Coca-Cola Keeps Raising Prices, Driving Profits Higher

Coca-Cola generated better-than-expected earnings as consumers continued to pay higher prices for soft drinks and juices, further evidence that shoppers are willing to keep spending in the face of record inflation and rising interest rates.

The company, whose brands include Sprite and Minute Maid, said on Tuesday that third-quarter revenues increased by 10 percent and profit grew by 14 percent versus the same period last year.

The biggest driver was a 12 percent jump in growth linked mostly to raising prices, alongside shifts in the mix of products sold in the quarter. At the same time, the volume of products sold rose by 4 percent, showing consumers’ willingness to pay more for the company’s products.

When Coca-Cola’s rival PepsiCo reported its third-quarter earnings this month, price increases were accompanied by weaker growth in volumes. Coca-Cola’s results highlighted consumers’ willingness to continue buying their favorite products despite being squeezed by higher prices at the grocery store and the gas pump.

(US.KO)

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