logo
Coca-Cola leaned on marketing to navigate choppy economic waters in Q2

Coca-Cola leaned on marketing to navigate choppy economic waters in Q2

Yahoo6 days ago
This story was originally published on Marketing Dive. To receive daily news and insights, subscribe to our free daily Marketing Dive newsletter.
Dive Brief:
Coca-Cola saw organic revenue grow 5% in Q2 despite global unit case volume declining by 1%, per an earnings report. The company still expects to deliver 5% to 6% organic revenue growth this year.
Marketing campaigns were cited by executives as contributing to the growth of different brands, including original Coca-Cola, Coca‑Cola Zero Sugar and Diet Coke.
The beverage maker is navigating a volatile global economy and recently announced plans to use U.S. cane sugar in its signature beverage, a change first announced by President Donald Trump.
Dive Insight:
Coca-Cola's Q2 earnings, which beat Wall Street's expectations, demonstrate how the CPG giant is driving growth despite facing different challenges around the globe. The company's organic growth rate is in line with its guidance for the full year even as volumes soften.
'[While] the external environment continues to be dynamic, and there is no doubt that much uncertainty remains in the downhill, we remain growth-orientated,' said CEO James Quincey on a call discussing the results with investors. 'We're continuing to pivot our plans as needed, and we are harnessing our all-weather strategy to deliver on our growth ambitions.'
Part of that 'all-weather strategy' rests on marketing, which executives cited as bolstering a number of brands during the quarter. The company used contextually relevant advertising to push messages of value and affordability in Q2, and saw volume growth for Coca-Cola Zero Sugar, Diet Coke, Fanta, Fairlife, Bodyarmor and Powerade.
A relaunch of the 'Share a Coke' campaign was activated on more than 10 billion bottles and cans in more than 120 countries and included over 30,000 names tailored to local markets. The effort contributed to single-serve transaction growth in the category and helped Coca-Cola Zero Sugar see double-digit volume growth for the fourth consecutive quarter. Meanwhile, Diet Coke's 'This is My Taste' campaign, which was inspired by social media insights, contributed to the product's fourth consecutive quarter of volume growth in North America.
Coca-Cola's marketing was also a source of productivity-related savings that improved the company's margins. The marketing transformation that the company has undertaken for the last few years is finding not just effectiveness via digital and segmented advertising, but also efficiencies in advertising production and media buying, Quincey explained.
'They're going to need to make investments in different areas of the company to drive future sales, but they also like to get productivity enhancements to offset some of those investments so… they can grow the top line and improve margins,' said Dave Novosel, senior bond analyst Gimme Credit. 'The fact that they've been able to do both is encouraging… The advertising productivity is a big part of that.'
Coca-Cola's marketing transformation has also helped the company quickly test ideas, share learnings and scale campaigns across its portfolio. To that point, the company saw consumer perception improve significantly in Mexico as it launched initiatives like its 'Juntos Posen' campaign and an activation around the World Cup. The use of targeted, contextual advertising also helped Coca-Cola push back on claims about how its product is made that have dogged the company in several markets and demographics.
The company also made official plans to expand its flagship product with an offering made with U.S. cane sugar as a way to offer consumers more choices. The plan was first announced last week by President Trump.
'As you may have seen last week, we appreciate the President's enthusiasm for our Coca-Cola brand,' Quincey said on the earnings call.
Recommended Reading
How Coca-Cola's marketing transformation led to new Smartwater campaign
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump eyes 'world tariff' of 15-20% for most countries
Trump eyes 'world tariff' of 15-20% for most countries

Yahoo

time5 minutes ago

  • Yahoo

Trump eyes 'world tariff' of 15-20% for most countries

By Andrea Shalal TURNBERRY, Scotland (Reuters) -President Donald Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he imposed in April. Trump told reporters his administration will notify some 200 countries soon of their new "world tariff" rate. "I would say it'll be somewhere in the 15 to 20% range," Trump told reporters, sitting alongside British Prime Minister Keir Starmer at his luxury golf resort in Turnberry, Scotland. "Probably one of those two numbers." Trump, who has vowed to end decades of U.S. trade deficits by imposing tariffs on nearly all trading partners, has already announced higher rates of up to 50% on some countries, including Brazil, starting on Friday. The announcements have spurred feverish negotiations by a host of countries seeking lower tariff rates, including India, Pakistan, Canada, and Thailand, among others. The U.S. president on Sunday clinched a huge trade deal with the European Union that includes a 15% tariff on most EU goods, $600 billion of investments in the U.S. by European firms, and $750 billion in energy purchases over the next three years. That followed a $550-billion deal with Japan last week and smaller agreements with Britain, Indonesia, and Vietnam. Other talks are ongoing, including with India, but prospects have dimmed for many more agreements before Friday, Trump's deadline for deals before higher rates take effect. Trump has repeatedly said he favors straightforward tariff rates over complex negotiations. "We're going to be setting a tariff for essentially, the rest of the world," he said again on Monday. "And that's what they're going to pay if they want to do business in the United States. Because you can't sit down and make 200 deals." Canadian Prime Minister Mark Carney said on Monday trade talks with the U.S. were at an intense phase, conceding that his country was still hoping to walk away with a tariff rate below the 35% announced by Trump on some Canadian imports. Carney conceded this month that Canada - which sends 75% of its exports to the United States - would likely have to accept some tariffs. (Additional reporting by Andrew MacAskill in Turnberry, Andrea Shalal in Edinburgh and William James in LondonEditing by Rod Nickel) Sign in to access your portfolio

The Impact of Trump's Big, Beautiful Bill on the Middle vs Upper Class
The Impact of Trump's Big, Beautiful Bill on the Middle vs Upper Class

Yahoo

time28 minutes ago

  • Yahoo

The Impact of Trump's Big, Beautiful Bill on the Middle vs Upper Class

While there are still more than three years to go, one of the most consequential acts of President Donald Trump's second administration will likely be his signing of the One Big Beautiful Bill (OBBB) Act into law. Read More: Find Out: The OBBB was quite controversial — even among Trump's fellow Republicans — due primarily to its projected cuts to Medicaid, as well as its addition of trillions of dollars to America's national debt. Due to those controversial elements (among many others), the budget reconciliation law is expected by its supporters and opponents both to reshape America's economic landscape for years, if not decades, according to Newsweek. Critics of the OBBB, per The Guardian, have argued that it will ultimately only benefit America's wealthiest citizens while also cutting the benefits from the struggling and shrinking middle class. Meanwhile, Republicans have defended the law as one that will slash and burn excess taxation. So, which is true? Who does the OBBB benefit, if anyone? Who does it harm, if anyone? The Middle Class While the OBBB's detractors will argue that the law will do nothing but harm to the American middle class, there are benefits. For instance, the Child Tax Credit was increased to $2,000 per child per family (up from $1,000 previously). There were also changes made to the nature of tax withholdings, which allows workers to slightly increase their take-home pay; further, members of the middle class were able to increase their standard tax deductions and reduce their income tax rates. While these are concrete changes they do remain relatively minimal by comparison to the benefits bestowed upon the upper class. These middle class tax cuts of the OBBB are all set to expire at the end of 2025. On the opposite end of the spectrum, there are potential negatives for the middle class with regards to the OBBB. Perhaps most palpable will be the cost of an additional $3-6 trillion to the federal deficit — the cost of the OBBB will almost surely lead to much higher interest rates. Higher interest rates mean higher prices for nearly everything — financing a new car or home, stopping at the gas pump, and especially shopping at the grocery store. The inflation rate hangover of the COVID-19 era was a major factor in the American middle class in the 2024 election; the cost of the OBBB will certainly be felt by sensitive middle class shoppers in the years to come. The Upper Class In contrast to the middle class, the wealthy stand to gain a great deal from the OBBB. Specifically, the richest 20% of America will see its net income increased by approximately $13,000 per year thanks to various OBBB tax breaks. Speaking of tax cuts, the corporate tax rate was slashed from 35% to 21%, a massive break for the extremely wealthy who either own businesses or rather sizeable stock options. In addition, the Estate Tax exemption nearly doubled, allowing wealthy families the ability to pass on various familial assets valued up to $11 million without any tax penalties. Of note, these upper class tax cuts of the OBBB are permanent, unlike those for the middle class. Bottom Line While there are some benefits to the middle class in the OBBB, it's worth noting that most if not all of them are not only temporary but are rather minor when compared to the massive benefits bequeathed to the American upper class. Additionally, what benefits the middle class does receive are temporary, while those awarded to the upper class are permanent. Overall, the wealthy stand to gain far more than the middle class when it comes to the OBBB. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 4 Affordable Car Brands You Won't Regret Buying in 2025 The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on The Impact of Trump's Big, Beautiful Bill on the Middle vs Upper Class Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Trump says outcome will be known ‘pretty soon' over steel tariffs
Trump says outcome will be known ‘pretty soon' over steel tariffs

Yahoo

time35 minutes ago

  • Yahoo

Trump says outcome will be known ‘pretty soon' over steel tariffs

Donald Trump has hinted that the UK will know 'pretty soon' whether or not tariffs on steel will increase to 50%. The president said the US wants to 'make our own steel' when he faced questions from journalists on Monday. It remains to be seen whether tariffs on British steel imports into America will be eliminated, remain at 25% where they currently stand, or increase further. Asked by reporters at the top of his meeting with Sir Keir Starmer when the cost of steel tariffs will come down, Mr Trump said: 'We're gonna know pretty soon, we're gonna have it pretty soon. 'These people are tough negotiators, OK. We're a big buyer of steel, but we're going to make our own steel and we're going to make our own aluminium for the most part. 'But we buy a lot of aluminium from right here and a lot of steel too.' In a readout after the meeting, Downing Street said the leaders spoke about the 'economic prosperity deal' reached earlier this year to ease US tariffs on the UK. 'The leaders remarked on how beneficial the deal is for working people in the UK and the US and agreed to continue to work together to build further on their close and strong economic relationship,' a spokesperson said. When the UK and US signed a trade deal in June, it reduced tariffs on car and aerospace imports to the US. Agreement on a similar arrangement for Britain's steel imports was not reached, leaving tariffs on steel at 25%. American concerns over steel products made elsewhere in the world, then finished in the UK, are said to be among the sticking points. Business Secretary Jonathan Reynolds had suggested it may take more than Monday's meeting between the two leaders to resolve the matter, telling BBC Breakfast: 'We were very happy to announce the breakthrough that we had a few months ago in relation to sectors like automotive, aerospace, which are really important to the UK economy. 'But we always said it was job saved, but it wasn't job done. There's more to do. 'The negotiations have been going on on a daily basis since then. There's a few issues to push a little bit further today. 'We won't perhaps have anything to announce a resolution of those talks, but there's some sectors that we still need to resolve, particularly around steel and aluminium, and there's the wider conversation about what the US calls its reciprocal tariffs.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store