The new CEO of Coca-Cola aims to accelerate innovation in response to the rising trends of low-sugar and weight-loss products
Coca-Cola’s incoming CEO Henrique Braun emphasized the need for the soda giant to accelerate innovation, as packaged food companies globally strive to adapt to changing preferences for low-sugar products and the surge in weight-loss medications.
“We must enhance our connection with the consumer and accelerate our speed to market,” Braun, who is poised to assume the role of CEO at the end of March, stated during a post-earnings call.
The company projected modest revenue growth for 2026 following a shortfall in fourth-quarter expectations, attributed to a decline in soda demand in North America and Asia.
“Although we have achieved some improvement in our overall success rates in recent years, our current level of innovation falls short of expectations.”
Rival PepsiCo announced last week that it is focusing on single-serve packs to boost demand for its snacks, highlighting the shift in consumer preferences that packaged food companies are preparing for.
Coca-Cola’s shares reduced their premarket losses to open with a decline of approximately 1%. In 2025, they achieved an increase of approximately 12% and have consistently surpassed PepsiCo in performance over the last few years.
The company anticipates that organic revenue for 2026 will increase by 4% to 5%, in contrast to estimates predicting a 5.3% growth and a 5% rise for 2025. “(The forecast) appears conservative, yet is suitable for the beginning of the year.” “The Street probably anticipated more,” noted Jefferies analyst Kaumil Gajrawala in a report.
RELYING ON PRICE INCREASES
Coca-Cola has been increasing beverage prices to counteract rising input costs, which has impacted the budgets of U.S. consumers facing inflation and seeking more affordable pantry alternatives.
Last year, Coca-Cola introduced its mini 7.5-ounce single-serve cans, available for under $2 in U.S. convenience stores, aiming to reach lower-income consumers and encourage more individuals to sample the product.
Last week, PepsiCo announced it would reduce prices on essential snacks like Lay’s and Doritos, responding to consumer resistance against multiple price increases in recent years.
Coca-Cola’s overall case volumes increased by 1% in the quarter, consistent with the growth reported in the previous three months. They remained unchanged throughout the year, while a 4% increase in price contributed to performance improvement.
During the quarter, volume growth remained stagnant in the Asia-Pacific region as the company faces increasing competition from regional brands. Executives highlighted challenges in China and India specifically during a post-earnings call.
Coca-Cola announced fourth-quarter revenue of $11.82 billion, falling short of estimates which were set at $12.03 billion. On an adjusted basis, it reported earnings of 58 cents per share, surpassing estimates of 56 cents, based on data compiled by LSEG.
It projected annual adjusted profit per share growth of 7% to 8%, in contrast to expectations of a 7.9% increase.
