In sharp contrast to a stop at competitor PepsiCo Inc (PEP.O), Coca-Cola Co (KO.N) announced on Tuesday that it would increase soda prices further in 2023 to combat persistently high expenses. The beverage industry titans banked on various strategies to increase sales for the year.
Coca-Cola also anticipated annual earnings growth above Wall Street projections, but PepsiCo had provided a grimmer outlook the previous week.
Due to a near duopoly in the global carbonated beverage industry, it has been relatively simple for corporations to implement numerous price increases over the past year due to cost inflation without seeing a decline in demand.
James Quincey, the chief executive of Coca-Cola, said the corporation would raise prices “around the world” again this year, although at a slower rate.
According to analysts, Coca-Cola has the authority to set prices in its category higher than rivals because of the strength of its brand.
For the full year ending on December 31, Coca-average Cola’s selling price jumped by 11%, while PepsiCo’s did so by 14%.
Coca-unit Cola’s case volumes decreased by 1% in the third quarter as a result of a decline in demand in Europe, where rising gasoline and power prices have caused a cost-of-living problem.
