Coca-Cola: Fairlife, Fruit Juice Are Bright Spots In North America

Coca-Cola sees inflationary pressure as a “mixed bag” in North America—akin to the performance of its product portfolio.

While net operating revenue rose 9% to $3.9 billion in Q1 ended March 31, operating income declined 2%, to a total of $1 billion.

Unit case volume growth in sparkling soft drinks, juice, value-added dairy and plant-based beverages was offset by a decline in water, sports beverages, coffee and tea.

After several quarters of implementing price hikes, Coca-Cola foresees inflationary pressure moderating going forward.

“In North America, the picture is a mixed bag, with unemployment low, gas prices improved and savings holding up—but inflation and higher mortgage rates are top-of-mind concerns for many consumers,” chairman and CEO James Quincey said on an earnings call yesterday.



One of the biggest bright spots for the company is the performance of premium, high-protein Fairlife milk, which became a $1 billion brand in 2022 and has seen double-digit volume growth for eight consecutive years.

Most recently, the lactose-free Fairlife Nutrition Plan shake was launched in the club-store channel. “We're planning to expand the product for more channels and packages in the coming months,” said Quincey.

In the juice category, Coca-Cola expanded the Simply brand into the mixer segment in January with Simply Mixology—three flavor variations positioned for mixing cocktails or mocktails at home.

Last week, the company announced its first licensing agreement for fresh produce.

Global fruit marketer Frutura’s California-based Dayka & Hackett—which grows, packages and distributes premium fruit—will use the name Simply Select on fresh citrus products and Minute Maid on grapes.

Beverages BodyArmor and Powerade remain soft spots, according to Quincey.

“We've talked about how we need to stabilize and reinvigorate BodyArmor in tandem with Powerade.”

As previously reported, in March BodyArmor launched its largest-ever campaign in a partnership with Jennifer Lopez for a Lyte iteration—in the same month that Powerade’s planned partnership with NBA basketball player Ja Morant went off the rails after he posted a social media video of himself with a gun.

Today BodyArmor said that former Alabama Crimson Tide quarterback Bryce Young is the brand’s newest athlete partner.

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