The beverage giant’s core strategy for dealing with a likely difficult economic environment in 2023 will be to be “lean on growth,” the company’s CEO said.
Coca-Cola plans to keep marketing investments in the final three months of 2022 after “significantly” increasing spending in the third quarter to maintain the “long-term health of the business.” CEO James Quincy said.
On a conference call with investors today (October 25), Quincy and CFO John Murphy said Coca-Cola is prioritizing top-line growth as it navigates current macroeconomic challenges. He reiterated that marketing investment is an important driving force.
The company, which has “significantly increased” its investment in consumer marketing over the past three months, claims the spending has already paid off with brands such as Sprite, now a billion-dollar brand. increase.
Additionally, Coca-Cola’s net sales increased 10% to $11.1 billion in the quarter, with unit case volume up 4%. The business has raised its guidance for the full year and now expects organic revenue growth of 14-15%.
As we head into the final quarter of the year and prepare for a challenging 2023, marketing spend remains a business priority.
Mr Murphy said:
The success of our marketing model is based on two key factors. It’s about connecting passion points with opportunities to drive engagement, and leveraging experimentation to optimize your marketing.
James Quincy, Coca-Cola
The company said it is beginning to see changes in consumer behavior, particularly in Europe, where consumers are changing the way they purchase and consume beverages, including switching to private label products and shifting from out-of-home consumption to discounts. says that Retail company.
Despite this environment, Coca-Cola is confident in its ability to succeed.
“This year and beyond, we continue to see great opportunities in this industry.
He added that the business’ core strategy for dealing with a “dynamic” economic environment in 2023 will be to be “lean on growth”. We have not ruled out the possibility of reduction.
“If there is a situation in some part of the world where it is not worth continuing a high level of marketing investment and there is a reason to cut it, we will be more agile and adaptable to make those adjustments in the moment. Absolutely rely on,” said Quincy.
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He added that the business is leveraging its capabilities in areas such as marketing and innovation, leveraging revenue growth management and price pack architecture to “maximize affordability” for consumers. This business is an “insight mining” to understand what consumers need from their brands in times like these.
Providing what he calls “world-class marketing” is part of Coca-Cola’s mission. [it] In turbulent economic times, he added, there are two key factors underpinning a business’ marketing success.
“The success of our marketing model is based on two key ingredients: connecting points of opportunity and passion to drive engagement, and leveraging experimentation to optimize marketing,” he said. said.