Hated Hydration Breaks Allow Coke To Take FIFA Victory Lap

Coca-Cola did not just report better second-quarter numbers than observers expected -- it lifted the hood on campaign performance.

The long-time FIFA sponsor revealed that the quarter's marketing around the World Cup did not just rack up impressions (60 billion), views (9 billion) or data (info on more than 25 million consumers who interacted with packaging) -- it also increased sales.

By volume, sales for Coca-Cola -- the official soft drink of the tournament -- gained 5% for the quarter, with Powerade rising 8%.

Overall, Coca-Cola claims that it is the #1 brand by share of voice during the tournament, with Powerade engagement hitting records.

Reuters notes that the tournament's much-derided hydration breaks -- three minutes in each half -- played a key role, creating ad opportunities for brands like Coke and a revenue bonanza for media platforms, including Fox.

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The news came as a relief to the CPG industry, which has been watching nervously as consumers -- particularly middle- and lower-income shoppers -- dial back spending on food and beverage to make ends meet.

Consumers are "evaluating how they shop, what they value and what they want to put in their basket," said Henrique Braun, CEO of The Coca-Cola Company. But Coke's numbers held up -- even in North America, where volume gained 3%, reports The Wall Street Journal.

WSJ says the company will continue to woo those price-wary customers with products such as the mini can, now sold individually at convenience stores. Braun expects these conditions to continue challenging consumer spending through the rest of the year.

Product innovation also contributed to the company's overall growth, with revenue rising 7% to $13.4 billion in the quarter, as the company intensifies its quest to capture more drinking occasions.

Those include Coca-Cola Zero Zero, with zero sugar, zero calories and zero caffeine, which is moving into Asia=Pacific and Latin America following a strong reception in Europe.

Bodyarmor Fit, a sparkling sports drink, is a new functional offering.

And Chinese consumers are thirsty for Sprite+Tea, a U.S. innovation. Perhaps more tantalizing? The company confirmed that it registered Spricy as a trademark earlier this month, according to Food Dive, getting fans speculating that despite the flameout of Coca-Cola Spiced last year, there may be something heating up in the Sprite division.

Other standouts for the quarter include Diet Coke/Coca-Cola Light, which grew 7% on strong North America demand.

Meanwhile, the company's Fairlife dairy division is back in business after a ransomware demand from hackers forced Coke to shut down operations at four facilities. CBS News reports that Coke does not expect the shutdown to impact the division's sales.

 

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