Is Coke’s plan to attract younger customers working? Last quarter’s earnings point toward yes.
The Atlanta-based company has made a point of attracting younger and more health-conscious consumers recently, with products like smaller can sizes and flavored waters.
Sales for Coke's 7.5-ounce mini cans grew 15% in the United States during the last quarter, the company reported. The smaller cans have 90 calories and 25 grams of sugar, as compared to 140 calories and 39 grams of sugar in a traditional can.
Additionally, the company reported double-digit growth in sales of Coca-Cola Zero Sugar.
The company has publicly stated its interest in attracting millennial customers in recent years, who had largely been turning away from Coke's flagship products. And while its a slow-going process, Coke CEO James Quincey said last week that he thinks the strategy is paying off.
"Has it flip-flopped overnight? No, it hasn't," Quincey said last week during a conference call, according to CNN.
But, Quincey added, last quarter's sales indicate “a revitalization of the sparkling business.”
"Our performance gives us confidence that our strategies are taking hold with our consumers, customers and system," Quincey said in a statement.
The company reported an 8% growth in net revenues last quarter, while organic revenue grew by 5%.
The company also announced plans to introduce a new energy drink product in the states next year. According to the press release, Coca-Cola Energy and Coca-Cola Energy Cherry will roll out in 12-ounce cans in January 2020.
About the Author
