The Coca-Cola Company has reported a 17% rise in full-year net revenue to $38.7 billion, after its performance was boosted by concentrate sales and higher prices.
For Q4, the company – which owns major beverage brands including Coca-Cola, Sprite and VitaminWater – posted net revenue growth of 10% to $9.5 billion, ahead of its 2019 performance.
Operating income grew 15% for the year but declined 28% in Q4 – driven by currency tailwinds and higher marketing spend.
Global unit case volume – a key indicator of demand – grew 8% year-over-year in 2021. Volume growth was strong across most markets, and particularly in China, India and Russia, as well as the developed markets of Mexico, the US and the UK.
However, Coca-Cola warned that cost inflation was likely to continue this year. Global supply chain disruptions and surging raw material costs have squeezed the profit margins of companies across the packaged food and beverage industry, forcing them to respond with price hikes.
In 2021, unit case volume of sparkling soft drinks grew 7%, driven by a strong performance across all geographic operating segments. Meanwhile, nutrition, juice, dairy and plant-based beverages grew 12% for the year.
Hydration, sports, coffee and tea saw unit case volume grow 7%. Coffee grew 15% for the year, primarily driven by the ongoing reopening of Costa retail stores in the UK. Sports drinks grew 13%, mainly on the strength of Bodyarmor’s performance in the US market.
“In 2021, our system demonstrated resilience and flexibility by successfully navigating through another year of uncertainty,” said James Quincey, chairman and CEO of The Coca-Cola Company.
“While the environment remains dynamic, we will build on the momentum from 2021 to drive top-line growth and maximise returns.”
In its full-year guidance, Coca-Cola said that it expects to deliver organic revenue growth of 7-8%.
By Antonia Garrett Peel
Source: foodbev.com
Danone has appointed Carla Hilhorst to the newly created position of senior vice president of research and innovation categories and zones, as the company looks to make science the heart of its business. Hilhorst, who brings over 30 years of experience in research and innovation, will report directly to Isabelle Esser, Danone’s chief research, innovation, quality and food safety officer.
The move, part of Pernod Ricard’s strategy to enhance its premiumisation efforts, will allow the company to focus more resources on its portfolio of premium international spirits and champagne brands that drive the growth of its business. This decision aligns with the company’s commitment to delivering sustainable value for shareholders, employees, clients and partners.
Schai – who is the current CEO of Swiss chocolate company Lindt & Sprüngli’s Australian operation – has previously worked with Aryzta from 2015-2018, where he served in roles including managing director for Asia Pacific and global strategic business lead (McDonald’s). The fast-food giant McDonald’s is one of Aryzta’s significant clients.
