ATLANTA – Coca-Cola today reported third quarter 2017 operating results and reaffirmed its full-year financial outlook. We asked President and CEO James Quincey for more perspective on results from the quarter and the year, to date.
Coca-Cola reported that net revenues were down 15%, while organic revenues were up 4%. What’s driving this difference?
We’re pleased with our performance this quarter, so let me explain this difference. For a number of quarters, our reported revenues have fallen, largely because of refranchising. Refranchising means that we’ve been selling company-owned bottling operations around the world to strong, independent local partners. This returns Coca-Cola to its historic role as a franchise leader rather than a franchise owner. As this happens, revenue from refranchised bottling operations is no longer included in the consolidated results of the company, as we no longer own these assets.
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What’s your perspective on the performance of this brand?
The brand’s global unit case volume grew high single digits during the third quarter, and in the United States, where it was introduced mid-quarter, it has...
What products do you have on the horizon?
Here’s one example: During the third quarter, McDonald’s announced a partnership with Coca-Cola for ready-to-drink McCafé Frappés. These drinks will be produced, distributed and marketed by the Coca-Cola system and...
Innovation and expanding Coca-Cola’s portfolio
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What work still needs to be done in refranchising?
There are two major areas: North America and Africa. We’re very close to completing the process in the United States and anticipate closings in...
