Coca-Cola reported higher profits today following a stronger soda performance in its home North American market, where it recently enacted price increases due partly to US tariffs on aluminum.
Net profit at the soda giant jumped 69 per cent to USD 2.3 billion following lower tax expenses.
Revenues fell 12 per cent following the sale of bottling assets to franchisees.
Results were boosted in North America after Coca-Cola revamped its Coke Zero brand and introduced new flavours of Diet Coke, as well as smaller package sizes of soda and other beverages.
The moves were in response to eroding consumer demand for conventional carbonated drinks due to health and obesity concerns in the US and other markets.
"Consumers are buying more beverages but they are buying it because of diversity," chief executive James Quincey said on a conference call.
Sparkling soft drink volumes rose one percent in the quarter in North America.
But the region has been hit by higher costs across its supply chain, from higher freight expenses, to elevated plastics prices to higher costs for cans due to US tariffs on aluminum, executives said.
The higher costs prompted Coca-Cola to hike prices in North America in the middle of the year, which is not normally when hikes take effect, executives said.
Executives said they expected currency pressures in overseas markets in the second half of 2018 because of the strengthening dollar.
"Global economic growth remains robust," Quincey said. "Of course, there is some level of uncertainty from geopolitical risk and escalating trade conflicts but our industry remains vibrant and growing."
Shares of Coca-Cola rose 2.4 per cent in late-morning trading to USD 46.
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