Coca-Cola struggles as global sales volumes drop despite better earnings

In the second quarter of 2025, Coca-Cola experienced a significant drop in its global case volumes, which fell by 1%. This decline was attributed largely to weaker sales in Latin America, indicating challenges in that regional market. Despite the drop in volume, Coca-Cola was able to report better-than-expected earnings, largely due to a 6% increase in pricing during the April-June period. The company's revenue rose slightly, reaching $12.5 billion, in line with Wall Street's expectations. Furthermore, Coca-Cola reported a remarkable 58% increase in net income, which totaled $3.8 billion for the quarter. Adjusted net income was 87 cents per share, surpassing analysts' forecasts of 83 cents. The beverage leader indicated expectations for an 8% growth in adjusted earnings for the full year, despite initially projecting a higher range earlier in the year. This growth estimate comes after previous downward adjustments to earnings expectations, reflecting market fluctuations. Coca-Cola's product lineup displayed varying performance metrics. Notably, Coca-Cola Zero Sugar saw a 14% growth in volumes, showing a shift in consumer preference towards zero-sugar products. However, traditional Coca-Cola remains the preferred option among consumers, suggesting a strong brand presence exists despite the trend. Overall, the performance of juice, dairy, and plant-based beverages saw a 4% decline, while sports drinks decreased by 3%, reflecting mixed performance across categories and regions. The spread between traditional sugary drinks and healthier alternatives indicates a growing challenge for Coca-Cola as consumer habits continue to evolve. Additionally, President Donald Trump's recent claim about the company switching to real cane sugar instead of high-fructose corn syrup sparked speculation, which Coca-Cola has not yet confirmed, hinting at upcoming changes in product formulation. All these factors contribute to a complex landscape as Coca-Cola navigates challenges in volume while managing to increase revenues through effective pricing strategies.