Coke sales strong, despite global woes

Atlanta-based Coca-Cola saw drink volume in North America grow 1 percent in the second quarter, though profit worldwide dipped slightly in part because of higher ingredient prices.

The company on Tuesday reported net profit of $2.79 billion for the quarter, down from $2.8 billion during the same period a year ago. On a per share basis the profit was $1.21 compared to $1.20 for the same period of 2011.

Overall sales volume globally was up 4 percent compared to a year ago, with every region seeing an increase except large swaths of Europe, where continued economic troubles affected sales. Germany was the exception, with volume up 1 percent.

In North America, Coca-Cola's biggest market, most categories had a solid quarter. Water volume rose 8 percent, Powerade sales gained 13 percent and juices jumped 3 percent.

However, the carbonated business — the largest share of Coca-Cola's market — declined 2 percent as the company maintained a 5 percent price increase to address rising prices on commodities such as sweeteners, aluminum and plastic bottles. Still, Coke Zero saw single digit growth while Fanta sales were up 6 percent.

"We are pleased with our second quarter and year-to-date results," Chief Executive Officer Muhtar Kent said. "We are delivering consistent quality performance in line with our 2020 Vision growth targets, despite a very challenging and increasingly unpredictable global economy."