Pushback against U.S. President Donald Trump's hardline foreign policy and anti-immigration measures has led to a decline in Coca-Cola's sales. The company noted that it could maintain its goals this year despite various concerns.
On the 29th (local time), according to The Wall Street Journal (WSJ) and the Financial Times (FT), Coca-Cola announced that its sales volume in North America fell by 3% in the first quarter of this year. According to a report by RBC Capital Markets, Coca-Cola's sales of carbonated beverages have particularly decreased over the past eight weeks. In the Latin American market, revenue stayed at a level similar to the same period last year, as sluggish performance continued in countries like Mexico and Chile.
According to WSJ, the decline in sales is analyzed to be influenced by the reduced purchases from Hispanic consumers. Recently, a video spread online claiming that Coca-Cola requested the U.S. Immigration and Customs Enforcement (ICE) to deport illegal immigrants, leading to a boycott movement. Chief Financial Officer (CFO) John Murphy said in an interview, "A weakness appeared in the Hispanic consumer group towards the end of the first quarter," adding that "the weakening purchasing power among overall customers negatively impacted sales."
Coca-Cola rebutted the claims, stating that the video was manipulated. It predicted that the actual impact would be minimal. CEO James Quincey told investors that “the false video has nearly lost its viral effect, and its impact on the business is not significant,” adding that “although false information and malicious campaigns may continue, we are focusing on recovery.”
A boycott movement has also been detected in Denmark. Consumers are boycotting Coca-Cola in response to President Trump's threats to acquire Greenland. Carlsberg, which bottles Coca-Cola in Denmark, reported a slight decline in Coca-Cola sales. Carlsberg CEO Jakob Orupe-Andersen noted, "There is a consumer boycott phenomenon surrounding the American brand, and Denmark is the only market where this phenomenon is quite evident."
According to FT, sales of domestic cola in Denmark have increased as Coca-Cola sales decline. Danish supermarket chain REMA reported that sales of the local carbonated beverage brand “Jolly Cola” surged 13 times compared to the same period last year in March.
To overcome this, Coca-Cola is emphasizing the positive effects it has on local economies and pursuing strategies to enhance price competitiveness through promotional discounts. The company also stated it would maintain its 2025 performance outlook. It further noted that it would not change its plans for price increases despite tariff impositions. CFO Murphy commented, "As an American corporation, we have experienced both tailwinds and headwinds, but we are implementing strategies to strengthen localization in each market."
On the same day, Coca-Cola also announced its first-quarter results. Sales recorded $11.13 billion (approximately 15.9 trillion won), a 2% decrease compared to the same period last year. The net income was $3.33 billion (approximately 4.76 trillion won), an increase from $3.18 billion (approximately 4.54 trillion won) in the same period last year.