It's a Bad Day for Coke
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People across the globe are drinking less soda overall these days. That's good news for our health, but bad for Coca-Cola's bottom line: The beverage giant missed revenue expectations for the quarter, even though Americans are actually drinking a tad more of the sweet stuff.
While Coke's North American sales ticked up by 2%, the New York Times reports, economic conditions in other places like Latin America and China led to shrinking sales in many other parts of the world. The strong U.S. dollar also hurt Coke's financial results.
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The fact that Americans are paying more for soda helped, though. The Wall Street Journal pointed out that the company's strategy of selling smaller bottles and cans of soda while keeping prices the same or a bit higher in the United States helped it earn more money even though volume only grew a tiny 1%. By volume, the Journal reported that Coke's flagship soda didn't sell as well, while sales of other brands like Fanta and Sprite increased, as did energy drinks.
As Americans increasingly quench their thirst with tea, bottled water, juice and other beverages, sales of traditional carbonated beverages have been in a long, slow decline, prompting companies like Coca-Cola along with top rival PepsiCo, to look at other categories for growth.