Coca-Cola
IPO Is Still On The Cards For Coke’s African Bottling Business
Coca-Cola’s Africa bottling business is being valued at around US$8 billion ahead of its IPO, which could be as early as 2025. Coca-Cola has not commented on the timing or valuation. Coca-Cola mentioned in 2021 plans to list Coca-Cola Beverages Africa within 18 months. In 2022, it delayed plans on the grounds of market turbulence caused by the Russian invasion of Ukraine, and last year it reiterated its commitment to list it once conditions became more favorable.
Volumes Lag For Coca-Cola But It Retained Pricing Power In Q1 2024, Raised Full-Year Outlook
Following its first quarter results, Coca-Cola provided a more optimistic organic sales growth forecast of 8-9 percent, up from an earlier 6-7 percent outlook. Organic revenue growth in the quarter was 15 percent in Europe, Middle East and Africa, and 7 percent in the US. Average selling price was up 13 percent but unit case volumes grew only 1 percent. CEO James Quincey said the US remains in “good shape", but highlighted compression in low-income customers’ purchasing power. Net revenue was up 2.5 percent to $11.23 billion. Adjusted profit was 72c per share, ahead of analyst expectations of 70c.
Keurig Dr Pepper
KDP Posted Organic Growth In Q1 2024, But Pricing Did All The Work
Keurig Dr Pepper posted first quarter sales and profit ahead of analyst expectations, buoyed by demand for high-priced sodas, including 7UP and Sun Drop citrus soda, as well as Schweppes tonic water. Pricing over recent quarters has helped KDP protect overall margins from rising coffee costs. Price contributed 3.1 percent growth, but volume/mix was down 0.3 percent. Adjusted profit was 38c per share compared with analyst estimates of 35c. KDP reaffirmed its full-year sales and profit forecast.
Nestle
RTD Products One Of The Positive Aspects Of A Disappointing First Quarter For Nestlé
Slow sales in its coffee segment were partly to blame for Nestlé’s 6 percent drop in first quarter group revenues amid higher pricing and ‘soft consumer demand’ in North America. Nestlé did see ‘continued momentum’ for Nescafé, licensed Starbucks and ready-to-drink products globally, but especially in Europe, China and the Asia, Oceania, and Africa region. Mark Schneider, CEO, said the results were no surprise and the company expects to see a rebound in Real Internal Growth next quarter supported by group-wide growth initiatives that are beginning to pay off.
Other Companies
UK CBD-Infused Beverage Brand Launches New Functional Range
Trip, a CBD-infused beverage brand from the UK, introduced a new range called Mindful Blend, using lion’s mane, magnesium, ashwagandha and L-theanine. There are four flavors: Cucumber Mint, Blood Orange Rosemary, Elderflower Mint and Raspberry Orange Blossom. They are available in retail nationally from early May, including at Waitrose, Sainsbury’s, Holland & Barrett, Whole Foods, Co-op and Ocado. Lion’s mane delivers cognitive benefits; magnesium helps provide calming benefits; and ashwagandha helps alleviate stress.
Red Bull Adds To Its Editions Range With A Fully Sugar-Free Innovation
Red Bull Pink Edition Sugarfree, the brand’s first completely sugar-free flavor, is now available at Tesco and Booker before a broader rollout in the summer. Red Bull says it blends “raspberry and other forest fruits, complemented by exciting herbal notes of verbena.” It comes in 250ml and 355ml options and a 4x250ml pack. NIQ data show sugar-free energy drink sales up 24 percent by value in the last 12 months and 38 percent more units of flavored energy drinks sold per store compared with two years ago.
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