• by Danielle Oster , April 30, 2024

Coca-Cola reported its earnings for Q1, with the global soft drink leader coming out ahead of analyst estimates. The company reported a 3% net revenue increase, and 11% organic revenue increase, for the quarter year-over-year, with the results arriving in the wake of attempts to refresh its offerings and invest in marketing new products.

On a subsequent earnings call with analysts and investors, the company credited innovation and marketing investments for its success.

Coca-Cola Chairman and CEO James Quincey touted the company’s decision to “refine the recipes for Fanta and Sprite to meet consumer preferences across many markets“ with success in reaching new customers.

“The strong performance in markets from Brazil to Germany to the U.S. this quarter is largely due to this type of innovation, which was supported by marketing messages focused on taste and on tying the brand to snacking occasions at local festivals, like Carnival in Brazil,” he explained.

“We're building on our innovations by driving awareness and excitement through an increasingly digital marketing media mix,” he added. “Our total beverage portfolio plays a lead role, as shown by the ‘New Guy’ campaign in the U.S. this quarter, which featured multiple [brands] across categories.”

Chairman and CEO James Quincey reported the company’s marketing spending was up year-over-year for the quarter.

Murphy also addressed one brand nvestors felt wasn’t living up to expectations: BodyArmor. Coca-Cola acquired full ownership of the brand in November of 2021, after initial investments beginning in 2018.

“Clearly, we haven't progressed as fast as we would like with regard to BodyArmor,” Murphy said.  “Notwithstanding that, we do see long-term value in the dual strategy, particularly in the U.S., between Powerade and BodyArmor.”

Murphy also highlighted some bright spots for that dual strategy, contributing to the company’s more positive long-term outlook for the category. He said the company is “off to a good start” with its plans for BodyArmor going forward, claiming the zero-calorie version of BodyArmor “is ahead of expectations,” while pointing to Flash IDV having “some double-digit [market] share.”

BodyArmor recently partnered with Olivia Culpo on a campaign dedicated to the BodyArmor Zero Sugar release, following its launch earlier this year.