Coca-Cola Co. reported a mixed set of results for the first quarter ended March 28, 2025, as global momentum was tempered by a notable volume decline in its crucial North American market.
While the company’s net income rose 5% to $3.33 billion and global unit case volume increased 2%-driven by strong performances in India, China, and Brazil-North America saw a 2% drop in volume, reflecting broader shifts in consumer sentiment and market dynamics.
The volume decline in North America was primarily attributed to reduced demand for the flagship Coca-Cola brand as well as water, sports drinks, coffee, and tea beverages. Company executives pointed to weakening consumer sentiment, especially among Hispanic consumers, as a key factor.
The quarter was also marked by external challenges, including severe weather, a calendar shift, and the lingering impact of misleading social media videos that falsely claimed Coca-Cola had reported Latino workers to US immigration authorities.
CEO James Quincey acknowledged the reputational hit, noting that the company is actively working to win back Hispanic consumers through targeted marketing and affordability initiatives.
Despite the volume pressure, Coca-Cola’s North American net operating revenues increased 3% to $4.36 billion, supported by an 8% rise in price/mix due to pricing actions and a favorable product mix. The company also highlighted growth in Coca-Cola Zero Sugar, Fairlife, and Topo Chico Sabores, as well as continued momentum in food service channels.
Companywide, sparkling soft drink volume rose 2%, with trademark Coca-Cola up 1% and Coca-Cola Zero Sugar surging 14%. Growth in sparkling flavors and value-added dairy and plant-based beverages was led by Asia Pacific markets.
Looking ahead, Coca-Cola maintained its full-year guidance for 2025, projecting organic revenue growth of 5% to 6%. Management emphasized that while the company’s operations are primarily local and less exposed to global trade disruptions, it remains vigilant about potential cost pressures from tariffs and commodity price volatility.
In summary, while Coca-Cola continues to show resilience globally, the North American volume decline underscores the importance of adapting to evolving consumer preferences and addressing reputational challenges in key markets.
The company’s focus on innovation, targeted marketing, and value-driven offerings will be critical as it seeks to regain momentum in its largest and most profitable region.