Coca-Cola beats on zero-sugar sodas, higher prices; to launch cane sugar-based drink
Food companies have rolled out plans to make changes in ingredients and include healthier substitutes amid Health Secretary Robert F. Kennedy Jr.'s Make America Healthy Again (MAHA) campaign.
The Fanta maker's move to launch a product this fall under its trademark Coca-Cola range comes days after President Donald Trump said last week the company agreed to use real cane sugar in the U.S.
Rival PepsiCo (PEP.O), opens new tab, which topped quarterly earnings estimates last week, also said it would use sugar in its products if consumers want it.
Coca-Cola's comparable revenue rose 2.5% to $12.62 billion in the three months ended June 27, beating estimates of $12.54 billion, according to data compiled by LSEG.
"Amid a shifting external landscape in the second quarter, the ability of our system to stay both focused and flexible enabled us to stay on course in the first half of the year," CEO James Quincey said in a statement.
On Tuesday, the Sprite parent said the hit to its costs due to "global trade dynamics" remained manageable, as its operations were primarily local.
Coca-Cola has said it would look at affordable packaging options such as plastic bottles when President Trump imposed a 25% duty on aluminum imports. As of June, tariffs on aluminum imports have doubled to 50%.
Prices rose 6% overall in the second quarter, led by increases in some inflationary markets, the company said, following a 5% rise in the prior quarter.
Meanwhile, total case volumes fell about 1%, compared with a 2% rise in the preceding three-month period.
Coca-Cola Zero Sugar jumped 14%, driven by growth across all geographies.
Excluding items, the company earned 87 cents per share, beating estimates of 83 cents.
Coca-Cola now expects fiscal 2025 comparable earnings per share to increase near the top end of its prior target of a 2% to 3% rise.
The Minute Maid maker's shares were last down 1% in choppy premarket trading. They have risen 12.5% so far this year.
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