Coca-Cola CFO flags uneven demand, warns of Middle East risks into 2027

June 4 (Reuters) - Coca‑Cola is ‌adjusting ways ​to ​keep its drinks both affordable and appealing as consumer demand remains uneven across income groups, CFO John Murphy ‌said at an industry conference on Thursday.

The beverages giant, ⁠which raised its annual profit target in April, said it was navigating ‌the disruption from the U.S.-Israeli ‌war on Iran "not perfectly well, but without fear, without trepidation."

"The outlook… of the Middle East situation is still not clear," ​Murphy told investors at the Deutsche Bank consumer conference in Paris, adding that it "is going to be a topic ⁠on all of our agenda as we go into 2027."

Coca‑Cola is leaning on a ​mix of pack sizes, formats and price points, from smaller, lower-cost, single-serve options to larger and premium ​offerings, to cater to a wider ‌range of consumers while keeping prices affordable for budget-conscious shoppers.

Recent earnings from major U.S. retailers suggest consumers ⁠remain resilient but are spending more selectively, as rising fuel costs linked to the Iran conflict and persistent inflation weigh on budgets.

Murphy echoed ⁠that view, cautioning that "the narrative on the consumer being resilient is a ​nuanced narrative… because they're not all the same."

He added that parts of Coca‑Cola's consumer base are under strain, particularly those earning between $50,000 to $60,000 annually, ‌noting "we have segments… that are under pressure, and we have a choice to stay relevant with ‌them or not."

"The math is pretty obvious. It doesn't work… they ⁠just don't have the purchasing ‌power," he said.

Shares ​of the company were up about 1.5% in premarket trading.

(Reporting by Savyata Mishra in Bengaluru; Editing by ‌Devika Syamnath)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Nvidia Q2 preview: a beat is a fail, a blowout is base case
• DA Davidson Assumes Knife River Corp. (KNF) at Buy
• Lakeland Industries wins multiple Latin America contracts