Coca-Cola is adjusting how it presents and prices its beverage portfolio to preserve affordability and broaden appeal as consumer spending patterns diverge across income brackets, the company's chief financial officer said at an industry conference on Thursday.
Speaking at the Deutsche Bank consumer conference in Paris, CFO John Murphy underscored that demand is not uniform across Coca-Cola's customer base and described the companys approach to that challenge. He noted the business is confronting the disruption caused by the U.S.-Israeli war on Iran "not perfectly well, but without fear, without trepidation."
Murphy said the future path of tensions in the Middle East remains unclear. "The outlook of the Middle East situation is still not clear," he told investors, adding that it "is going to be a topic on all of our agenda as we go into 2027."
To respond to varying consumer budgets, Coca-Cola is relying on a mix of pack sizes, formats and price points. The strategy ranges from smaller, lower-cost single-serve bottles aimed at price-sensitive buyers to larger and premium offerings designed for different segments of the market. The aim, management indicated, is to remain relevant across income groups while keeping products accessible to budget-conscious shoppers.
Murphy referenced recent retailer reports that show consumers broadly remain resilient but are becoming more selective in their purchases. He attributed that selective behavior in part to rising fuel costs tied to the Iran conflict and persistent inflation, both of which are squeezing household budgets.
On the shape of consumer resilience, Murphy cautioned that the narrative is not uniform. "The narrative on the consumer being resilient is a nuanced narrative because theyre not all the same," he said. He also pointed out that parts of Coca-Colas consumer base are facing stress, singling out households with incomes in the $50,000 to $60,000 range. "We have segments that are under pressure, and we have a choice to stay relevant with them or not," he added.
Commenting on purchasing power, Murphy used frank language: "The math is pretty obvious. It doesnt work they just dont have the purchasing power," he said.
Investors appeared to respond positively in premarket trading, with Coca-Cola shares up about 1.5% ahead of the session.
Context and company positioning
Coca-Cola, which raised its annual profit target in April, is balancing assortment and price strategies to try to capture demand across a wide spectrum of consumers while remaining mindful of cost pressures that affect household budgets.