Coca-Cola reported $10.5 billion in first-quarter revenue, beating analysts’ estimates of $9.83 billion.
The company’s sports drinks segment, which includes BODYARMOR and Powerade, grew 22% during the quarter, and hydration products increased 8%.
- Sports drinks and sparkling soft drinks led growth for the quarter in North America.
- Hydration’s growth was predominant in Latin America, Europe, the Middle East, and Africa.
After the beverage giant first bought a 15% stake in 2018 to become BODYARMOR’s second-largest shareholder, Coca-Cola acquired the remaining shares in November for $5.6 billion. Coca-Cola’s earnings report marks BODYARMOR’s first full-quarter under the brand.
Cheers to Metaverse
As Coca-Cola’s sports drink segment continues to grow, so does its product innovation. Last month, Coca-Cola’s Byte appeared globally on Pixel Point, an island in the “Fortnite” game. The drink, which is set to be released in the U.S. next month, is supposed to taste like pixels. It’s currently only available (in real life) in select Latin American countries.
The company, which also has a partnership with game developer Riot Games, describes Byte as the “first-ever Coca-Cola flavor born in the metaverse.”
CEO James Quincey said during the earnings call that the company is trying to invest in brands so Coke drinkers will pay more, reasoning that a price hike is more favorable now than in a recession.