Coke backs new lines

COCA-COLA Amatil says new products will boost performance in the second half of 2017 after its first-half profit dropped 29 per cent because of weaker soft drink and water sales.

The company launched Coca-Cola No Sugar and Keri Juice Blenders in June in a bid to lift an Australian beverages division been hurt by increasing competition and discounting.

Sales volumes in the company’s largest division in the six months to June were down 3.9 per cent from a year earlier, revenue fell 5.1 per cent and underlying earnings dropped 13 per cent.

Managing director Alison Watkins said challenges remained, but drinks sales in Australia improved after Easter.

The company’s interim net profit of $140.1 million was down from $198.2 million a year ago. – it expects its fullyear underlying profit will be in line with the previous year’s $418 million.

The company’s shares yesterday fell 2.6 per cent to $8.25.