US – The Coca-Cola Company, one of the largest beverage manufacturers in the world, has recorded an 11% decline in net revenue for the full-year ending December 2020, following ‘incremental pressure’ amid the pandemic during Q4.
The company full-year net revenues stood at US$33 billion as at 31st December while net revenue for the fourth quarter dropped by 5% to reach of US$8.997 billion.
Coca-Cola says that while volumes broadly remained resilient particularly in at-home channels, it experienced incremental pressure in December and into the early part of this year due to a resurgence of the coronavirus in many parts of the world.
Global unit case volume for the multinational beverage company declined 3% in Q4 and 6% for the full-year, as continued strength in at-home channels was more than offset by coronavirus pressure in away-from-home channels.
Even as the pandemic dragged on during the year, Coca-Cola says it prioritized core brands, which resulted in Trademark Coca-Cola volume growing 1% for the quarter, led by Coca-Cola® Zero Sugar with volume growth of 3% for the quarter and 4% for the full year.
In away-from-home channels, the company took action to capture available opportunities.
In the United States for instance, the company developed new, multi-serve takeout bundles for drive-through channels and innovated with touchless Freestyle equipment.
In digital channels, the company continued to invest in omnichannel opportunities which it says helped it gain 3 points of value share in China where digital commerce growth is highest.
Despite of this, Sparkling soft drinks fell 4% for the full year due to pressure in the fountain business in North America and away-from-home channels in Western Europe.
Water, enhanced water and sports drinks declined also 11% for the year, while tea and coffee fell 17%, primarily driven by coronavirus-related pressure on the company’s Costa retail stores.
For the full-year, Europe, Middle East & Africa net revenues fell 14%, Latin America declined 15%, North America 4%, Asia Pacific 11% and bottling investments 16%.
The owner of Sprite and Smartwater says it has continued to make progress in establishing its networked organisational model, which became effective 1 January 2021.
The new structure has resulted in an approximate 11% net reduction in roles, excluding the Bottling Investments and Global Ventures operating.
James Quincey, chairman and CEO of The Coca-Cola Company, said: “The progress we made in 2020, including the actions taken to accelerate the transformation of our company, gives us confidence in returning to growth in the year ahead.”
“While near-term uncertainty remains, we are well-positioned to emerge stronger from the crisis, driven by our purpose and our beverages for life ambition.”
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE