- Coca-Cola posted a 5.1% decline in second-quarter revenue to $11.5 billion, which missed analysts' estimates and was the fifth straight quarter of sales declines. Earnings beat forecasts at $0.60 per share, versus the anticipated $0.58 per share.
- Coca-Cola's sales dipped in all regions but North America. They were especially dragged down by emerging markets like China and Argentina, CEO Muhtar Kent said in a statement. Currency headwinds also pressured top-line results, as organic revenues grew 3% for the quarter. The company cut its full-year organic revenue growth forecast to 3%, down from previous expectations of 4% to 5%.
- Dr Pepper Snapple reported a 2% increase in second-quarter sales and 11% increase in core EPS to $1.25 per share. That included a 1% uptick in BCS volumes for carbonated beverages and 2% increase for non-carbonated beverages, with flat volumes in the U.S. and Canada and 6% volume growth in Mexico and the Caribbean.
One shared characteristic among these two soda giants' earnings reports is a shift toward non-carbonated beverages. Both CEOs mentioned non-carbonated RTD beverages as positive factors in the most recent quarter.
DPS president and CEO Larry Young said in a statement that the company's Allied Brands portfolio was "driving meaningful growth." Recent additions to that portfolio include acquiring a minority stake in sports drink startup BodyArmor last August and penning a distribution partnership with RTD cold brew coffee maker High Brew Coffee in April. That latter move put DPS a step ahead of its competitors in tackling the fast-growing cold brew coffee market, before PepsiCo signed its own cold brew partnership with Starbucks last month. DPS's water category grew 25% in the quarter, led by strong growth in Bai Brands, Aguafiel and Fiji.
Coca-Cola also has made several moves to expand its non-carbonated and Venturing and Emerging Brands portfolio. Last month, the company announced the launch of Honest Sport, an organic sports drink line under the Honest Tea brand, and the purchase of a stake in L.A. Aloe, which produces the plant-based Aloe Gloe brand.
Still, the world hasn't given up on soda. Coca-Cola's unit case volume and concentrate sales were flat overall, but both grew 1% in North America, despite calls for soda taxes, warning labels on sugary beverage advertisements and other measures that could continue soda on its path of 11 consecutive years of consumption declines in the U.S.
Dr Pepper Snapple reported a 1% increase in BCS and sales volumes overall with mixed results among carbonated brands, ranging from growth for Squirt (8%) and Schweppes (9%) to declines for 7UP (10%) and Sunkist and A&W (low single digits).