Coca-Cola reveals full scale of price rises as it unveils bumper profits

Coca-Cola has boosted profits in the first three months of the year - driven by customers buying more drinks at higher prices.

Globally, its drinks - which also include Minute Maid, Topo Chico, Smart Water and Costa cost an astonishing 13 percent more on average than the start of 2023.

Despite the price hikes, the number of cans, bottles and fountain drinks it sold grew 1 percent between January and March compared to a year ago. 

That double-whammy of more drinks sold at a higher prices helped bump revenue up 3 percent to $11.3 billion, Coca-Cola said today as it reported quarterly earnings. Profits were up slightly too to $3.18 billion for the three months.

In North America, its biggest market, sales volumes were flat but prices up by 7 percent. On a can of Coke, which costs around $1, it is only a few cents. 

But families who drink multi-packs of 24 cans will see prices up a dollar. Meanwhile, 12 cans of Topo Chico hard seltzer are also up around $1.50 to $17.27 at Walmart.

Half of the worldwide figure of 13 percent price rises was driven by hyperinflation in Argentian and parts of Europe.

Coca-Cola has boosted profits - driven by price rises over the first three months of the year

Coca-Cola CEO James Quincey 

As a result of the price rises, bosses now expect the value of sales for the rest of 2024 to rise too.

The company is seeing demand in the US surge mainly in the away-from-home category as consumers venturing out for movies and dining are willing to spend on its higher-priced sodas and juices. 

Both Coca-Cola and PepsiCo are also enjoying buoyant demand for their products in international markets such as Europe and Asia where relaunches of Georgia Coffee, Sprite reformulations and a foray into newer markets have helped bump up sales. 

The soda giant expects sales through 2024 to grow between 8 percent and 9 percent, up from a previous forecast of a 6 percent to 7 percent rise. This is because of the higher prices.

'We're encouraged by our start to 2024, delivering another quarter of volume, topline and earnings growth amidst a dynamic backdrop,' said James Quincey, chairman and CEO of The Coca-Cola Company.