Investing.com — Coca-Cola is changing its approach to keep beverages affordable and attractive as consumer demand varies across different income levels, CFO John Murphy said Thursday at an industry conference.<\/p>\n
The beverage company, which increased its annual profit forecast in April, said it was managing disruption from the U.S.-Israeli war on Iran “not perfectly well, but without fear, without trepidation.”<\/p>\n
“The outlook\u2026 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.”<\/p>\n
The company is using different pack sizes, formats and price points to reach more consumers. Options range from smaller, lower-cost single-serve products to larger and premium items, aiming to maintain affordability for shoppers watching their budgets.<\/p>\n
Recent earnings from major U.S. retailers show consumers remain resilient but are spending more carefully, as rising fuel costs linked to the Iran conflict and ongoing inflation affect household budgets.<\/p>\n
Murphy shared this view, noting that “the narrative on the consumer being resilient is a nuanced narrative\u2026 because they\u2019re not all the same.”<\/p>\n
He said some parts of Coca-Cola\u2019s customer base face financial pressure, particularly those earning between $50,000 to $60,000 per year. “We have segments\u2026 that are under pressure, and we have a choice to stay relevant with them or not,” Murphy said.<\/p>\n
“The math is pretty obvious. It doesn\u2019t work\u2026 they just don\u2019t have the purchasing power,” he added.<\/p>\n
The company\u2019s shares were trading roughly 1.5% higher in pre-market Thursday.<\/p>\n
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