Sales dropped at Coca-Cola on weak demand for its soft drinks in Europe, and a strong dollar that hurt revenue in other global markets. Bobbi Rebell reports.
No top-line growth at Coca-Cola. Sales fell for the fourth straight quarter- though overall results were better than forecasts. Demand for the company's fizzy drinks fell in Europe, and the strong dollar hurt profits in markets outside the United States, including Latin America.
Coca-Cola and rival Pepsi have both been hurt as their customers focus more on teas, fruit juices and smoothies, with more of a focus on being health-conscious.
In her first take note on the results, Vivien Azer at Cowen and Company writing quote:
"The global beverage industry is subject to a number of potential headwinds. For alcoholic beverages, heightened regulation and taxation are key risks. For nonalcoholic beverages, declining consumption, in particular for carbonated soft drinks, represents a key headwind."
Coca-Cola shares, which had risen about 15 percent in the last 12 months, traded lower on the news.