Coca-Cola posts 6% revenue growth driven by premium drinks, mini cans 

USA – The Coca-Cola Company reported a 6% increase in organic revenue for the third quarter, boosted by strong demand for premium beverages and smaller packaging sizes, despite subdued consumer spending in the United States and other markets. 

The Atlanta-based beverage giant said on Tuesday that it continues to observe contrasting consumer behavior across regions. In North America and Europe, higher-income consumers are purchasing premium brands such as Smartwater, Topo Chico, and Fairlife, while lower-income consumers face greater financial strain, limiting overall demand. 

Coca-Cola’s Chief Operating Officer Henrique Braun noted that the company has prioritized affordability by introducing smaller packaging options. Earlier this month, the company announced plans to sell individual 7.5-ounce mini cans in North American convenience stores starting January 1, 2026, priced at US$1.29 each.  

“We’re pivoting accordingly. We know that the consumer landscape has not changed,” Braun said during a call with investors. 

For the July to September period, Coca-Cola’s organic revenue rose 6% to $12.41 billion, aligning with Wall Street expectations, according to FactSet data. Unit case volumes increased 1% globally, reversing a 1% decline recorded in the second quarter.  

Case volumes remained flat in North and Latin America, fell 1% in Asia, but rose 4% in the Europe, Middle East, and Africa region. The company reported a 6% increase in average pricing, partly due to a higher mix of premium beverages. 

Coca-Cola Zero Sugar was the top-performing brand in the quarter, with global unit case volumes up 14%, while Diet Coke and Coca-Cola Light saw a 2% increase. Volumes for water, sports drinks, coffee, and tea rose 3%, whereas juice and dairy products recorded a 3% decline. 

Coca-Cola reaffirmed its full-year guidance, maintaining forecasts of 5% to 6% organic revenue growth and 3% adjusted earnings-per-share growth. The company also said it expects tariff impacts to remain “manageable.” 

Separately, Coca-Cola announced a major corporate restructuring involving its African operations. The company and Gutsche Family Investments have agreed to sell a 75% controlling stake in Coca-Cola Beverages Africa (CCBA) to Coca-Cola HBC AG, a Swiss-based bottler, for US$2.55 billion.  

Coca-Cola will retain a 25% stake in CCBA, with the transaction expected to close by the end of 2026. 

CCBA is the continent’s largest bottler, operating in 14 countries and accounting for 40% of Coca-Cola’s product volume in Africa.  

CEO James Quincey stated that the deal marks the completion of a decade-long refranchising strategy aimed at allowing Coke to focus on brand building while enabling bottlers to enhance operational efficiency and profitability. 

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