Swire Coca-Cola's sales in China have decreased.

21st Century Business Reporters He Hongyuan and Interns Tan Yiting Report

Coca-Cola's growth in China seems to be driven by price hikes.

According to the financial report released by Swire, in 2024, Swire Coca-Cola's sales in mainland China reached HK$25.234 billion, up from HK$24.725 billion in 2023; its profit in mainland China was HK$8.39 billion, up 6% YoY.

Specifically, in 2024, Swire Coca-Cola's revenue from carbonated drinks in mainland China increased by 3% YoY, and its revenue from energy drinks and coffee increased by 41% and 1% respectively.

This is a very good result.

Swire Coca-Cola is one of the two partners of Coca-Cola Company in China, with exclusive rights to produce, promote and distribute Coca-Cola Company's products in eleven provinces of mainland China (Guangdong, Fujian, Anhui, Jiangxi, Jiangsu, Hainan, Henan, etc.) and Shanghai.

Driven by this, Coca-Cola's performance in China has been growing.

In the fourth quarter of 2024, Coca-Cola's revenue was US$11.544 billion, up 6% YoY; its net profit was US$2.213 billion, up 11% YoY. Coca-Cola specifically pointed out in its financial report that its global case volume grew 2% in the fourth quarter, driven mainly by China, Brazil and the United States.

However, it should be noted that such growth seems to be more driven by price hikes. In 2024, Swire Coca-Cola's total volume in mainland China fell 1% YoY, and its active retail outlets also fell 1% YoY.

According to reports from multiple media, in the first half of 2024, three Coca-Cola beverage companies in Hubei, Jiangxi and Zhengzhou disclosed notices indicating that multiple products including carbonated drinks, fruit juices and flavored drinks would be adjusted in price. Zhengzhou mainly adjusted the prices of six 500ml carbonated drinks including Coke, Sprite, Fanta, and Fanta, with a suggested retail price of RMB3.5, up 16.6% from the previous RMB3. The adjustment range in Hubei and Jiangxi is even wider, covering multiple categories and multiple volume values (300ml-2L) of carbonated drinks, fruit juices and flavored drinks, with a suggested retail price ranging from RMB2.5 to RMB11, with an overall price increase of 7%-25%.

With further expansion of production capacity, how Swire Coca-Cola balances price and volume is worth market attention.