2 Coca Cola's primary challenge , Not the vitality forest

source ： Capital detective （ID：deep_insights） author ： Xiao Zhuo

Another uncertain earnings season for US stocks .“ The king of retail ” Wal Mart lowered its profit guidelines , With retail stocks falling collectively ; McDonald's earnings exceeded expectations, but its revenue was poor ; Technology giants Google and Microsoft also performed worse than expected .

But Buffett's favorite “ Happy water ” Still strong .

7 month 26 Japan , Coca Cola released 2022 Second quarter results of . Results show that ：

The company's revenue in the second quarter was 113.25 Billion dollars , Year-on-year growth 12%, Exceeding market expectations 105.7 Billion dollars ;

The operating profit is 23.41 Billion dollars ; Net income of 19.00 Billion dollars ;

Adjusted earnings per share are 0.70 dollar , Year-on-year growth 4%, Higher than the market expected 0.67 dollar .

While the performance is higher than expected , Coca Cola also updated its annual performance guidelines ： The company's annual expected endogenous revenue （organic revenue） Will grow 12% to 13%, Its previous guidance range was growth 7% to 8%. As of the close of the US stock market , The three major stock indexes all fell to varying degrees , Coca Cola's share price rose against the trend 1.64%.

01

Drink even if the price rises “ Happy water ”

Inflation is the key factor affecting the performance of enterprises in the second quarter . To hedge against higher freight 、 High fructose corn syrup and aluminum costs , Coca Cola raised the price of some products , But consumers are interested in “ Happy water ” Demand for remains strong .

According to the results , The second quarter of this year , Coca Cola's global single case sales increased year-on-year 8%, Sales performance is mainly affected by “ Non household businesses continue to recover ” Push forward . Before the pandemic , About half of Coca Cola's revenue comes from outdoor activities , For example, in the cinema 、 The restaurant 、 Buy soda in theme park .

Specific to the sales of single cases in each regional market , Results show that ：

The European 、 Single case sales in the Middle East and Africa have increased 6%, Mainly thanks to Western Europe 、 Strong growth in Turkey and Pakistan ;

Single case sales in Latin America have increased 9%, Growth from Mexico 、 Brazil and Argentina lead ;

Single case sales in North America increased 2%, Mainly benefited from the performance of non family channels , Sparkling soft drinks and dairy beverages led growth this quarter ;

Single case sales in Asia Pacific increased 11%, The growth is mainly driven by demand from India and the Philippines , Partly offset by the resurgence of the epidemic in the Chinese market .

CEO of Coca Cola James Quincey Thanks to “ Business flexibility 、 Advantages after further optimization of brand portfolio , And the effective strategies adopted by the company to achieve business growth under the influence of operation and macro-economy ”.

however , On the financial report call ,James Quincey Also said , At present, it is difficult to clearly understand consumers , There are early signs that , Low income buyers are buying cheaper products from convenience stores or grocery stores , But in places like baseball fields and theme parks , The demand for tourism and leisure is very strong .

02

Who is the YYDS？

As a global beverage giant , Coca Cola is facing big inflation 、 When facing multiple challenges such as geographical conflicts and epidemics, they still deliver reliable performance , It shows the competitiveness of the company .

The capital market also maintains confidence in Coca Cola . Morgan Stanley said recently , Beverage companies are probably one of the safest investments for investors , Mainly due to the pricing power of the industry 、 Recovery after the epidemic and benign competition in the industry . Morgan Stanley thinks , In general, the pricing power of beverage companies is significantly better than that of FMCG peers , And give Coca Cola 、 Pepsi Cola, etc “ purchase ” The rating .

however , Even if the strength is strong , Coca Cola will still have challengers , For example, the vigorous forest with fierce momentum in recent years .

According to several media reports , Yuanqi forest plans to launch a sugar free cola drink , The internal code of the project “YYDS”, This means that vitality forest will compete with Coca Cola 、 Pepsi's flagship products compete head-on .

Despite the news that , Vitality forest is not intentional and “ Two music ” Giants compete in an all-round way , But the company has entered the scope of the giant's defense . According to Sina Technology, this year 2 Monthly report ,“ Both sides have had meetings , Make up your mind to work in the forest .”

What keeps the giant on guard is , A new player who rises strongly with sugar free bubble , It may shape young people's new consumption cognition . stay “ Seize the young market ” In this matter , Giants have made frequent moves this year .

This year, 2 month , Coca Cola announced the launch of its limited edition product Coca Cola “ Star River Walk ”, This is Coca Cola's new creative platform “ Le Chuang is boundless ” First product released , This product introduces AR Interactive experience , Has been in 3 Landing in the Chinese market in August .

In addition to combining new products with innovative technologies , Coca Cola company is “ Sugar free ” The investment in is also continuing , It as a “ Sprite ” Expand the sugar free product line , The company's brand COSTA To launch the COSTA Light milk tea series also take “ Low sugar and fat ” As a selling point .

“ Young people ” It is the breakthrough of new brand , It is also a must for classic brands to maintain their advantages , Especially in the Chinese market, where the consumption trend changes from time to time . While coping with the multiple challenges of the global environment , Coca Cola also has a tough battle to fight in the Chinese market , This battle is not only about sales , And the future of brands related to consumer intelligence .