According to The Wall Street Journal, Coca-Cola Co. said it believes the biggest challenges of the pandemic are behind it, despite the current surge in coronavirus cases in many parts of the United States. About half of Coca-Cola’s business comes from away-from-home venues, which were shut around the world during the second quarter because of the pandemic.
Coca-Cola said revenue fell 28% to $7.15 billion for the quarter that ended June 26, down from $10 billion a year earlier. Organic revenue, which excludes the effects of currency swings, acquisitions, and divestitures, dropped 26%. For the quarter, Coca-Cola recorded earnings of $1.78 billion, down from $2.61 billion in the comparable quarter last year.
The company’s sales improved in May and June as shelter-in-place measures eased around the world. Latin America and Africa still present the greatest amount of uncertainty, John Murphy, Coca-Cola’s finance chief, told the Journal.
Coca-Cola’s Fairlife milk and Simply orange juice brands have sold well during the pandemic as people have eaten more at home. The company’s biggest soda brands—including Coke, Coke Zero Sugar, and Sprite—have sold well in grocery stores but have taken a hit from a steep drop-off in soda fountain sales.
The soda giant is shifting marketing spending to its biggest brands and during the pandemic has pulled the plug on small R&D projects, according to Murphy.