Coca-CEO Cola’s attributed “strong sales” across all operating segments in the company’s first quarter results for 2022 to increased marketing investment.
Coca-Cola plans to continue investing in its brands this year to combat inflation while becoming “even more effective” with its marketing spend, according to the company’s first-quarter results for 2022.
This will entail “leveraging” work done during the pandemic and being “flexible” with its investment mix at the local level, according to chief financial officer John Murphy on a conference call with investors today (25 April)
Murphy did not provide specifics on how the company’s marketing investments had changed since the previous quarter, but he did say that investments within the business can vary “depending on what [it] needs to do locally.”
Coca-Cola committed to increasing consumer-facing marketing spend to levels comparable to 2019 in its results call for the fourth quarter of 2021. Murphy stated today that the company will “continue to prioritize consumer-facing marketing to maximize returns while driving productivity.”
Coca-Cola reported “strong” results in the first quarter of 2022. In the third quarter, net revenue increased by 16 percent to $10.5 billion (£8.3 billion). It also saw an increase in the number of sales it made. During the quarter, unit case volume increased by 8%.
“Our accelerated marketing and innovation agenda is tying our beverages to daily consumption occasions, adding and creating value for brands,” he continued.
Despite the increase in sales, the company maintained its 2022 outlook, citing geopolitical tensions and “uncertain consumer sentiment” as reasons to be cautious.
Quincey stated that the company wanted to “stay connected to people who are coming under purchasing power pressure” by finding packaging and price options that could reach that more entry level consumer in the face of rising costs.
He also reaffirmed Coca-commitment Cola’s to “earning” the right to raise prices through initiatives such as marketing and innovation.