Despite Coca-Cola’s worst quarterly performance in history in the aftermath of the new COVID-19, critics say the worst is already over. This is due to Coca Cola increased sales in Asia and Europe.
According to the Wall Street Journal (WSJ) on the 21st, Coca-Cola’s second-quarter sales plunged 28 percent year-on-year to $7.15 billion. This is the worst quarterly performance in the past 25 years.
About 50 percent of Coca-Cola’s sales come from restaurants, bars, movie theaters, and sports stadiums. And those sections are believed to have been hit directly in the aftermath of the quarantine imposed by the COVID-19.
Coca Cola Sales down, is it really the pandemic to blame?
However, some in Southeast Asia and Western Europe say that despite the aftermath of the COVID-19, sales have already bottomed out.
“In Southeast Asia, China and Western Europe, crisis response to the COVID-19 pandemic has shown significant effects. And sales have improved in May and June. In the U.S., there are still a lot of confirmed cases in the U.S. But the degree of closure has not been the same, so the worst is over,” said John Merch, Chief Financial Officer of Coca-Cola.
Reflecting expectations, Coca-Cola shares rose more than 3 percent during the day.
Some of the items sold better than usual due to the COVID-19 craze. Fairlife Milk and Simply Orange Juice are the items that feed Coca-Cola during this period. As the brands are healthier alternatives that the consumer prefer in the time of pandemic. Soda beverages such as Coca-Cola, Coca-Cola Zero, and Sprite also recorded good results. But they received the hard hit by the closure of restaurants and fast food chains in the wake of the social distancing.
With the COVID-19 going, Coca-Cola is simplifying its brand. Earlier this month, Coca-Cola decided to close its Odwaller Juice and Smoothie division. It will also stop delivering refrigerated trucks.
