Tough second quarter for Coca-Cola

The second quarter of 2008 treated Coca-Cola poorly in the U.S., according to statements released Thursday by the beverage giant and its largest bottler.

U.S. volumes remained flat while international volumes rose five percent - lifting the company’s worldwide volume growth to 3 percent – but the company reported a 23 percent drop in profits as it took a one time charge related to bottler Coca Cola Enterprises.

CCE posted a $3.17 billion loss that Chairman and CEO John Brock attributed in a press release to a “significant decline in the North American economy, coupled with unprecedented escalating commodity costs.”

Brock continued, adding that the bottler would raise prices after Labor Day to offset costs, but Morgan Stanley Analyst Bill Pecoriello said The Coca-Cola Company may do the same.

Pecoriello wrote a note to investors that said Coca-Cola is likely to evaluate a hike on concentrate prices to offset volume lost from price increases at the bottler level.

Source: BevNET.com Staff