Coca-Cola reports demand gains but warns 2026 growth may stay modest
Coca-Cola said demand improved in the fourth quarter, with global unit case volumes rising 1% for the October-December period, led by the U.S., Japan and Brazil. The Atlanta company also reported unit case volume growth of 1% in North America, reversing several quarters of flat or declining sales.
Despite the volume increases, investors reacted to what Coca-Cola described as a tepid outlook. Coca-Cola’s fourth-quarter net revenue came in lower than expected, and the company projected organic revenue growth of 4% to 5% in 2026, compared with analysts’ expectations that it would be closer to last year’s 5% organic revenue growth.
Coca-Cola also pointed to pricing actions taken during the quarter. The company said it hiked prices 4% in North America and 1% globally, while it lowered prices in some European and Asian markets as part of an effort to boost demand.
Company officials said the market environment could remain challenging in part because of government moves to curb sugary drink consumption. In Mexico, the company said a tax on sugary drinks went into effect Jan. 1, while in the U.S. several states have begun limiting which foods can be purchased with federal Supplemental Nutrition Assistance Program, or SNAP, benefits.
Coca-Cola said those SNAP waivers could restrict what consumers buy with benefits, but Chairman and CEO James Quincey said in a conference call with investors that the company expects the changes to be manageable. Quincey said, “Clearly, we think that, consumers should be allowed to choose, but regulation is regulation,” and that the regulation “puts the challenge on us to give them the category, the beverage, the brand, the pack size, the price point that works for them.”
Coca-Cola also outlined steps aimed at affordability and product mix. The company said it introduced 7.5-ounce mini cans for the first time at North American convenience stores during the quarter. It also said Coca-Cola Zero Sugar was a strong performer in the fourth quarter, with sales up 13% globally, while it reported that juices and dairy products faltered.
In earnings figures, Coca-Cola said revenue rose 2% to $11.8 billion for the October-December period, falling short of Wall Street’s expectations. The company also said net income rose 3% to $2.3 billion, and that adjusted earnings came to 58 cents per share, or 2 cents better than Wall Street had expected, according to FactSet estimates cited by the company.
Coca-Cola said it is also making changes to its portfolio in the U.S. It said it would discontinue Minute Maid frozen canned juice sales after 80 years due to declining sales. The company did not indicate whether those changes were linked to the quarterly revenue miss, but it presented them as part of ongoing efforts to adapt to shifting demand.
Leadership at Coca-Cola is also changing. Henrique Braun, the company’s chief operating officer and a 30-year veteran, will become CEO on March 31, and Quincey will then become executive chairman. Braun said he plans to increase Coca-Cola’s focus on innovation and on finding locally popular brands to invest in and expand globally, citing Santa Clara, a Mexican dairy brand the company purchased in 2012, as an example that has become a billion-dollar brand.