Coke's earnings down as global consumers spurn fizzy drinks

http://www.bbc.co.uk/news/business-34598295

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Coca-Cola has reported a 5% decline in total revenue for the three months to 2 October, stemming from the impact of a strong dollar.

The beverage company's net operating revenue was $11.43bn (£7.38bn) for the third quarter, compared with $11.98bn last year.

Coke said the strong dollar would cause its annual earnings to drop by 7%.

Although North America is the company's biggest market, nearly half its revenue comes from other markets.

Revenue in North America rose only 1%, mostly driven by sales of energy drinks.

The profits were $6.8bn for the quarter, compared with $7.34bn for the third quarter of 2015.

The total earnings translate to 33 cents per share. The company's stock was trading 8% lower after the earnings release.

Coke has been trying to cut costs and expand its offering. A global shift away from fizzy drinks has eaten into the profits of many beverage companies.

Coke saw only a 3% rise in global soda sales over the quarter.

The trend, which has already begun to take hold in North America and Europe, is now becoming an issue in Asia.

In Asia, sales of sparkling drinks were up 3%, while still beverage sales were up 6%. Most of this was driven by juice and tea sales.