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Coca-Cola Q1 sales volume soars in China
Last Updated: 2014-04-16 23:18 | Global Times
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Coca-Cola's Brazil World Cup-themed cans shown in Beijing Photo: CFP

Strong sales volume growth in China helped the Coca-Cola Co beat quarterly revenue estimates as lower-priced, smaller soda bottles and juices attracted more price and health-conscious shoppers in the country, Reuters reported Wednesday.

Case volumes in China rose 12 percent in the first quarter of the year, boosted by marketing campaigns around the key Chinese Lunar New Year holiday shopping period, helping drive a global 2 percent rise in volumes.

Brazil, India and Russia also saw strong volume sales growth.

Coca-Cola has been battling falling soda sales in developed markets such as the US, where its soda sales last year were the lowest since 1995.

Analysts said a focus on smaller, lower priced products in China was helping target consumers in fast-growing smaller cities, where demand is outstripping larger urban centers.

"Our newly architected packaging portfolio in China is really working with the smaller packs and the new price points," Coca-Cola Chairman and CEO Muhtar Kent said on an earnings call after the results.

A greater focus on health among Chinese consumers also increased sales volumes of Coca-Cola's Minute Maid Pulpy juice drink brand by 8 percent in the period.

Analysts cautioned the strong China results were partly due to weak growth in the first quarter of last year, when volumes were up just 1 percent due to a slowing economy and rising competition from local rivals.

Coca-Cola is looking to leverage this year's soccer World Cup to be held in Brazil, where it is a key sponsor, to help revive soda sales which fell 1 percent globally.

A World Cup-linked campaign has already helped the Brazil and China markets, the firm said in a statement.

Coca-Cola, which plans to invest $8 billion in China in the five years to 2017, accounted for 16 percent of the soft drinks market in 2012.

The sector is worth an estimated 487.4 billion yuan ($78.33 billion) this year, according to consultants Euromonitor.

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