From CNBC:

Coca-Cola CEO James Quincey stated on “Squawk Box” that inflation is easing in most markets, reducing the need for the company to rely on price hikes for increased revenue. Despite 9% price increases in the fourth quarter, the majority of Coke’s markets only saw a 3.5% rise in prices. In the US, the consumer price index rose 3.1% in January compared to the previous year.

Coke reported higher prices helped the company beat Wall Street’s estimates for quarterly sales, but price hikes have slowed from previous double-digit increases. Inflation is moderating in most markets which has impacted Coke’s prices and the demand for its brands. The company also reported a 1% shrink in North American volume in the quarter, and its shares fell slightly in morning trading.

Coca-Cola CEO James Quincey also mentioned that consumers in Europe and the U.S. are switching to cheaper private-label juices and bottled water instead of buying Coke’s Simply and Smartwater brands. Those with more disposable income are buying premium drinks, such as Fairlife milk, while those with tighter budgets are pulling back and buying more value packs. This has resulted in a 1% shrink in Coke’s North American volume.



Read more: CEO says inflation is moderating in most markets