Coke follows the lead of rival PepsiCo
Coke’s prices were up 10% in the second quarter compared with the year-ago period.
Customers in the U.S. and Europe are switching to private label bottled water and juices, Coke CEO James Quincey said Wednesday on the company’s conference call. The company reported that U.S. unit case volume fell 1% in the second quarter.
“Across the sector, consumers are increasingly cost conscientious. They are looking for value and stocking up on items on sale,” Quincey said.
Coke plans to keep raising prices in line with inflation in developing markets like Latin America.
Pepsi has seen even steeper declines in demand than Coke. The Frito-Lay owner reported that its North American beverage volume tumbled 4.5% in the second quarter. Its Quaker Foods North America unit’s volume fell 5%. Frito-Lay North America was the only bright spot, reporting 1% volume growth, thanks to consumers’ enduring snack habits.