Coca-Cola has issued a major warning to all of its customers that it will continue to raise the cost of its products this year, despite seeing a growth in sales.
The soft drinks company confirmed in a trading update this week that buyers would continue to see cost increases throughout 2023, with prices already rising by 12 percent.
Despite seeing a growth in its sales this year, Coca-Cola chief executive James Quincey warned to expect more price increases 'across the world' this year, reported BirminghamLive. The beverage giant owns brands including Coca-Cola, Sprite, Lilt, Fanta, Powerade and SmartWater.
Quincy said: "There will be price increases across the world in 2023."
The company has also reported a full-year 2022 revenue growth of 11 percent to reach $43billion this year.
Prices across Europe have already risen by 15 percent compared to last year in the three months to the end of December, despite the company's revenue continuing to grow.
The firm forecasts its full-year adjusted earnings per share will rise between five and five percent - compared to the average analyst estimate of 2.96 percent growth.
During the October to December period, Coca-Cola's revenue saw an increase by seven percent as it soared to $10.1 billion, which is reportedly just ahead of Wall Street forecasts, according to analysts polled by FactSet.
Quincey said: "While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment. We are keeping consumers at the centre of our innovation and marketing investments, while also leveraging our expertise in revenue growth management and execution. Our growth culture is leading to new approaches, more experimentation, and improved agility to drive growth and value for our stakeholders."
The chief executive's comments come just as the company expects that it will achieve group revenue growth of 8 percent in 202.
Quincey added: "Inflation is likely to moderate as we go through the year, and therefore we expect the rate in which prices are going to increase will start to moderate and become more normal by the end of the year
"It looks like the European economy is going to avoid a technical recession, but clearly consumer demand is softening, and I think that’s likely to continue into the rest of the year."
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