Coca-Cola Loses India Market Share as Aluminium Costs Bite
KO sits 38% above its 52-week low of $65.354.
Summary
Coca-Cola lost market share in India during Q2, CFO John Murphy confirmed, as high aluminium costs and packaging gaps in the mid-tier price segment hurt competitiveness. The company is scrambling to source larger cans from Southeast Asia after the U.S.-Israeli war on Iran squeezed aluminium supply, triggering a Diet Coke shortage and a surprising demand surge. Murphy expects a 10x increase in Diet Coke demand this year off a small base, calling it a 'wonderful problem.' The India weakness dragged on otherwise strong Q2 results and raised guidance reported earlier today. Recovery hinges on fixing the pack price architecture, but near-term margin pressure from aluminium and PET costs is a headwind.
At the time of this announcement, KO was trading at $89.94 on NYSE in the Trade & Services sector, with a market capitalization of approximately $386.9B. The 52-week trading range was $65.35 to $90.16. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.