Coca-Cola prioritizes core brands and focuses on digital strategy

Beverage major Coca-Cola Company's business in the Chinese market improved in June as it focused on core branded products and reallocated resources to digital engagements as consumers switched to at-home consumption.

The company's second-quarter 2022 fiscal results show its global revenue went up 12 percent year-on-year to $11.33 billion,exceeding market expectations. Its operating income reached $2.34 billion and net income $1.90 billion.

James Quincey, chairman and CEO of the Coca-Cola Company, said:"... Volume was down for all months in the quarter, but the team persevered through a challenging environment, and recovery began in June as most (COVID-19 prevention) restrictions started to lift. We focused on the core, prioritized top SKUs (stock keeping unit) and reallocated resources to digital engagement, e-commerce and O2O, as consumer demand shifted to at-home consumption."

Following the launch of Coca-Cola Starlight in the first quarter, the second limited-edition product, Coca-Cola Byte, which was inspired by metaverse, was launched in China in May, to communicate with more young consumers, the company officials said.

In the meantime, multiple brands of the company launched more than 10 new products.

During this year's "June 18" e-commerce festival, on the JD platform, the Coca-Cola self-operated flagship store grew 18 percent in year-on-year sales, ranking No 1 in the nonalcoholic ready-to-drink category.

Globally, in the quarter, Coca-Cola's unit case volume grew 8 percent year-on-year, with sparkling soft drinks growing 8 percent, trademark Coca-Cola 7 percent, and Coca-Cola Zero Sugar 12 percent, driven by double-digit growth across developed, developing and emerging markets. Sparkling flavors grew 11 percent, led by Asia Pacific and other markets.

In the Asia Pacific, unit case volume grew 11 percent. The company gained value share in total nonalcoholic ready-to-drink beverages led by share gains in China, Japan and Australia, said the report.