Coca-Cola Sees Fourth Quarter Demand Surge Despite Price Hikes; Shares Dip on Cautious Outlook

In the final quarter of the year, Coca-Cola experienced a surge in U.S. demand despite implementing price hikes. The Atlanta-based beverage titan reported a 1% increase in global unit case volumes from October to December, driven primarily by gains in the U.S., Japan, and Brazil. This uptick in North America is particularly noteworthy as it marks a turnaround from previous quarters of stagnant or declining sales.

Throughout the quarter, Coca-Cola raised its prices by 4% in North America and 1% globally. Despite these increases, Coca-Cola Zero Sugar emerged as a standout performer, achieving a remarkable 13% boost in sales during the same period. Additionally, the company saw heightened demand for its water, sports drinks, coffee, and tea offerings, although juices and dairy products did not fare as well.

Last fall, Coca-Cola noted a growing disparity among its North American and European consumer base. Higher-income shoppers have gravitated towards the company’s premium brands, such as Smartwater, Topo Chico, and Fairlife. Meanwhile, middle- and lower-income customers are feeling more financial strain, affecting their purchasing choices.

In response to these economic pressures, Coca-Cola recently launched 7.5-ounce mini cans in North American convenience stores. This strategic move aims to provide a more budget-friendly option for consumers seeking their favorite soft drinks.

Last month, the company introduced 7.5-ounce mini cans for the first time at North American convenience stores to help make its soft drinks more affordable.

Revenue rose 2% to $11.8 billion in the October-December period, falling short of Wall Street’s expectations. Analysts polled by FactSet expected quarterly revenue of $12.05 billion.

Net income rose 3% to $2.3 billion. Adjusted for one-time items, the company earned 58 cents per share, or 2 cents better then Wall Street had expected.

Coke said it expects its organic revenue to rise 4% to 5% in 2026. The company’s organic revenue grew 5% last year, and analysts were expecting close to that this year.

Shares fell almost 4% before the opening bell.

Coca-Cola announced in December that Henrique Braun, the company’s current chief operating officer and a 30-year veteran of the company, will become its CEO on March 31. Coke’s current Chairman and CEO, James Quincey, will become executive chairman.