The Coca-Cola Company Reports First Quarter 2013 Results

April 19, 2013

The Coca-Cola Company Reports First Quarter 2013 Results

ATLANTA, April 16, 2013 – The Coca-Cola Company today reported first quarter 2013 results.  Muhtar Kent, Chairman and Chief Executive Officer of The Coca-Cola Company said, "I am pleased with our first quarter performance results, having once again delivered solid growth against the backdrop of a still uncertain global economy.  Guided by our 2020 Vision, our roadmap for winning together with our global system bottling partners, we enter 2013 and the fourth year of our journey to 2020 focused and on track to reach our goals.  

"Together, we are working to unlock value, to execute with excellence and to keep winning volume and value share.  We proudly serve more than 500 brands through 23 million retail customer outlets each week, providing consumers a wide array of choices in package sizes, sweeteners and beverages – including more than 800 low- and no-calorie options.  Our focus each and every day is to refresh the world, inspire moments of optimism and happiness, create value and make a meaningful difference.  I am proud of all we are achieving alongside our customers, bottlers and other partners. Even so, we remain constructively discontent as we seek to make the most of the vast growth opportunities we continue to see around the world."

PERFORMANCE HIGHLIGHTS

The Coca-Cola Company reported worldwide volume growth of 4% for the first quarter, with 3% growth in Coca-Cola Americas and 5% growth in Coca-Cola International.  The Company reported solid volume growth in key developed markets, including Germany (+3%), North America (+1%) and Japan (+1%).  Europe volume was even for the first quarter and a sequential improvement from fourth quarter 2012, despite ongoing uncertain macroeconomic conditions and unseasonably cold weather.  The Company also delivered strong volume growth during the quarter in key emerging markets, including Thailand (+18%), India (+8%), Russia (+8%), Mexico (+3%) and Brazil (+3%).  Our China business delivered 1% volume growth in the quarter, a sequential improvement from fourth quarter 2012, despite the economic slowdown and poor weather in the quarter.  Strong volume growth continued in countries with per capita consumption of Company brands less than 150 eight-ounce servings per year, with volume up 7% in the quarter overall, reflecting the strength of our geographic portfolio, with our products sold in more than 200 countries worldwide.

We grew value share in nonalcoholic ready-to-drink (NARTD) beverages for the 23rd consecutive quarter and we maintained global volume share in the quarter.  Importantly, value share growth once again outperformed volume share.  Further, our immediate consumption (IC) volume grew 3% globally in the first quarter, with sparkling IC volume up 2% and still IC volume up 3%, driven by focused in-store activation efforts and continued cold-drink equipment expansion, building on the 1.3 million units placed in 2012.

Worldwide sparkling beverage volume grew 3% for the quarter.  We grew volume and value share in global core sparkling beverages in the quarter, led once again by brand Coca-Cola, as we activated our "Crazy for Good" marketing campaign in many markets around the world and continued to offer consumers relevant price and package size choices as well as promotions centered on "Coke with Meals".  Worldwide brand Coca-Cola volume grew 3% for the quarter, with growth across diverse markets, including Thailand (+38%), India (+30%), Russia (+15%), China (+6%), Germany (+4%), Japan (+2%) and Brazil (+2%).  In addition, Fanta volume grew 6% and Sprite volume grew 5% for the quarter, reflecting a balanced portfolio approach to growth across the core sparkling beverage category.  Growth was driven by innovation in sweeteners and packaging and activation of global marketing campaigns in locally relevant ways such as the Fanta "Play" campaign and the Sprite "Uncontainable Game" NBA partnership.  

Worldwide still beverage volume grew 6% in the quarter, with volume growth across most beverage categories, including ready-to-drink tea, juices and juice drinks, packaged water, energy drinks and sports drinks.  Excluding the impact of acquired volume, primarily from the Aujan partnership in the Eurasia and Africa Group, still beverage volume grew 4% in the quarter.  We grew global volume and value share in still beverages and realized volume and value share gains in juices and juice drinks, ready-to-drink tea, and packaged water.

Ready-to-drink tea volume grew double digits in the quarter, with continued strong performance of key brands such as Gold Peak and Honest Tea in North America, Ayataka green tea in Japan and Fuze Tea, which we expanded across multiple markets worldwide during the quarter.  Juices and juice drinks volume grew 9% in the quarter, with growth across all of our geographic operating groups as we continue to introduce a common visual identity across our portfolio of juice brands around the world.  Energy drinks volume also grew 9% in the quarter.  Packaged water volume grew 1% in the quarter, as we strengthened our focus on innovative and sustainable immediate consumption packaging to grow value in the category.  

Our two newest billion-dollar brands, I LOHAS single-serve water and Ayataka premium green tea, both in Japan, grew 22% and 13%, respectively, in the quarter, as we build on our strong history of brand innovation to capture growth opportunities across beverage categories and occasions in this important market.  The Company now has 16 billion-dollar brands.

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