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Coca-Cola

Coca-Cola profits slip despite World Cup and Share a Coke marketing drives

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By Natalie Mortimer, N/A

July 22, 2014 | 3 min read

Coca-Cola’s recent marketing drives around the World Cup and Share a Coke have failed to lift the drinks giant’s profit and revenue, after it reported a 1 per cent decline in net revenues for the second quarter.

Coca-Cola reported a 3 per cent slip in revenue during the first half of 2014, with net income totalling $2.6bn – down 3 per cent from the previous year.

Despite this, Worldwide sparkling volume growth accelerated to 2 per cent in the quarter, with brand Coca-Cola up 1 per cent both globally and in North America.

The brand said it was hit by unfavourable currency exchange rates and slow juice drink sales in North America, which saw lower volume due to significant price increases taken to cover higher commodity costs. Diet Coke too suffered from flat sales.

In China sparkling beverage volume was up 10 per cent accredited to the brands Share a Coke campaign which re-launched last month.

Coca-Cola said sales in Europe, which had a challenging first quarter, were driven in Q2 as a result of strong activation around the Fifa World Cup.

Muhtar Kent, chairman and chief executive of The Coca-Cola Company said: “At the beginning of this year, we shared our strategic plan to restore the momentum of our global business. As we now reach the midpoint of the year, we have delivered sound financial performance year to date and demonstrated sequential improvement in our global volume growth.

"While I am pleased with our progress to date, we remain focused on the work required to return our business to the level of sustainable growth we and our shareowners expect. For the remainder of the year, we will continue to focus intently on our five strategic priorities in order to deliver quality results and further advance our progress toward achieving our 2020 Vision.”

Worldwide brand Coca-Cola volume grew 1 per cent in the quarter with Sprite up 6 per cent and Fanta up 2 per cent, reflecting balanced growth across its sparkling beverage portfolio.

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