Coca-Cola Faces Losses Due to Major Boycott and Misinformation.

Coca-Cola reports a 4% decline in US sales and a 2% drop in net revenue for Q1 2025. CEO James Quincey attributes the decline to a weakening consumer sentiment, particularly among Hispanic consumers, following a viral TikTok video alleging the company laid off Latin American workers and reported them to ICE. Quincey claims the video contained false information, but acknowledges it impacted sales.

The Coca-Cola Company today reported its first-quarter 2025 results, showing a 2% drop in net revenue to $11.1 billion, driven by currency headwinds and the impact of refranchising bottling operations. Organic revenues (non-GAAP) grew 6%, with a 5% increase in price/mix and a 1% rise in concentrate sales. The company's operating margin expanded to 32.9%, while comparable operating margin (non-GAAP) reached 33.8% [1].

CEO James Quincey attributed the decline in US sales, specifically a 4% drop, to a weakening consumer sentiment, particularly among Hispanic consumers. The company faced a viral TikTok video alleging layoffs of Latin American workers and their reporting to ICE. Quincey acknowledged the video contained false information but noted it had an impact on sales [1].

Despite the challenges, the company reported a 2% increase in unit case volume, led by growth in India, China, and Brazil. Sparkling soft drinks and Coca-Cola Zero Sugar saw significant growth, with the latter increasing by 14%. Juice, value-added dairy, and plant-based beverages also grew by 1%, while water, sports, coffee, and tea grew by 2% [1].

Free cash flow (non-GAAP) declined to approximately $5.5 billion due to a $6.1 billion contingent consideration payment related to the acquisition of fairlife, LLC. Excluding this payment, free cash flow was $558 million [1].

Coca-Cola continued to innovate and expand its portfolio. The company launched Simply Pop, a prebiotic soda, and extended its global leadership in the ready-to-drink tea category. In emerging markets, the company achieved double-digit volume growth through local marketing strategies and community investments [1].

References:
[1] https://www.coca-colacompany.com/media-center/coca-cola-reports-first-quarter-2025-results