CLAIM #35632 · The Coca-Cola Company (KO) · 2024Q4 earnings call · Feb 11, 2025 · due Dec 31, 2025
“we control enough variables that we can adapt and mitigate our way through what is happening because it's a combination of hedging, which we use on the key materials.”
James Quincey · CEO
In context
“, as we sit here today. And of course, as it relates to our strategies, around ensuring affordability and ensuring consumer demand. If one package suffers increase in input costs, we continue to have other packaging offerings that will allow us to compete in the affordability space. So for example, if aluminum cans become more expensive, we can put more emphasis on PET bottles, et cetera, et cetera. So we will adapt the packaging strategy in function of change in the relative input costs of what goes into that. So that is part of the total adaptation plan that we use around the world. So I don't believe if part of the question in the second half is, do you think this is going to fundamentally undermine the ability of the system to do well in volume in 2025? The short answer is no. I think we control enough variables that we can adapt and mitigate our way through what is happening because it's a combination of hedging, which we use on the key materials. It's an opportunity to to do mix management between different packaging materials. And of course, we're going to look at where the supply is from because it's all about relative pricing. To the extent relative pricing changes, we can seek to adapt. And so I think this is mitigatable and manageable and 1 of the dynamic elements of 2025 that I think we came through. Operator: Our next question comes from Andrea Teixeira from JPMorgan. Andrea Teixeira: I have a question on Mexico and then a follow-up on mix. On Mexico, you have obviously managed cycles, regulation tax as well and arguably, you count on one of the best bottling partners there. But can you comment on the playbook? And if you're embedding a deceleration in volumes there? And can you talk about the potential risk of recession or”
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SEC filings for KO ↗ · Claim quote is verbatim from the 2024Q4 earnings call.