Coca-Cola's revenue misses on weak China, Latina America markets | Progresiv
Coca-Cola Co reported lower-than-expected quarterly revenue due to weakness in China and certain Latin American economies, and the company warned of no improvement in those markets for the rest of the year. 
Coke said it was working to combat changing consumer tastes in China, such as the growing demand for premium water and the falling popularity of its juices, by introducing more premium offerings and expanding in second-tier and rural areas with more affordable products.
The company, like several other multinational companies, is also struggling with high levels of inflation in some Latin American economies, including Brazil, Venezuela and Argentina.
Latin America accounted for 9 percent of Coca-Cola's total revenue in 2015.
Coke reduced its forecast for organic revenue growth to 3 percent in 2016 from 4-5 percent growth estimated earlier.
Organic revenue excludes the impact of currency movements, acquisitions and divestitures.Revenue from North America, the company's largest market, rose 2 percent in the second quarter ended July 1, while revenue fell in all other regions. The company's net operating revenue fell 5.1 percent to 11.54 billion dollars, the fifth straight quarter of decline.
Coke and rival PepsiCo Inc have been struggling as consumers increasingly turn health-conscious and cut back on fizzy drinks and opt for teas, fruit juices and smoothies.
Coke has responded by building its non-carbonated drinks portfolio, expanding beyond North America and cutting costs by refranchising its bottling operations. Net income attributable to shareholders rose 11 percent to 3.45 billion dollars, or 79 cents per share, in the quarter.
Coca-Cola also said it signed letters of intent with two U.S. bottlers to expand distribution areas in two states. (www.reuters.com)
