Coca-Cola CEO Reveals Surprising News About Inflation - Bobby Axelrod Reacts

Quincey: Inflation Moderating in Most Markets

So it looks like Coca Cola's CEO James Quincey has finally come to terms with the fact that inflation isn't skyrocketing everywhere. According to Quincey inflation is actually moderating in most markets. I guess he's realizing that you can't keep hiking prices forever and expect people to keep buying your sugary drinks. But hey it's good news for consumers who were getting tired of paying ridiculous amounts for a can of soda.

Price Hikes Helped Coke Beat Wall Street's Estimates

Well well well looks like Coca Cola played the old price hike card again and managed to exceed Wall Street's expectations for sales. I have to admit it's a clever move. Raise prices boost revenue and make those shareholders happy. But let's not forget Coke's price hikes have slowed down from the double digit increases we've seen in the past two years. Looks like the sugar rush is finally wearing off.

95% of the Business Sees Modest Price Increases

According to Quincey 95% of Coca Cola's business is experiencing modest price increases. I guess the hyperinflation in markets like Argentina is the exception here. But hey as long as the majority of Coke's markets are only seeing a 3.5% increase in prices I think we can all breathe a sigh of relief. Well except for those poor souls in Argentina who are probably feeling the pinch.

Consumers Opt for Cheaper Alternatives

It seems like consumers in Europe and the U.S. have had enough of Coke's expensive beverages. Instead of shelling out for the premium brands like Simply and Smartwater they're turning to cheaper private label juices and bottled water. I can't say I blame them. Why pay top dollar for a fancy name when you can get the same hydration from a generic bottle? It's called being smart with your money people.

Two Different Directions for the U.S. Consumer

Ah the good old U.S. of A. Where the consumer can't seem to make up their mind. According to Quincey those with more money to spare are splurging on Coke's premium drinks like Fairlife milk. Meanwhile those on a tighter budget are cutting back and going for value packs instead. It's like a tale of two Americas where even your choice of beverage reveals your financial status. Fascinating stuff.

Coke's North American Volume Shrinks

Well it looks like Coke's strategy of raising prices isn't all sunshine and rainbows. Their North American volume actually shrank by 1% in the quarter. I guess not everyone is willing to pay the extra buck for their favorite soda. Maybe they're finally waking up to the fact that there are healthier and cheaper alternatives out there. Sorry Coke but the jig is up.