In this article

A pedestrian passes a Coca-Cola delivery truck in Mexico City, Mexico, on Wednesday, Jan. 25, 2023.
Jeoffrey Guillemard | Bloomberg | Getty Images

For two years, Coca-Cola has been raising prices on its drinks to combat higher costs. But the company said Wednesday it’s done hiking prices this year in developed markets like the U.S. and Europe.

Coke follows the lead of rival PepsiCo, which said in February it wouldn’t raise prices beyond its usual hike for beverages in the fourth quarter. Both companies have reported strong sales growth thanks to higher prices, but consumer demand has weakened, although not as much as expected.

Coke’s prices were up 10% in the second quarter compared with the year-ago period.

Customers in the U.S. and Europe are switching to private label bottled water and juices, Coke CEO James Quincey said Wednesday on the company’s conference call. The company reported that U.S. unit case volume fell 1% in the second quarter.

“Across the sector, consumers are increasingly cost conscientious. They are looking for value and stocking up on items on sale,” Quincey said.

Coke plans to keep raising prices in line with inflation in developing markets like Latin America.

Pepsi has seen even steeper declines in demand than Coke. The Frito-Lay owner reported that its North American beverage volume tumbled 4.5% in the second quarter. Its Quaker Foods North America unit’s volume fell 5%. Frito-Lay North America was the only bright spot, reporting 1% volume growth, thanks to consumers’ enduring snack habits.

Coke shares fell less than 1% in morning trading, despite the company raising its full-year outlook and reporting earnings and revenue that topped Wall Streeet estimates.

You May Also Like

Boycotts rarely work — but anti-LGBTQ+ backlash is forcing companies into tough choices

In this article ABI-BE TGT Follow your favorite stocksCREATE FREE ACCOUNT Illustration…
Amazing time to invest in cutting-edge tech including AI

Amazing time to invest in cutting-edge tech including AI

ARK Invest is betting big on private tech companies. “It’s an amazing…

Here are the states voting on marijuana legalization on Election Day

A recreational marijuana smoker indulges in smoking weed on April 14, 2020…

No-fly zones, canceled flights: How Russia’s invasion of Ukraine is disrupting air travel

One of the five Ukrainian Boeign 737-800 aircraft that landed yesterday at…