OAKBROOK TERRACE, Ill. -- With all three noting tough economies around the world, the major nonalcohol beverage makers all declared success as they reported mixed revenue results during the fourth quarter of 2015 and for the full year, particularly in North America.
Coca-Cola Co.
"Our fourth-quarter performance was a testament to the action we took (over the past year) as the company continued to deliver solid pricing and unit-case volume growth, culminating in 4% organic revenue growth for the full year," Coca-Cola Co. chairman and CEO Muhtar Kent said Feb. 9. "Importantly, this top-line growth was led by our flagship market of North America, which delivered its strongest annual performance in three years."
Coca-Cola reported full-year net revenue declined 4% while organic revenue grew 4%. Reported net revenue and organic revenue declined 8% and 1%, respectively, in the quarter, primarily due to the impact of six fewer days in our reporting calendar, the company said.
"In late 2014, we laid out a clear five-point plan to reinvigorate growth and increase profitability," Kent said. "In 2015, a transition year, we delivered on this plan despite an increasingly challenging global macroeconomic environment."
In North America, sparkling beverage (carbonated-soft-drink) volume growth in the quarter was driven by growth in Coca-Cola Zero, Sprite and Fanta, partially offset by a decline in Diet Coke, the company said. Still-beverage volume growth in the quarter was driven by juice and juice drinks, ready-to-drink tea and packaged water.
"We gained value share in total NARTD (North American ready-to-drink) beverages for the 23rd consecutive quarter driven by the continued increase in the quantity and quality of our marketing investments," the company said, "along with our disciplined approach to pricing and packaging strategies."
PepsiCo
PepsiCo reported organic revenue growth of 4% for the fourth quarter of 2015 and 5% for the full year.
"We are happy to report that we met or exceeded every financial goal we set for 2015, demonstrating consistent performance in the face of volatile [macroeconomic trends]," said chairman and CEO Indra Nooyi.
"Our portfolio has been strategically designed to weather the current macroeconomic challenges," she said. "Our results reflect the balance of our brand portfolio, geographic footprint, consistent marketplace execution and a relentless focus on productivity."
Nooyi added that she expects the "choppy macro environment" to continue but is optimistic about PepsiCo's place in the market.
"By making investments in our brands, product innovation and supply chain, we have fortified our business for sustained growth," she said Feb. 11. "Notably, we increased advertising and marketing expense as a percentage of sales by 40 basis points for the full year and 85 basis points in the fourth quarter."
In North America, PepsiCo reported its sales were "positively impacted by lower commodity costs and productivity gains, partially offset by operating cost inflation and higher advertising and marketing expense."
Dr Pepper Snapple Group
Dr Pepper Snapple Group (DPSG) reported net sales increased 2% for the quarter and 3% for the year.
"I'm proud of our teams for remaining focused against our priorities and delivering strong results in a competitive environment, said president and CEO Larry Young. "We grew both dollar and volume share across our CSD and shelf-stable juice categories and gained or held distribution across many of our key brands and packages in both grocery and convenience. The fundamentals of our business are strong, and as we move into 2016, our teams will be focused on driving growth across our priority brands through strong consumer communication, relevant innovation and aligned execution and activation while using our developing Rapid Continuous Improvement (RCI) capabilities to further enhance growth and productivity."
DPSG's earnings report showed packaged-beverage net sales increased 5% for the quarter on favorable product and package mix, a 1% increase in sales volumes and price increases.
For the quarter, bottled case sales volume increased 1%, with CSDs flat and noncarbonated beverages increasing 4%. For the year, volume increased 2% with CSDs increasing 1% and non-carbonated beverages increasing 4%.
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