Coca-Cola unveils revamped diet cola in US as Q2 earnings drop

NEW YORK: Coca-Cola announced plans to launch a revamped “Coke Zero” in the United States as it expands offerings of low-sugar and non-carbonated beverages amid flagging demand for sweet sodas.

The soda, “Coke-Cola Zero Sugar,” which is already on the market in much of Europe and Latin America, will be available in the US starting in August. The launch comes at a time when more cities around the US have enacted, or are weighing, soda taxes.

Coca-Cola announced the plan as it reported a 60 per cent drop in second-quarter profits to $1.4 billion and a 16 per cent decline in revenues to $9.7 billion. Both were hit by the company’s move to offload bottling assets in North America as it leans away from its traditional soda offerings.

Sales volume grew for three of the four beverage categories: juice, dairy and plant-based beverages; water, enhanced water and sports drinks; and tea and coffee.

But volumes were flat in sparkling drinks.

The results translated into 59 cents per share, a penny above analyst expectations.

Chief executive James Quincey said Coca-Cola’s efforts to meet consumer demand for non-sweet and healthier offerings were on track as it transforms itself into a “total beverage company.”

In addition to scoring increased sales of Coca-Cola Zero Sugar in Europe, Latin America, the Middle East and Africa, the company has launched new orange juice products in China and expanded its Innocent” brand of smoothies and premium juices in Western Europe.

— AFP