The Sun (Malaysia)

Coca-Cola: American consumers still in good shape

The US consumer remains in “good shape”, although there has been some shifting behaviour toward less costly products, Coca-Cola said on Tuesday.

Its chief executive officer, James Quincey, described a pivot to “slightly more” consumptio­n at home, where prices are lower compared with away-from home offerings.

“There is some purchasing power compressio­n in the lower-income echelons,” Quincey told analysts on a conference call, adding that the adjustment “is at the periphery rather than a big shift”.

Quincey’s comments are in line with remarks from leading bank executives earlier in earnings season, who described the US consumer as still fairly healthy despite a lengthy period of higher consumer prices and elevated interest rates.

But the remarks contrasted somewhat with those of McDonald’s executives on Tuesday in which they described a bigger shift in consumer behaviour.

Shoppers as demanding value “more than ever”, the fast-food chain said.

“Obviously, (consumers) are getting hit across their full basket of goods and services by all the

McDonald’s

Borden.

Coca-Cola’s comments came as it reported a 2% rise in first-quarter profits to S$3.2 billion on revenues of US$11.3 billion, up 3%.

The soda company lifted many of its full-year projection­s.

It now expects revenue growth of 8% to 9% for this year, up two percentage points from the prior range, when acquisitio­ns and currency movements are removed.

Shares of Coca-Cola fell 0.6% in afternoon trading. inflationa­ry impacts,” said chief financial officer Ian