June 4 (Reuters) – Coca‑Cola is adjusting ways to keep its drinks both affordable and appealing as consumer demand remains uneven across income groups, CFO John Murphy said at an industry conference on Thursday.
The beverages giant, which raised its annual profit target in April, said it was navigating the disruption from the U.S.-Israeli war on Iran “not perfectly well, but without fear, without trepidation.”
“The outlook… of the Middle East situation is still not clear,” Murphy told investors at the Deutsche Bank consumer conference in Paris, adding that it “is going to be a topic on all of our agenda as we go into 2027.”
Coca‑Cola is leaning on a mix of pack sizes, formats and price points, from smaller, lower-cost, single-serve options to larger and premium offerings, to cater to a wider range of consumers while keeping prices affordable for budget-conscious shoppers.
Recent earnings from major U.S. retailers suggest consumers remain resilient but are spending more selectively, as rising fuel costs linked to the Iran conflict and persistent inflation weigh on budgets.
Murphy echoed that view, cautioning that “the narrative on the consumer being resilient is a nuanced narrative… because they’re not all the same.”
He added that parts of Coca‑Cola’s consumer base are under strain, particularly those earning between $50,000 to $60,000 annually, noting “we have segments… that are under pressure, and we have a choice to stay relevant with them or not.”
“The math is pretty obvious. It doesn’t work… they just don’t have the purchasing power,” he said.
Shares of the company were up about 1.5% in premarket trading.
(Reporting by Savyata Mishra in Bengaluru; Editing by Devika Syamnath)
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