Coca-Cola CEO James Quincey Doesn't See Much Impact From Weight-Loss Drugs, Highlights Calorie-Conscious Strategy

Zinger Key Points
  • Coca-Cola reports strong third-quarter financial results on Tuesday, beating analyst estimates on both the top and bottom line.
  • CEO James Quincey says the company has been on a journey to create products for those who want to consume less calories.

There has been a lot of talk lately about the impact of weight-loss drugs on food and beverage brands, but Coca-Cola Co KO chairman and CEO James Quincey says the iconic beverage company is positioned to weather any adverse effects

KO Stock Pops: Coca-Cola reported sparkling third-quarter financial results on Tuesday, beating analyst estimates on both the top and bottom line.

Despite concerns weight-loss drugs such as Ozempic and Wegovy may be impacting food and snack sales, Coca-Cola delivered strong sales numbers not just on rising prices, but on higher volumes.

The cherry in the soda was that the company also raised its full-year outlook citing confidence in its portfolio of brands and strength across the board. 

Why It Matters: In an interview on CNBC's "Squawk On The Street" following Coca-Cola's quarterly results, Quincey said the company is seeing robust demand in the U.S. and beyond after spending the last few years leaning into the growth opportunity through investments.

"We have the momentum behind our business that gives us good confidence for the rest of the year ... and we feel good about the momentum of our business going into 2024," he said.

The Coca-Cola CEO acknowledged demand is expected to fizzle slightly as inflation woes continue to take hold, but he doesn't anticipate any sizable impacts from weight-loss drugs like other companies have warned about

"What's important and distinctive about the Coca-Cola company ... we, in particular, have been on a journey for those people who want to consume less calories to provide zero-calorie drinks, to have innovation to take down the calories in other drinks and have smaller package sizes," Quincey said.

He told CNBC he doesn't believe these drugs provide a structural threat of any scale on the beverage industry as a whole and certainly not for Coca-Cola, which offers the consumer a ton of choice. 

"Almost every beverage we sell has a zero-calorie option," Quincey said. 

See Also: Nestlé To Develop Products For Users Of 'Miracle' Weight-Loss Drugs Like Ozempic, Wegovy

KO Price Action: Coca-Cola shares are down about 12.5% year-to-date, partially due to concerns about the impacts of weight-loss drugs. The stock was up 2.59% at $55.46 Tuesday afternoon following the company's strong quarterly results, per Benzinga Pro.

Photo:  from Flickr.

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsCNBCCoca ColaJames QuinceySODA
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!