Coca Cola regains fizz as out-of-home demand surge

Reuters|Washington 

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Coca-Cola Co KO.N beat revenue and profit expectations on Thursday as a partial reopening of theaters and restaurants boosted demand and helped the world's largest soda maker bounce back from a shattering second quarter.

Declines in “away-from-home” sales eased to mid-teens range in the third quarter from about a 50% slump in April at the height of lockdowns, while demand for its trademark Coca-Cola and Coca-Cola Zero Sugar also rose.

Coca-Cola makes about half of its revenue by selling its soft drinks at public venues and its closure had forced it to offer voluntary job cuts to about 4,000 workers in the United States.

The company said consumers were buying more sparkling soft drinks and juices from grocery stores and online.

Rival PepsiCo Inc PEP.O too survived the lockdown-fueled slump with better sales at convenience stores and gas stations as well as good demand for snacks.

Coca-Cola said it will cut the number of brands by half to about 200 and phase out products like ZICO coconut water and TaB sodas as part of its strategy to streamline beverage portfolio and focus more on popular products.

On a per-share basis, the Atlanta-based company earned 9 cents above expectations. Net revenue of $8.7 billion also beats estimates, according to Refinitiv data.