Coca-Cola’s streak of 12 straight quarters of North American volume growth ended in the second quarter, and the company says bad weather is partly to blame.
Profit and revenue also fell slightly during the quarter, Coke reported, in part because of the volume drop of 1 percent in the beverage giant’s biggest region.
Consistent rain and cold temperatures — as well slower income tax refunds and the end of the payroll tax cuts to some extent — dampened consumer interest in popping into a convenience store for a Coke Zero or Vitaminwater, Atlanta-based Coca-Cola said.
Global growth also was hindered by weather, especially in India where monsoon rains began earlier than usual.
"Our second quarter volume results came in below our expectations, reflecting an ongoing challenging global macroeconomic environment and unusually poor weather conditions in the quarter," Coca-Cola Chairman and Chief Executive Officer Muhtar Kent said.
The down numbers for North America is a switch for Coca-Cola, which has seen its market share in non-alcoholic beverages grow in the region — including the second quarter — even as the company raised prices on its products.
While volume for sodas has been flat or slightly down over the past few years as Americans consume fewer sugary drinks, volume for water, juices and teas have climbed steadily.
Net profit for the quarter was $2.68 billion, or 59 cents a share, down from $2.79 billion, or 61 cents a share, a year earlier. Revenue fell to $12.75 billion, from $13 billion.
Kent insisted the second-quarter setback will be reversed. He called the confluence of lengthy bad weather and tighter consumer purse strings an anomaly, saying the company’s increased marketing efforts and bottling investments will lead to growth for the rest of the year.
“We expect the weather to normalize,” he said.
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