Coke’s fizzle warning

Coca-Cola warned Monday consumer demand could slow as rampant inflation shows no sign of cooling and said it was focusing on more affordable and refillable glass bottles in markets facing the biggest pinch from price increases.

Demand for sodas and other packaged foods has so far held strong despite price increases that resulted from higher costs for everything from aluminum cans to sugar, labor and transportation.

To prepare for the expected drop in consumer purchasing power, Coca-Cola said it was expanding the distribution of cheaper returnable or refillable glass bottles in Latin America and Africa. It is also experimenting with returnable bottles in the Southwest United States.

Coke’s net revenue rose 16% to $10.5 billion in the first quarter and its shares rose 1.1%.