Coca-Cola’s profit dips on flat soda sales

NEW YORK— Coca-Cola’s first-quarter profit fell nearly 8 per cent as the world’s biggest beverage maker faced a stronger dollar and sold less soda.

But the company sold more of its noncarbonated drinks worldwide, and its earnings matched expectations.

The Atlanta-based company says global sales volume rose 2 per cent. In its flagship North American market, soda volume slipped 1per cent as the company raised prices.

Coca-Cola Co., which also makes drinks including Sprite, Powerade and Dasani, has been under pressure to deliver stronger results, particularly back at home where Americans have been cutting back on soda for years.

The company isn’t alone in its struggles to boost soda sales. PepsiCo Inc., which reports its earnings Thursday, has seen even steeper declines in its soda business despite stepped-up marketing, including sponsorship of the Super Bowl halftime show.

Both companies sell a wide array of beverages, including sports drinks, bottled water and orange juice. But sodas remain a big part of their businesses, and they’re scrambling to figure out ways to stop the declines.

“Look, we have Coca-Cola, and we have another 500 brands. The key is to offer a wide variety of choices,” CEO Muhtar Kent said in an interview on CNBC regarding the concerns about soda.

For the quarter ended March 28, net income fell to $1.62 billion (U.S.), or 36 cents per share.

That compares with net income of $1.77 billion, or 39 cents per share, a year ago.