Pixel-Me-Up

Image source: VideoFlow - Shutterstock

What's going on?

Coca-Cola posted its highest quarterly revenue and profit since 2016 on Monday, and the drinks maker has already found its next untapped market: dead-eyed avatars.

What does this mean?

Youve got to hand it to Coke: the rising cost of its drinks didnt put loyal customers off last quarter, but the company still went out of its way to cater to an inflation-hobbled market. It released smaller bottles at more affordable prices (which, less altruistically, probably had higher profit margins), and subsequently sold 8% more products last quarter than the same time last year. That helped push up the companys organic revenue which strips out the effects of currency swings and acquisitions by a better-than-expected 18%. And even though it announced that suspending operations in Russia one of its fastest growing markets would bruise growth, the company stuck with its full-year revenue target for 2022.

Why should I care?

The bigger picture: Consumer staples arent invincible.
Cokes results arent exactly surprising: its a consumer staples company that sells products people tend to buy no matter what. But Coke acknowledged that theres only so far that it can put its prices up before customers put the bottle down, while admitting that even higher costs of sugar, aluminum, and more were on the way. Fellow staple Kelloggs said similar things earlier this year, suggesting the typically recession-proof sector could eventually see profits melt away like yesterdays soggy cornflakes.

Zooming out: Epic marketing, n00bs.
Its good to know that if youre ever feeling virtually parched, you can just slake your virtual thirst with a refreshing virtual Coke: the company announced earlier this month that it would be launching a new drink in the metaverse. But not to worry if youre one of the dweebs still hanging out in the real world: you could get your hands on the super-limited edition pixel-flavored drink when it launches next month.

 

Originally posted as part of the Finimize daily email.

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