing despite switching to smaller bottles. For the full year, Fayard said he expects global soda volume to be positive.

Coca-Cola Co. sells a wide variety of drinks, including Sprite, Minute Maid, Powerade and Dasani bottled water. But the quarterly decline is soda volume nevertheless underscores the pressures the company is facing around its flagship product, both at home and abroad.

Soda has been under fire in developed nations such as the United States for years over concerns that it fuels weight gain. More recently, executives have blamed even steeper declines among diet sodas to concerns about artificial sweeteners.

In North America, soda volume slipped 1 percent in the quarter. Soda volume also took a hit in Mexico as the country instituted a tax on the sugary drinks. Coca-Cola did not disclose the severity of the decline in Mexico, but Fayard said it was in the single-digits.

Coca-Cola gets a big portion of its business from overseas and from soda. Sales outside the U.S. accounts for 81 percent of Coca-Cola’s volume. Of that, sodas account for 75 percent of volume.

Coca-Cola isn’t alone in its struggles to boost soda sales. PepsiCo Inc., which reports its earnings Thursday, has seen even steeper declines despite stepped-up marketing, including sponsorship of the Super Bowl halftime show.

Although both companies sell a wide array of beverages, sodas remain a big part of their businesses and they’re scrambling to figure out ways to stop the declines even as they shift to pushing other types of drinks.

In the year ahead, Coca-Cola plans slash costs and increase marketing spending by $400 million. The company also introduced a version of its namesake soda sweetened with a mix of stevia and sugar in Argentina, with plans to eventually introduce the drink elsewhere.

For the quarter ended March 28, Coca-Cola’s net income fell to $1.62 billion, or 36 cents per share. That compares with net income of $1.77 billion, or 39 cents per share a year ago.

Excluding one-time items, net income totaled 44 cents per share, matching analyst expectations.

Revenue fell 4 percent to $10.58 billion. Analysts expected $10.5 billion. Companies like Coca-Cola that do a large portion of their business overseas take a hit to revenue when the dollar is strong, because foreign currencies convert back into fewer dollars.

Shares were up nearly 3 percent at $39.73 in pre-market trading.

—-

AP Business Writer Mae Anderson contributed to this report.