Coca-Cola consumers are largely accepting double-digit price increases on beverages from the soft drink giant, as the company reported a 10% increase in revenue in its Q3 earnings report released earlier today.
Despite hiking prices 12% during the quarter in response to inflationary pressures, Coke’s volume also rose 4%, encouraging executives to raise its organic revenue growth outlook to 14%-15% (previously 12%-13%). Within North America, prices rose 15%.
Adjusted net sales increased 10% to $11.05 billion, while organic revenue ticked up 16%.
“Our strong capabilities and consumer insights continue to help us win in the marketplace,” said James Quincey, Coca-Cola’s Chairman and CEO, in a press release. “Our business is resilient amidst a dynamic operating and macroeconomic environment. We are investing in our strong portfolio of brands, which is a cornerstone of our ability to deliver long-term value for our stakeholders.”
Within specific categories, Coca-Cola’s hydration, sports and coffee products all posted gains. Hydration and sports drinks were each up 6%, while coffee was up 5% during the quarter. Tea was flat, as the cessation of its business in Russia offset strong numbers in Brazil and Mexico.
Elsewhere, the flagship Coca-Cola trademark grew 3%, with Coca-Cola Zero Sugar rising 11%. Sparkling flavors were up 3%. Nutrition, juice, dairy and plant-based beverages were flat.
In response to global economic conditions, Quincey said the company would look toward different packaging configurations and formats to ensure products remain affordable.
“Our focus and our confidence in our year to go and going into next year is about the momentum we’ve created in our business over the years and our ability to not just to continue with marketing and innovation, but to leverage all the thinking behind revenue growth management and the price pack promo architectures to maximize affordability, and therefore, accessibility of our categories for those consumers that are under pressure,” he said.