Coca-Cola Q4 2025 The Coca-Cola Co Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 The Coca-Cola Co Earnings Call
Speaker #1: It both started at the Coca Cola Company in the same year over 30 years ago. And he's decade. He's worked across many functions, and has created value for our system on every continent where we do business.
Speaker #1: Braun, the next Chief Executive Officer of the
Speaker #1: Coca Cola Company.
Speaker #2: leadership during your tenure as James. CEO. And for your incredible I'd like to take a Good morning, everyone, and thank you, moment to thank you for your contribution to our system.
Speaker #2: You leave a legacy of returning our business to growth. It's a privilege to be the next Chief Executive Officer, and I look forward to partnering with you in your ongoing role as Chairman.
Speaker #2: Now I'd like to discuss our 2025 performance. Despite a complex we delivered on our initial top-line and external environment in 2025, bottom-line guidance set last February.
Speaker #2: We also continued our streak of gaining value share for the last 19 quarters. Organic revenue growth was in line with our long-term growth algorithm.
Speaker #2: While unit case volume was flat in 2025, we ended the year with better momentum, as volume improved each month during the fourth quarter. If you take a step back, we have a long track record of navigating complex external dynamics to hold or grow volume each year.
Speaker #2: Over years, annual volume declined only the past 50 once, and that was during the out the P&L, ongoing efficiency and comparable operating margin expansion in 2025.
Speaker #2: Which contributed to 4% pandemic effectiveness. Initiatives drove strong rounding growth despite 5 points of currency headwinds and a comparable effective tax rate, with a 2-point increase in our rate.
Speaker #2: During the fourth quarter, we grew volume despite cycling a tougher comparison versus the prior year. We build our system for the year comparable earnings per share ahead, as well as for the long term.
Speaker #2: Starting with North America. We delivered continued to invest to continued macroeconomic pressure on strong results despite We gained both volume and value share and grew operating income.
Speaker #2: We lower-income consumers. had broad-based strength across our total average portfolio, as trademark Coca Cola Sprite Zero Fresca The Sunny Fairlife Body Armor trademark and Powerade each grew volume.
Speaker #2: Innovation contributed to our growth, as the Sprite Chill and volume, revenue, and comparable Coca Holiday Creamy Vanilla had strong performance. Across our portfolio, our system focused on accelerating cold drink expanding availability of of visible are lifting and shifting inventory.
James Quincey: He both started at the Coca-Cola Company in the same year over 30 years ago, and he's been an invaluable partner to me over the past decade. He's worked across many functions and has created value for our system on every continent where we do business. The best days for our system continue to be ahead of us, and I'm confident we'll capture these opportunities under Henrique's leadership. So, without further ado, I'll pass the call off to Henrique Braun, the next Chief Executive Officer of the Coca-Cola Company.
James Quincey: He both started at the Coca-Cola Company in the same year over 30 years ago, and he's been an invaluable partner to me over the past decade. He's worked across many functions and has created value for our system on every continent where we do business. The best days for our system continue to be ahead of us, and I'm confident we'll capture these opportunities under Henrique's leadership. So, without further ado, I'll pass the call off to Henrique Braun, the next Chief Executive Officer of the Coca-Cola Company.
James Quincey: He both started at the Coca-Cola Company in the same year over 30 years ago, and he's been an invaluable partner to me over the past decade. He's worked across many functions and has created value for our system on every continent where we do business. The best days for our system continue to be ahead of us, and I'm confident we'll capture these opportunities under Henrique's leadership. So, without further ado, I'll pass the call off to Henrique Braun, the next Chief Executive Officer of the Coca-Cola Company.
James Quincey: He both started at the Coca-Cola Company in the same year over 30 years ago, and he's been an invaluable partner to me over the past decade. He's worked across many functions and has created value for our system on every continent where we do business. The best days for our system continue to be ahead of us, and I'm confident we'll capture these opportunities under Henrique's leadership. So, without further ado, I'll pass the call off to Henrique Braun, the next Chief Executive Officer of the Coca-Cola Company.
Henrique Braun: Good morning, everyone, and thank you, James. I'd like to take a moment to thank you for your leadership during your tenure as CEO and for your incredible contribution to our system. You leave a legacy of returning our business to growth. It's a privilege to be the next Chief Executive Officer, and I look forward to partnering with you in your ongoing role as the Chairman. Now I'd like to discuss our 2025 performance. Despite a complex external environment in 2025, we delivered on our initial top-line and bottom-line guidance set last February. We also continued our streak of gaining value share for the last 19 quarters. Organic revenue growth was in line with our long-term growth algorithm. While unit case volume was flat in 2025, we ended the year with better momentum as volume improved each month during Q4.
Henrique Braun: Good morning, everyone, and thank you, James. I'd like to take a moment to thank you for your leadership during your tenure as CEO and for your incredible contribution to our system. You leave a legacy of returning our business to growth. It's a privilege to be the next Chief Executive Officer, and I look forward to partnering with you in your ongoing role as the Chairman. Now I'd like to discuss our 2025 performance. Despite a complex external environment in 2025, we delivered on our initial top-line and bottom-line guidance set last February. We also continued our streak of gaining value share for the last 19 quarters. Organic revenue growth was in line with our long-term growth algorithm. While unit case volume was flat in 2025, we ended the year with better momentum as volume improved each month during Q4.
Henrique Braun: Good morning, everyone, and thank you, James. I'd like to take a moment to thank you for your leadership during your tenure as CEO and for your incredible contribution to our system. You leave a legacy of returning our business to growth. It's a privilege to be the next Chief Executive Officer, and I look forward to partnering with you in your ongoing role as the Chairman. Now I'd like to discuss our 2025 performance. Despite a complex external environment in 2025, we delivered on our initial top-line and bottom-line guidance set last February. We also continued our streak of gaining value share for the last 19 quarters. Organic revenue growth was in line with our long-term growth algorithm. While unit case volume was flat in 2025, we ended the year with better momentum as volume improved each month during Q4.
Henrique Braun: Good morning, everyone, and thank you, James. I'd like to take a moment to thank you for your leadership during your tenure as CEO and for your incredible contribution to our system. You leave a legacy of returning our business to growth. It's a privilege to be the next Chief Executive Officer, and I look forward to partnering with you in your ongoing role as the Chairman. Now I'd like to discuss our 2025 performance. Despite a complex external environment in 2025, we delivered on our initial top-line and bottom-line guidance set last February. We also continued our streak of gaining value share for the last 19 quarters. Organic revenue growth was in line with our long-term growth algorithm. While unit case volume was flat in 2025, we ended the year with better momentum as volume improved each month during Q4.
Henrique Braun: If you take a step back, we have a long track record of navigating complex external dynamics to hold or grow volume each year. Over the past 50 years, annual volume declined only once, and that was during the pandemic. Rounding out the P&L, ongoing efficiency and effectiveness initiatives drove strong comparable operating margin expansion in 2025, which contributed to 4% comparable earnings per share growth despite 5 points of currency headwinds and a 2-point increase in our comparable effective tax rate. During Q4, we grew volume despite cycling a tougher comparison versus the prior year. We continued to invest to build our system for the year ahead, as well as for the long term, starting with North America. We delivered strong results despite continued macroeconomic pressure on lower-income consumers. We gained both volume and value share and grew volume, revenue, and comparable operating income.
Henrique Braun: If you take a step back, we have a long track record of navigating complex external dynamics to hold or grow volume each year. Over the past 50 years, annual volume declined only once, and that was during the pandemic. Rounding out the P&L, ongoing efficiency and effectiveness initiatives drove strong comparable operating margin expansion in 2025, which contributed to 4% comparable earnings per share growth despite 5 points of currency headwinds and a 2-point increase in our comparable effective tax rate. During Q4, we grew volume despite cycling a tougher comparison versus the prior year. We continued to invest to build our system for the year ahead, as well as for the long term, starting with North America. We delivered strong results despite continued macroeconomic pressure on lower-income consumers. We gained both volume and value share and grew volume, revenue, and comparable operating income.
Henrique Braun: If you take a step back, we have a long track record of navigating complex external dynamics to hold or grow volume each year. Over the past 50 years, annual volume declined only once, and that was during the pandemic. Rounding out the P&L, ongoing efficiency and effectiveness initiatives drove strong comparable operating margin expansion in 2025, which contributed to 4% comparable earnings per share growth despite 5 points of currency headwinds and a 2-point increase in our comparable effective tax rate. During Q4, we grew volume despite cycling a tougher comparison versus the prior year. We continued to invest to build our system for the year ahead, as well as for the long term, starting with North America. We delivered strong results despite continued macroeconomic pressure on lower-income consumers. We gained both volume and value share and grew volume, revenue, and comparable operating income.
Henrique Braun: If you take a step back, we have a long track record of navigating complex external dynamics to hold or grow volume each year. Over the past 50 years, annual volume declined only once, and that was during the pandemic. Rounding out the P&L, ongoing efficiency and effectiveness initiatives drove strong comparable operating margin expansion in 2025, which contributed to 4% comparable earnings per share growth despite 5 points of currency headwinds and a 2-point increase in our comparable effective tax rate. During Q4, we grew volume despite cycling a tougher comparison versus the prior year. We continued to invest to build our system for the year ahead, as well as for the long term, starting with North America. We delivered strong results despite continued macroeconomic pressure on lower-income consumers. We gained both volume and value share and grew volume, revenue, and comparable operating income.
Henrique Braun: We had broad-based strength across our total beverage portfolio as trademark Coca-Cola, Sprite Zero, Fresca, Dasani, fairlife, BODYARMOR trademark, and POWERADE each grew volume. Innovation contributed to our growth as Sprite Chill and Coca-Cola Holiday Creamy Vanilla had strong performance. Across our portfolio, our system focused on accelerating cold drink equipment placement, expanding availability of value offerings, and winning share of visible inventory. In Latin America, we are lifting and shifting learning from across our markets and leveraging our system's capability to navigate the challenging external environment. During the fourth quarter, we managed to gain value share and grow volume, revenue, and comparable currency neutral operating income. Both Coca-Cola Zero Sugar and Sprite Zero Sugar had strong performance, and Santa Clara, our value-added dairy brand in Mexico, became another addition to our staple billion-dollar brand.
Henrique Braun: We had broad-based strength across our total beverage portfolio as trademark Coca-Cola, Sprite Zero, Fresca, Dasani, fairlife, BODYARMOR trademark, and POWERADE each grew volume. Innovation contributed to our growth as Sprite Chill and Coca-Cola Holiday Creamy Vanilla had strong performance. Across our portfolio, our system focused on accelerating cold drink equipment placement, expanding availability of value offerings, and winning share of visible inventory. In Latin America, we are lifting and shifting learning from across our markets and leveraging our system's capability to navigate the challenging external environment. During the fourth quarter, we managed to gain value share and grow volume, revenue, and comparable currency neutral operating income. Both Coca-Cola Zero Sugar and Sprite Zero Sugar had strong performance, and Santa Clara, our value-added dairy brand in Mexico, became another addition to our staple billion-dollar brand.
Henrique Braun: We had broad-based strength across our total beverage portfolio as trademark Coca-Cola, Sprite Zero, Fresca, Dasani, fairlife, BODYARMOR trademark, and POWERADE each grew volume. Innovation contributed to our growth as Sprite Chill and Coca-Cola Holiday Creamy Vanilla had strong performance. Across our portfolio, our system focused on accelerating cold drink equipment placement, expanding availability of value offerings, and winning share of visible inventory. In Latin America, we are lifting and shifting learning from across our markets and leveraging our system's capability to navigate the challenging external environment. During the fourth quarter, we managed to gain value share and grow volume, revenue, and comparable currency neutral operating income. Both Coca-Cola Zero Sugar and Sprite Zero Sugar had strong performance, and Santa Clara, our value-added dairy brand in Mexico, became another addition to our staple billion-dollar brand.
Henrique Braun: We had broad-based strength across our total beverage portfolio as trademark Coca-Cola, Sprite Zero, Fresca, Dasani, fairlife, BODYARMOR trademark, and POWERADE each grew volume. Innovation contributed to our growth as Sprite Chill and Coca-Cola Holiday Creamy Vanilla had strong performance. Across our portfolio, our system focused on accelerating cold drink equipment placement, expanding availability of value offerings, and winning share of visible inventory. In Latin America, we are lifting and shifting learning from across our markets and leveraging our system's capability to navigate the challenging external environment. During the fourth quarter, we managed to gain value share and grow volume, revenue, and comparable currency neutral operating income. Both Coca-Cola Zero Sugar and Sprite Zero Sugar had strong performance, and Santa Clara, our value-added dairy brand in Mexico, became another addition to our staple billion-dollar brand.
Henrique Braun: To drive consumer demand, we tapped into key passion points by linking Fanta with Halloween. We also continue to focus on refillable packaging, value offerings, and attractive absolute price points across our portfolio. In EMEA, we gained value share and grew volume and revenue. In Europe, volume declined as the quarter started slowly before recovery. To drive transactions, we activated several campaigns focused on the holiday and the upcoming Winter Olympics. In the UK, we leveraged our English Premier League partnership to engage consumers with customized product offerings. In Italy, to kick off the Winter Olympics torch relay, we launched a music festival in Rome, and our Coca-Cola truck followed the Olympic flame across key towns and cities ahead of the game. In Eurasia, the Middle East, and in Africa, we grew volume in both operating units.
Henrique Braun: To drive consumer demand, we tapped into key passion points by linking Fanta with Halloween. We also continue to focus on refillable packaging, value offerings, and attractive absolute price points across our portfolio. In EMEA, we gained value share and grew volume and revenue. In Europe, volume declined as the quarter started slowly before recovery. To drive transactions, we activated several campaigns focused on the holiday and the upcoming Winter Olympics. In the UK, we leveraged our English Premier League partnership to engage consumers with customized product offerings. In Italy, to kick off the Winter Olympics torch relay, we launched a music festival in Rome, and our Coca-Cola truck followed the Olympic flame across key towns and cities ahead of the game. In Eurasia, the Middle East, and in Africa, we grew volume in both operating units.
Henrique Braun: To drive consumer demand, we tapped into key passion points by linking Fanta with Halloween. We also continue to focus on refillable packaging, value offerings, and attractive absolute price points across our portfolio. In EMEA, we gained value share and grew volume and revenue. In Europe, volume declined as the quarter started slowly before recovery. To drive transactions, we activated several campaigns focused on the holiday and the upcoming Winter Olympics. In the UK, we leveraged our English Premier League partnership to engage consumers with customized product offerings. In Italy, to kick off the Winter Olympics torch relay, we launched a music festival in Rome, and our Coca-Cola truck followed the Olympic flame across key towns and cities ahead of the game. In Eurasia, the Middle East, and in Africa, we grew volume in both operating units.
Henrique Braun: To drive consumer demand, we tapped into key passion points by linking Fanta with Halloween. We also continue to focus on refillable packaging, value offerings, and attractive absolute price points across our portfolio. In EMEA, we gained value share and grew volume and revenue. In Europe, volume declined as the quarter started slowly before recovery. To drive transactions, we activated several campaigns focused on the holiday and the upcoming Winter Olympics. In the UK, we leveraged our English Premier League partnership to engage consumers with customized product offerings. In Italy, to kick off the Winter Olympics torch relay, we launched a music festival in Rome, and our Coca-Cola truck followed the Olympic flame across key towns and cities ahead of the game. In Eurasia, the Middle East, and in Africa, we grew volume in both operating units.
Both Coca-Cola, zero sugar, and Sprite, Zero sugar, have strong performance, and Santa Clara our value added Dairy. Brand in Mexico became another addition to our stable of billion dollar brands.
To drive consumer demands. We tapped into deep passion points by linking, Santa with Halloween. We also continue to focus on refillable packaging value offerings and attractive absolute price points across our portfolio.
In here, we gained value, share and grew volume in Revenue.
In Europe, volume declined as the quarter started. Slowly, before recovery to drive transactions, we activated several campaigns focused on the holiday and the upcoming Winter Olympics.
In the UK, we leverage our English Premier League partnership to engage consumers with customized product offerings.
Olympics starts relay, we launched a music festival in Rome and our Coca-Cola truck. Followed the Olympic flame across kit towns and cities ahead of the game.
Henrique Braun: We tapped into key innovations grounded in local consumer insights like Sprite Lemon-Mint in the Middle East and had impactful marketing campaigns like Schweppes Born Social 2.0, and Share a Coke in Nigeria. Our efforts to highlight the localness of our system and sharpen our revenue growth management capabilities led to volume growth in both operating units in 2025. Lastly, in Asia-Pacific, we gained value share and had flat volume. However, revenue and profit declined during the quarter. Volume growth in Japan was offset by declines elsewhere, driven primarily by softer consumer spending, weaker industry performance, and cycling strong growth in the prior year. We are continuing to invest in long-term growth opportunities across Asia-Pacific, and we are implementing granular channel execution plans and tailoring our Brand Price Pack Architecture with a focus on attractive absolute price points and value offerings.
Henrique Braun: We tapped into key innovations grounded in local consumer insights like Sprite Lemon-Mint in the Middle East and had impactful marketing campaigns like Schweppes Born Social 2.0, and Share a Coke in Nigeria. Our efforts to highlight the localness of our system and sharpen our revenue growth management capabilities led to volume growth in both operating units in 2025. Lastly, in Asia-Pacific, we gained value share and had flat volume. However, revenue and profit declined during the quarter. Volume growth in Japan was offset by declines elsewhere, driven primarily by softer consumer spending, weaker industry performance, and cycling strong growth in the prior year. We are continuing to invest in long-term growth opportunities across Asia-Pacific, and we are implementing granular channel execution plans and tailoring our Brand Price Pack Architecture with a focus on attractive absolute price points and value offerings.
Henrique Braun: We tapped into key innovations grounded in local consumer insights like Sprite Lemon-Mint in the Middle East and had impactful marketing campaigns like Schweppes Born Social 2.0, and Share a Coke in Nigeria. Our efforts to highlight the localness of our system and sharpen our revenue growth management capabilities led to volume growth in both operating units in 2025. Lastly, in Asia-Pacific, we gained value share and had flat volume. However, revenue and profit declined during the quarter. Volume growth in Japan was offset by declines elsewhere, driven primarily by softer consumer spending, weaker industry performance, and cycling strong growth in the prior year. We are continuing to invest in long-term growth opportunities across Asia-Pacific, and we are implementing granular channel execution plans and tailoring our Brand Price Pack Architecture with a focus on attractive absolute price points and value offerings.
Henrique Braun: We tapped into key innovations grounded in local consumer insights like Sprite Lemon-Mint in the Middle East and had impactful marketing campaigns like Schweppes Born Social 2.0, and Share a Coke in Nigeria. Our efforts to highlight the localness of our system and sharpen our revenue growth management capabilities led to volume growth in both operating units in 2025. Lastly, in Asia-Pacific, we gained value share and had flat volume. However, revenue and profit declined during the quarter. Volume growth in Japan was offset by declines elsewhere, driven primarily by softer consumer spending, weaker industry performance, and cycling strong growth in the prior year. We are continuing to invest in long-term growth opportunities across Asia-Pacific, and we are implementing granular channel execution plans and tailoring our Brand Price Pack Architecture with a focus on attractive absolute price points and value offerings.
In the region, in the Middle East and in Africa, we grew volume in both operating units.
We tapped into key innovations grounded in local consumer insights, like Sprite Lemon Mint in the Middle East, and had impactful marketing campaigns like Schweppes Orange, Social 2.0, and Share a Coke in Nigeria.
Our efforts to highlight the Loess of our system and sharpen our Revenue growth management capabilities led to volume growth in both operating units in 2025.
Lastly, in Asia Pacific, we gained via and had flat phone.
However, revenue and profit declined during the quarter volume growth. In Japan was upset by the clients elsewhere driven primarily by software consumer spending weaker industry performance, and cycling strong growth, in the prior year.
Henrique Braun: In summary, we are responding to differing dynamics across our markets by adapting faster, leveraging our portfolio power, and investing for growth. As I prepare to step into the CEO role and think about what's next, there will be a balance between continuing what's working and evolving where we can to become more effective and efficient. While we are proud of what we have accomplished, future success is never guaranteed. We must remain discontented. Every day, our system needs to focus on being a little bit better and sharper everywhere to drive transformational impact. We have enduring strength, which includes an incredible foundation of $32 billion brands and unmatched system reach. Our mission is both to increase this number of billion-dollar brands and to turn today's billion-dollar brands into tomorrow's multi-billion-dollar brands. To drive further quality leadership, I'm excited about three key areas.
Henrique Braun: In summary, we are responding to differing dynamics across our markets by adapting faster, leveraging our portfolio power, and investing for growth. As I prepare to step into the CEO role and think about what's next, there will be a balance between continuing what's working and evolving where we can to become more effective and efficient. While we are proud of what we have accomplished, future success is never guaranteed. We must remain discontented. Every day, our system needs to focus on being a little bit better and sharper everywhere to drive transformational impact. We have enduring strength, which includes an incredible foundation of $32 billion brands and unmatched system reach. Our mission is both to increase this number of billion-dollar brands and to turn today's billion-dollar brands into tomorrow's multi-billion-dollar brands. To drive further quality leadership, I'm excited about three key areas.
Henrique Braun: In summary, we are responding to differing dynamics across our markets by adapting faster, leveraging our portfolio power, and investing for growth. As I prepare to step into the CEO role and think about what's next, there will be a balance between continuing what's working and evolving where we can to become more effective and efficient. While we are proud of what we have accomplished, future success is never guaranteed. We must remain discontented. Every day, our system needs to focus on being a little bit better and sharper everywhere to drive transformational impact. We have enduring strength, which includes an incredible foundation of $32 billion brands and unmatched system reach. Our mission is both to increase this number of billion-dollar brands and to turn today's billion-dollar brands into tomorrow's multi-billion-dollar brands. To drive further quality leadership, I'm excited about three key areas.
Henrique Braun: In summary, we are responding to differing dynamics across our markets by adapting faster, leveraging our portfolio power, and investing for growth. As I prepare to step into the CEO role and think about what's next, there will be a balance between continuing what's working and evolving where we can to become more effective and efficient. While we are proud of what we have accomplished, future success is never guaranteed. We must remain discontented. Every day, our system needs to focus on being a little bit better and sharper everywhere to drive transformational impact. We have enduring strength, which includes an incredible foundation of $32 billion brands and unmatched system reach. Our mission is both to increase this number of billion-dollar brands and to turn today's billion-dollar brands into tomorrow's multi-billion-dollar brands. To drive further quality leadership, I'm excited about three key areas.
We are continuing to invest in long-term growth opportunities across Asia Pacific. And we are implementing granular channel execution plans and tailoring our brand-price-pack architecture with a focus on attractive absolute price points and value offerings.
We are responding to different dynamics across our markets by adapting faster, leveraging our portfolio power, and investing for growth.
As I prepare to step into the CEO role and think about, what's next?
There will be a balance between continuing. What's working and evolving, where we can to become more effective and efficient while we are proud of what we have accomplished,
Future success is never guaranteed. We must remain discontented every day. Our system needs to focus on being a little bit better, and sharper everywhere, to drive transformation and impact.
We have enduring strengths which includes an incredible Foundation of 32 billion dollar Brands and unmatched system. Reach our mission is both to increase this number of billion dollar Brands and to turn today's billion dollar Brands into tomorrow's multi-billion dollar brand.
Henrique Braun: First, we will aim to step-change recruitment, especially with young adults consumers, by better integrating our marketing campaigns with commercial execution at the point of sale. We already have a good starting point. In the US, for example, we have 10 of the top 20 beverage brands for young adult drinkers, including Coca-Cola, which is the number one beverage brand. Second, we need to get closer to the consumer and improve our speed to market. While we have made some progress with our overall success rates over the past several years, our innovation today is not where it needs to be. We are striving to better anticipate the next growth opportunity in beverages and shape what comes next, driven by our deep consumer insight. Third, I am energized about steering our Future-Ready system.
Henrique Braun: First, we will aim to step-change recruitment, especially with young adults consumers, by better integrating our marketing campaigns with commercial execution at the point of sale. We already have a good starting point. In the US, for example, we have 10 of the top 20 beverage brands for young adult drinkers, including Coca-Cola, which is the number one beverage brand. Second, we need to get closer to the consumer and improve our speed to market. While we have made some progress with our overall success rates over the past several years, our innovation today is not where it needs to be. We are striving to better anticipate the next growth opportunity in beverages and shape what comes next, driven by our deep consumer insight. Third, I am energized about steering our Future-Ready system.
Henrique Braun: First, we will aim to step-change recruitment, especially with young adults consumers, by better integrating our marketing campaigns with commercial execution at the point of sale. We already have a good starting point. In the US, for example, we have 10 of the top 20 beverage brands for young adult drinkers, including Coca-Cola, which is the number one beverage brand. Second, we need to get closer to the consumer and improve our speed to market. While we have made some progress with our overall success rates over the past several years, our innovation today is not where it needs to be. We are striving to better anticipate the next growth opportunity in beverages and shape what comes next, driven by our deep consumer insight. Third, I am energized about steering our Future-Ready system.
Henrique Braun: First, we will aim to step-change recruitment, especially with young adults consumers, by better integrating our marketing campaigns with commercial execution at the point of sale. We already have a good starting point. In the US, for example, we have 10 of the top 20 beverage brands for young adult drinkers, including Coca-Cola, which is the number one beverage brand. Second, we need to get closer to the consumer and improve our speed to market. While we have made some progress with our overall success rates over the past several years, our innovation today is not where it needs to be. We are striving to better anticipate the next growth opportunity in beverages and shape what comes next, driven by our deep consumer insight. Third, I am energized about steering our Future-Ready system.
To drive for the quality leadership. I'm excited about 3. TS, first, we will aim to step change recruitment.
especially with young adults, consumers by better integrating, our marketing campaigns with commercial execution at the point of sale,
We already have a good starting point.
In the US, for example, we have 10 of the top 20 beverage brands for young adult drinkers including Coca-Cola, which is the number 1 beverage brand.
Second, we need to get closer to the consumer and improve our speed to market. While we have made some progress with our overall success rates over the past several years, our innovation today is not where it needs to be. We are striving to better anticipate the next growth opportunity in beverages—in shape, what comes next—driven by our deep consumer insight.
Henrique Braun: We must be intentional about putting digital at the core of every connection with consumers, customers, and across the system. The better-than-ever alignment that we have today with our bottling partners is simply the starting point. Putting it all together, we'll look to continue expanding our horizons and shape our future. We have a durable strategy, and our runway is long. I'm confident we will deliver on our 2026 guidance and capture the vast opportunities available. I look forward to sharing more details on how we are thinking about evolving our culture and our enterprise to fuel a new decade of growth next week at CAGNY. With that, I will turn the call over to John to discuss 2025 performance and guidance for 2026.
Henrique Braun: We must be intentional about putting digital at the core of every connection with consumers, customers, and across the system. The better-than-ever alignment that we have today with our bottling partners is simply the starting point. Putting it all together, we'll look to continue expanding our horizons and shape our future. We have a durable strategy, and our runway is long. I'm confident we will deliver on our 2026 guidance and capture the vast opportunities available. I look forward to sharing more details on how we are thinking about evolving our culture and our enterprise to fuel a new decade of growth next week at CAGNY. With that, I will turn the call over to John to discuss 2025 performance and guidance for 2026.
Henrique Braun: We must be intentional about putting digital at the core of every connection with consumers, customers, and across the system. The better-than-ever alignment that we have today with our bottling partners is simply the starting point. Putting it all together, we'll look to continue expanding our horizons and shape our future. We have a durable strategy, and our runway is long. I'm confident we will deliver on our 2026 guidance and capture the vast opportunities available. I look forward to sharing more details on how we are thinking about evolving our culture and our enterprise to fuel a new decade of growth next week at CAGNY. With that, I will turn the call over to John to discuss 2025 performance and guidance for 2026.
Henrique Braun: We must be intentional about putting digital at the core of every connection with consumers, customers, and across the system. The better-than-ever alignment that we have today with our bottling partners is simply the starting point. Putting it all together, we'll look to continue expanding our horizons and shape our future. We have a durable strategy, and our runway is long. I'm confident we will deliver on our 2026 guidance and capture the vast opportunities available. I look forward to sharing more details on how we are thinking about evolving our culture and our enterprise to fuel a new decade of growth next week at CAGNY. With that, I will turn the call over to John to discuss 2025 performance and guidance for 2026.
Third, I am energized about steering our future Red System.
We must be intentional about putting digital at the core of every connection with consumers, customers, and across the system. The better-than-ever alignment that we have today with our bottling partners is simply the starting point.
Putting it all together, we look to continue expanding our horizons and shape our future. We have a durable strategy and our runway is long. I'm confident we will deliver on our 2026 guidance and capture the vast opportunities available. I look forward to sharing more details on how we're thinking about evolving our culture, and our enterprise to fuel a new decade of growth next week at Kagan.
John Murphy: Thank you, Henrique, and good morning, everyone. First, I'd like to recognize James and congratulate him for his tremendous career and amazing leadership as our CEO. It's been an absolute honor working alongside you. I'm also confident in the company's future as Henrique steps into the CEO role. Looking back at 2025, we remained agile and focused on improving execution of our strategy to deliver on our guidance. During Q4, we grew organic revenues 5%. Unit case growth was 1%. Concentrate sales grew 3 points ahead of unit cases, driven primarily by the timing of concentrate shipments and an extra day in the quarter. Our price mix growth of 1% was primarily driven by approximately 4 points of pricing actions, offset by 3 points of unfavorable mix, which was driven by an unusual combination of business mix, category mix, and timing of a number of items.
John Murphy: Thank you, Henrique, and good morning, everyone. First, I'd like to recognize James and congratulate him for his tremendous career and amazing leadership as our CEO. It's been an absolute honor working alongside you. I'm also confident in the company's future as Henrique steps into the CEO role. Looking back at 2025, we remained agile and focused on improving execution of our strategy to deliver on our guidance. During Q4, we grew organic revenues 5%. Unit case growth was 1%. Concentrate sales grew 3 points ahead of unit cases, driven primarily by the timing of concentrate shipments and an extra day in the quarter. Our price mix growth of 1% was primarily driven by approximately 4 points of pricing actions, offset by 3 points of unfavorable mix, which was driven by an unusual combination of business mix, category mix, and timing of a number of items.
John Murphy: Thank you, Henrique, and good morning, everyone. First, I'd like to recognize James and congratulate him for his tremendous career and amazing leadership as our CEO. It's been an absolute honor working alongside you. I'm also confident in the company's future as Henrique steps into the CEO role. Looking back at 2025, we remained agile and focused on improving execution of our strategy to deliver on our guidance. During Q4, we grew organic revenues 5%. Unit case growth was 1%. Concentrate sales grew 3 points ahead of unit cases, driven primarily by the timing of concentrate shipments and an extra day in the quarter. Our price mix growth of 1% was primarily driven by approximately 4 points of pricing actions, offset by 3 points of unfavorable mix, which was driven by an unusual combination of business mix, category mix, and timing of a number of items.
John Murphy: Thank you, Henrique, and good morning, everyone. First, I'd like to recognize James and congratulate him for his tremendous career and amazing leadership as our CEO. It's been an absolute honor working alongside you. I'm also confident in the company's future as Henrique steps into the CEO role. Looking back at 2025, we remained agile and focused on improving execution of our strategy to deliver on our guidance. During Q4, we grew organic revenues 5%. Unit case growth was 1%. Concentrate sales grew 3 points ahead of unit cases, driven primarily by the timing of concentrate shipments and an extra day in the quarter. Our price mix growth of 1% was primarily driven by approximately 4 points of pricing actions, offset by 3 points of unfavorable mix, which was driven by an unusual combination of business mix, category mix, and timing of a number of items.
With that, I will turn the call over to John to discuss 2025 performance and guidance for 2026.
Thank you, henrique, and good morning, everyone.
Of course, I'd like to recognize James and congratulate him for his tremendous career and amazing leadership as our CEO.
It's been an absolute honor working alongside you.
Enrique steps into the CEO role.
Looking back at 2025, we remained agile and focused on improving execution of our strategy to deliver on our guidance.
During the fourth quarter, we grew organic revenues 5%.
Unit case, growth was 1%, concentrate sales grew 3 points. Ahead of unit cases.
Driven primarily by the timing of concentrate shipments and an extra day in the quarter.
A price/mix growth of 1% was primarily driven by approximately 4 points of pricing actions, offset by 3 points of unfavorable mix.
Which was driven by an unusual combination of business makes category mix.
And timing.
Of a number of items.
John Murphy: Comparable gross margin and comparable operating margin both increased approximately 50 basis points. Both were driven by underlying expansion, partially offset by currency headwinds. Putting it all together, fourth quarter comparable EPS of $0.58 was up 6% year-over-year despite 5% currency headwinds and an increase in our comparable effective tax rate. Free cash flow, excluding the fairlife contingent consideration payment, was $11.4 billion in 2025, which is an increase of approximately $600 million versus the prior year's free cash flow, excluding the IRS tax deposit. Growth was driven by underlying business performance and lower tax payments versus the prior year. Adjusted Free Cash Flow conversion in 2025 was 93%, in line with our long-term targeted range for the third consecutive year. Our balance sheet remains strong, with our net debt leverage of 1.6x EBITDA, which is below our targeted range of 2 to 2.5x.
John Murphy: Comparable gross margin and comparable operating margin both increased approximately 50 basis points. Both were driven by underlying expansion, partially offset by currency headwinds. Putting it all together, fourth quarter comparable EPS of $0.58 was up 6% year-over-year despite 5% currency headwinds and an increase in our comparable effective tax rate. Free cash flow, excluding the fairlife contingent consideration payment, was $11.4 billion in 2025, which is an increase of approximately $600 million versus the prior year's free cash flow, excluding the IRS tax deposit. Growth was driven by underlying business performance and lower tax payments versus the prior year. Adjusted Free Cash Flow conversion in 2025 was 93%, in line with our long-term targeted range for the third consecutive year. Our balance sheet remains strong, with our net debt leverage of 1.6x EBITDA, which is below our targeted range of 2 to 2.5x.
John Murphy: Comparable gross margin and comparable operating margin both increased approximately 50 basis points. Both were driven by underlying expansion, partially offset by currency headwinds. Putting it all together, fourth quarter comparable EPS of $0.58 was up 6% year-over-year despite 5% currency headwinds and an increase in our comparable effective tax rate. Free cash flow, excluding the fairlife contingent consideration payment, was $11.4 billion in 2025, which is an increase of approximately $600 million versus the prior year's free cash flow, excluding the IRS tax deposit. Growth was driven by underlying business performance and lower tax payments versus the prior year. Adjusted Free Cash Flow conversion in 2025 was 93%, in line with our long-term targeted range for the third consecutive year. Our balance sheet remains strong, with our net debt leverage of 1.6x EBITDA, which is below our targeted range of 2 to 2.5x.
John Murphy: Comparable gross margin and comparable operating margin both increased approximately 50 basis points. Both were driven by underlying expansion, partially offset by currency headwinds. Putting it all together, fourth quarter comparable EPS of $0.58 was up 6% year-over-year despite 5% currency headwinds and an increase in our comparable effective tax rate. Free cash flow, excluding the fairlife contingent consideration payment, was $11.4 billion in 2025, which is an increase of approximately $600 million versus the prior year's free cash flow, excluding the IRS tax deposit. Growth was driven by underlying business performance and lower tax payments versus the prior year. Adjusted Free Cash Flow conversion in 2025 was 93%, in line with our long-term targeted range for the third consecutive year. Our balance sheet remains strong, with our net debt leverage of 1.6x EBITDA, which is below our targeted range of 2 to 2.5x.
Comparable, growth margin and comparable operating margin both increased approximately 50 basis points.
Both were driven by underlying expansion.
Partially offset by currency headwinds.
Putting it all together, fourth quarter comparable, EPS of 58 cents, was up 6% year-over-year despite 5% currency, headwinds and an increase in our comparable effective tax rate.
Free cash flow, excluding the fairlife contingent consideration payment, was $11.4 billion in 2025.
Which is an increase of approximately $600 million versus the prior year's free cash flow, excluding the IRS tax deposit.
Growth was driven by underlying business performance.
And lower tax payments versus the prior year. Adjusted free cash flow conversion in 2025 was 93%.
In line with our long-term targeted range for the third consecutive year.
Our balance sheet remains strong with our net debt, leverage of 1.6 times zabita.
John Murphy: We'll continue to judiciously manage our balance sheet as we await a court decision related to our ongoing dispute with the IRS. Enabled by our All-Weather Strategy, we have demonstrated our ability to navigate local market dynamics to deliver on our global objectives. Our 2026 guidance builds on the results we've achieved over the past several years. We expect Organic Revenue Growth of 4 to 5%, which is in line with our Long-Term Growth Algorithm. We also expect growth in Comparable Currency Neutral Earnings Per Share, excluding acquisitions and divestitures, of 5 to 6%. We continue to focus on investing behind our brands to drive balanced top-line growth, with volume as a key priority. Notwithstanding volatility in certain commodities and evolving global trade dynamics, we expect the overall impact on our cost basket to be manageable.
John Murphy: We'll continue to judiciously manage our balance sheet as we await a court decision related to our ongoing dispute with the IRS. Enabled by our All-Weather Strategy, we have demonstrated our ability to navigate local market dynamics to deliver on our global objectives. Our 2026 guidance builds on the results we've achieved over the past several years. We expect Organic Revenue Growth of 4 to 5%, which is in line with our Long-Term Growth Algorithm. We also expect growth in Comparable Currency Neutral Earnings Per Share, excluding acquisitions and divestitures, of 5 to 6%. We continue to focus on investing behind our brands to drive balanced top-line growth, with volume as a key priority. Notwithstanding volatility in certain commodities and evolving global trade dynamics, we expect the overall impact on our cost basket to be manageable.
John Murphy: We'll continue to judiciously manage our balance sheet as we await a court decision related to our ongoing dispute with the IRS. Enabled by our All-Weather Strategy, we have demonstrated our ability to navigate local market dynamics to deliver on our global objectives. Our 2026 guidance builds on the results we've achieved over the past several years. We expect Organic Revenue Growth of 4 to 5%, which is in line with our Long-Term Growth Algorithm. We also expect growth in Comparable Currency Neutral Earnings Per Share, excluding acquisitions and divestitures, of 5 to 6%. We continue to focus on investing behind our brands to drive balanced top-line growth, with volume as a key priority. Notwithstanding volatility in certain commodities and evolving global trade dynamics, we expect the overall impact on our cost basket to be manageable.
John Murphy: We'll continue to judiciously manage our balance sheet as we await a court decision related to our ongoing dispute with the IRS. Enabled by our All-Weather Strategy, we have demonstrated our ability to navigate local market dynamics to deliver on our global objectives. Our 2026 guidance builds on the results we've achieved over the past several years. We expect Organic Revenue Growth of 4 to 5%, which is in line with our Long-Term Growth Algorithm. We also expect growth in Comparable Currency Neutral Earnings Per Share, excluding acquisitions and divestitures, of 5 to 6%. We continue to focus on investing behind our brands to drive balanced top-line growth, with volume as a key priority. Notwithstanding volatility in certain commodities and evolving global trade dynamics, we expect the overall impact on our cost basket to be manageable.
Which is below our targeted range of 2 to 2.5 times.
We'll continue to toeic manage our balance sheet as we await a court decision related to our ongoing dispute with the IRS.
Enabled by our all-weather strategy, we have demonstrated our ability to navigate local market dynamics.
To deliver on our Global objectives, our 2026 guidance bills on the results with achieved over the past several years.
we expect organic Revenue growth of 4 to 5%, which is in line with our long-term growth algorithm
We also expect growth in comparable, currency neutral earnings per share. Excluding Acquisitions investors of 5 to 6%. We continue to focus on investing behind Our Brands to drive balanced Topline growth with volume as a key priority.
Notwithstanding volatility in certain Commodities and evolving global trade Dynamics.
We expect the overall impact on our class basket to be manageable.
John Murphy: Divestitures are expected to be an approximate 4-point headwind to comparable net revenues and an approximate 1-point headwind to comparable earnings per share. This assumes the pending sale of Coca-Cola Beverages Africa closes, subject to regulatory approvals during the second half of 2026, and includes the impact of divesting Chi Limited, which was our juice and value-added dairy finished product operations in Nigeria. Based on current rates and our hedged positions, we anticipate an approximate 1-point currency tailwind to comparable net revenues and an approximate 3-point currency tailwind to comparable earnings per share for full year 2026. Our underlying effective tax rate for 2026 is expected to be 20.9%. All in, we expect comparable earnings per share growth of 7 to 8% versus $3 in 2025.
John Murphy: Divestitures are expected to be an approximate 4-point headwind to comparable net revenues and an approximate 1-point headwind to comparable earnings per share. This assumes the pending sale of Coca-Cola Beverages Africa closes, subject to regulatory approvals during the second half of 2026, and includes the impact of divesting Chi Limited, which was our juice and value-added dairy finished product operations in Nigeria. Based on current rates and our hedged positions, we anticipate an approximate 1-point currency tailwind to comparable net revenues and an approximate 3-point currency tailwind to comparable earnings per share for full year 2026. Our underlying effective tax rate for 2026 is expected to be 20.9%. All in, we expect comparable earnings per share growth of 7 to 8% versus $3 in 2025.
John Murphy: Divestitures are expected to be an approximate 4-point headwind to comparable net revenues and an approximate 1-point headwind to comparable earnings per share. This assumes the pending sale of Coca-Cola Beverages Africa closes, subject to regulatory approvals during the second half of 2026, and includes the impact of divesting Chi Limited, which was our juice and value-added dairy finished product operations in Nigeria. Based on current rates and our hedged positions, we anticipate an approximate 1-point currency tailwind to comparable net revenues and an approximate 3-point currency tailwind to comparable earnings per share for full year 2026. Our underlying effective tax rate for 2026 is expected to be 20.9%. All in, we expect comparable earnings per share growth of 7 to 8% versus $3 in 2025.
John Murphy: Divestitures are expected to be an approximate 4-point headwind to comparable net revenues and an approximate 1-point headwind to comparable earnings per share. This assumes the pending sale of Coca-Cola Beverages Africa closes, subject to regulatory approvals during the second half of 2026, and includes the impact of divesting Chi Limited, which was our juice and value-added dairy finished product operations in Nigeria. Based on current rates and our hedged positions, we anticipate an approximate 1-point currency tailwind to comparable net revenues and an approximate 3-point currency tailwind to comparable earnings per share for full year 2026. Our underlying effective tax rate for 2026 is expected to be 20.9%. All in, we expect comparable earnings per share growth of 7 to 8% versus $3 in 2025.
The best tours are expected to be an approximate 4-point headwind to comparable net revenues.
And an approximate 1 point headwind to comparable earnings per share.
This assumes depending sales of Coca-Cola beverages Africa, closest subject to regulatory approvals during the second half of 2026.
And includes the impact of divesting, chi, which was our juice and value added Dairy, finished product operations in Nigeria.
Based on current rates and our hedge positions, we anticipate an approximate 1 Point currency Tailwind to comparable, net revenues.
And an approximate 3-point, currency Tailwind to comparable, earnings per share for full year 2026.
Our underlying effective tax rate for 2026 is expected to be 20.9%.
All in, we expect comparable earnings per share growth of 7 to 8%, versus $3.00 in 2025.
John Murphy: We also expect to generate approximately $12.2 billion of free cash flow in 2026 through approximately $14.4 billion in cash from operations, less approximately $2.2 billion in capital investments. Driven by our free cash flow generation, we have an unwavering commitment to reinvest in our business and grow our dividend. Approximately 25% of our expected 2026 capital investment relates to company-owned Bottlers, and the remaining capital investment is primarily growth-oriented, which includes building capacity for our concentrate, and finished goods businesses. For the past 63 years, we've grown our dividend. In 2025, dividends paid as a percentage of Adjusted Free Cash Flow was 73%, which is relatively in line with our long-term payout ratio of 75%. With respect to acquisitions and share repurchases, we'll stay both flexible and opportunistic. On acquisitions, while our track record has not been perfect, we have created a lot of value in aggregate.
John Murphy: We also expect to generate approximately $12.2 billion of free cash flow in 2026 through approximately $14.4 billion in cash from operations, less approximately $2.2 billion in capital investments. Driven by our free cash flow generation, we have an unwavering commitment to reinvest in our business and grow our dividend. Approximately 25% of our expected 2026 capital investment relates to company-owned Bottlers, and the remaining capital investment is primarily growth-oriented, which includes building capacity for our concentrate, and finished goods businesses. For the past 63 years, we've grown our dividend. In 2025, dividends paid as a percentage of Adjusted Free Cash Flow was 73%, which is relatively in line with our long-term payout ratio of 75%. With respect to acquisitions and share repurchases, we'll stay both flexible and opportunistic. On acquisitions, while our track record has not been perfect, we have created a lot of value in aggregate.
John Murphy: We also expect to generate approximately $12.2 billion of free cash flow in 2026 through approximately $14.4 billion in cash from operations, less approximately $2.2 billion in capital investments. Driven by our free cash flow generation, we have an unwavering commitment to reinvest in our business and grow our dividend. Approximately 25% of our expected 2026 capital investment relates to company-owned Bottlers, and the remaining capital investment is primarily growth-oriented, which includes building capacity for our concentrate, and finished goods businesses. For the past 63 years, we've grown our dividend. In 2025, dividends paid as a percentage of Adjusted Free Cash Flow was 73%, which is relatively in line with our long-term payout ratio of 75%. With respect to acquisitions and share repurchases, we'll stay both flexible and opportunistic. On acquisitions, while our track record has not been perfect, we have created a lot of value in aggregate.
John Murphy: We also expect to generate approximately $12.2 billion of free cash flow in 2026 through approximately $14.4 billion in cash from operations, less approximately $2.2 billion in capital investments. Driven by our free cash flow generation, we have an unwavering commitment to reinvest in our business and grow our dividend. Approximately 25% of our expected 2026 capital investment relates to company-owned Bottlers, and the remaining capital investment is primarily growth-oriented, which includes building capacity for our concentrate, and finished goods businesses. For the past 63 years, we've grown our dividend. In 2025, dividends paid as a percentage of Adjusted Free Cash Flow was 73%, which is relatively in line with our long-term payout ratio of 75%. With respect to acquisitions and share repurchases, we'll stay both flexible and opportunistic. On acquisitions, while our track record has not been perfect, we have created a lot of value in aggregate.
We also expect to generate approximately $12.2 billion of free cash flow in 2026.
Through approximately $14.4 billion in cash from operations.
Are dividend.
Approximately 25% of our expected 2026 capital investment.
Relates to company owned batteries.
And the remaining capital investment is primarily growth oriented which includes building capacity for our concentrate and finish Goods. Businesses.
For the past 63 years.
We've grown our dividend.
In 2025, dividends paid as a percentage of adjusted free. Cash flow was 73%.
Which is relatively in line with our long-term paired ratio of 75%.
With respect to Acquisitions and share repurchases.
We'll say both flexible and opportunistic.
On Acquisitions. While our track record has not been perfect.
John Murphy: Just over half of our portfolio of $32 billion brands was created inorganically. Most of these were bolt-on acquisitions that we later scaled ourselves. On share repurchases, we'll continue to repurchase shares to offset any dilution from the exercise of stock options by employees in the given year. Putting it all together, our capital allocation policy prioritizes both discipline and agility to drive the long-term health of our business and create value for our stakeholders. Finally, there are some considerations to keep in mind for 2026. First, due to a calendar shift in Q1, while we'll have six additional days, we expect approximately half of the benefit to be offset by concentrate shipment cycling and timing. Also, Q4 will have six fewer days. Additionally, we will have lost equity income due to divesting our interest in Coca-Cola Consolidated in November 2025.
John Murphy: Just over half of our portfolio of $32 billion brands was created inorganically. Most of these were bolt-on acquisitions that we later scaled ourselves. On share repurchases, we'll continue to repurchase shares to offset any dilution from the exercise of stock options by employees in the given year. Putting it all together, our capital allocation policy prioritizes both discipline and agility to drive the long-term health of our business and create value for our stakeholders. Finally, there are some considerations to keep in mind for 2026. First, due to a calendar shift in Q1, while we'll have six additional days, we expect approximately half of the benefit to be offset by concentrate shipment cycling and timing. Also, Q4 will have six fewer days. Additionally, we will have lost equity income due to divesting our interest in Coca-Cola Consolidated in November 2025.
John Murphy: Just over half of our portfolio of $32 billion brands was created inorganically. Most of these were bolt-on acquisitions that we later scaled ourselves. On share repurchases, we'll continue to repurchase shares to offset any dilution from the exercise of stock options by employees in the given year. Putting it all together, our capital allocation policy prioritizes both discipline and agility to drive the long-term health of our business and create value for our stakeholders. Finally, there are some considerations to keep in mind for 2026. First, due to a calendar shift in Q1, while we'll have six additional days, we expect approximately half of the benefit to be offset by concentrate shipment cycling and timing. Also, Q4 will have six fewer days. Additionally, we will have lost equity income due to divesting our interest in Coca-Cola Consolidated in November 2025.
John Murphy: Just over half of our portfolio of $32 billion brands was created inorganically. Most of these were bolt-on acquisitions that we later scaled ourselves. On share repurchases, we'll continue to repurchase shares to offset any dilution from the exercise of stock options by employees in the given year. Putting it all together, our capital allocation policy prioritizes both discipline and agility to drive the long-term health of our business and create value for our stakeholders. Finally, there are some considerations to keep in mind for 2026. First, due to a calendar shift in Q1, while we'll have six additional days, we expect approximately half of the benefit to be offset by concentrate shipment cycling and timing. Also, Q4 will have six fewer days. Additionally, we will have lost equity income due to divesting our interest in Coca-Cola Consolidated in November 2025.
Just over half of our portfolio of 32 billion-dollar brands.
Was created in organically.
Most of these were bought on acquisitions that we later scaled ourselves.
On share repurchases will continue to repurchase shares to offset. Any dilution from the exercise of stock options by employees in the given year.
Putting it all together, our Capital allocation policy, prioritizes both discipline and Agility.
To drive the long-term health of our business.
And create value for our stakeholders.
Finally, there are some considerations to keep in mind.
For 2026.
First.
Due to a calendar shift in the first quarter.
While we'll have 6 additional days.
We expect approximately half of the benefits to be offset by concentrate shipment, cycling and timing.
Also, the fourth quarter will have 6 fewer days.
Additionally, we will have lost Equity income due to divesting our interests in Coca-Cola Consolidated in November 2025,
John Murphy: Lastly, assuming the pending sale of Coca-Cola Beverages Africa closes during the second half of 2026, subject to regulatory approvals, we expect the impact from acquisitions and divestitures to be back half-weighted. To sum it all up, we're focused on continuing what's working and transforming where needed to deliver on our 2026 guidance and create enduring value for our shareholders. We believe we're well-positioned to drive top-line growth, margin expansion, cash generation, and returns over the long term. Next week at CAGNY, I'll elaborate further on how we will do this. And with that, operator, we are ready to take questions.
John Murphy: Lastly, assuming the pending sale of Coca-Cola Beverages Africa closes during the second half of 2026, subject to regulatory approvals, we expect the impact from acquisitions and divestitures to be back half-weighted. To sum it all up, we're focused on continuing what's working and transforming where needed to deliver on our 2026 guidance and create enduring value for our shareholders. We believe we're well-positioned to drive top-line growth, margin expansion, cash generation, and returns over the long term. Next week at CAGNY, I'll elaborate further on how we will do this. And with that, operator, we are ready to take questions.
John Murphy: Lastly, assuming the pending sale of Coca-Cola Beverages Africa closes during the second half of 2026, subject to regulatory approvals, we expect the impact from acquisitions and divestitures to be back half-weighted. To sum it all up, we're focused on continuing what's working and transforming where needed to deliver on our 2026 guidance and create enduring value for our shareholders. We believe we're well-positioned to drive top-line growth, margin expansion, cash generation, and returns over the long term. Next week at CAGNY, I'll elaborate further on how we will do this. And with that, operator, we are ready to take questions.
John Murphy: Lastly, assuming the pending sale of Coca-Cola Beverages Africa closes during the second half of 2026, subject to regulatory approvals, we expect the impact from acquisitions and divestitures to be back half-weighted. To sum it all up, we're focused on continuing what's working and transforming where needed to deliver on our 2026 guidance and create enduring value for our shareholders. We believe we're well-positioned to drive top-line growth, margin expansion, cash generation, and returns over the long term. Next week at CAGNY, I'll elaborate further on how we will do this. And with that, operator, we are ready to take questions.
Lastly, assuming the pending sale, we spoke with all the beverages of Africa closest during the second half of 2026.
Subject to regulatory approvals.
We expect the impact from Acquisitions and the vestors to be back half waited.
To sum it all up, we're focused on continuing what's working and transforming where needed.
To deliver on our 2026 guidance.
And create enduring value for our shareholders.
We believe we're well positioned to drive Topline growth.
Margin expansion, cash, generation and returns over the long term.
Next week a technique. I'll elaborate further on how we will do this.
And with that operator, we are ready to take questions.
Operator: Ladies and gentlemen, to ask a question, you will need to press star one on your telephone. To withdraw your question, press star one again. In the interest of time, we ask that you please limit yourself to one question. If you have any additional questions, you may rejoin the queue. Our first question comes from Dara Mohsenian with Morgan Stanley. Your line is open.
Operator: Ladies and gentlemen, to ask a question, you will need to press star one on your telephone. To withdraw your question, press star one again. In the interest of time, we ask that you please limit yourself to one question. If you have any additional questions, you may rejoin the queue. Our first question comes from Dara Mohsenian with Morgan Stanley. Your line is open.
Operator: Ladies and gentlemen, to ask a question, you will need to press star one on your telephone. To withdraw your question, press star one again. In the interest of time, we ask that you please limit yourself to one question. If you have any additional questions, you may rejoin the queue. Our first question comes from Dara Mohsenian with Morgan Stanley. Your line is open.
Operator: Ladies and gentlemen, to ask a question, you will need to press star one on your telephone. To withdraw your question, press star one again. In the interest of time, we ask that you please limit yourself to one question. If you have any additional questions, you may rejoin the queue. Our first question comes from Dara Mohsenian with Morgan Stanley. Your line is open.
Ladies and gentlemen to ask you a question, you will need to press star 1 on your telephone to withdraw. Your question, press star 1. Again, in the interest of time, we ask that you please limit yourself to 1 question. If you have any additional questions, you may rejoin the queue.
Our first question comes from Dara Mohniyan with Morgan Stanley. Your line is open.
Dara Mohsenian: Hey, good morning. First, best wishes, James, after a remarkable run under your stewardship, and congratulations to Henrique. I just wanted to get into the nitty-gritty of the 4% to 5% organic sales growth outlook for 2026. Was just hoping to get some perspective on the balance between price mix and volume in 2026. First, obviously, the Q4 price mix result was dragged down by geographic mix and timing, as you mentioned. What's a more normalized price mix run rate as you build up the geographies and look forward to 2026, particularly in a tough consumer environment and relative to what you'd view as a more underlying run rate on price mix coming out of Q4? And then just on the volume side, impressive 1% result in the quarter against a tough 2% comparison.
Dara Mohsenian: Hey, good morning. First, best wishes, James, after a remarkable run under your stewardship, and congratulations to Henrique. I just wanted to get into the nitty-gritty of the 4% to 5% organic sales growth outlook for 2026. Was just hoping to get some perspective on the balance between price mix and volume in 2026. First, obviously, the Q4 price mix result was dragged down by geographic mix and timing, as you mentioned. What's a more normalized price mix run rate as you build up the geographies and look forward to 2026, particularly in a tough consumer environment and relative to what you'd view as a more underlying run rate on price mix coming out of Q4? And then just on the volume side, impressive 1% result in the quarter against a tough 2% comparison.
Dara Mohsenian: Hey, good morning. First, best wishes, James, after a remarkable run under your stewardship, and congratulations to Henrique. I just wanted to get into the nitty-gritty of the 4% to 5% organic sales growth outlook for 2026. Was just hoping to get some perspective on the balance between price mix and volume in 2026. First, obviously, the Q4 price mix result was dragged down by geographic mix and timing, as you mentioned. What's a more normalized price mix run rate as you build up the geographies and look forward to 2026, particularly in a tough consumer environment and relative to what you'd view as a more underlying run rate on price mix coming out of Q4? And then just on the volume side, impressive 1% result in the quarter against a tough 2% comparison.
Dara Mohsenian: Hey, good morning. First, best wishes, James, after a remarkable run under your stewardship, and congratulations to Henrique. I just wanted to get into the nitty-gritty of the 4% to 5% organic sales growth outlook for 2026. Was just hoping to get some perspective on the balance between price mix and volume in 2026. First, obviously, the Q4 price mix result was dragged down by geographic mix and timing, as you mentioned. What's a more normalized price mix run rate as you build up the geographies and look forward to 2026, particularly in a tough consumer environment and relative to what you'd view as a more underlying run rate on price mix coming out of Q4? And then just on the volume side, impressive 1% result in the quarter against a tough 2% comparison.
Hey, good morning. First, best wishes, James, after a remarkable run under your stewardship, and congratulations to Henrique. I just wanted to get into the nitty-gritty of the 4% to 5% organic sales growth outlook for 2025.
Dara Mohsenian: But you do have the Mexico drag on volume from taxes in 2026, perhaps some concentrate timing, still difficult consumer environment. So just wanted to get perspective on volume prospects also for 2026 and just, again, the balance between volume and price mix that's implied in the organic sales growth guidance? Thanks.
Dara Mohsenian: But you do have the Mexico drag on volume from taxes in 2026, perhaps some concentrate timing, still difficult consumer environment. So just wanted to get perspective on volume prospects also for 2026 and just, again, the balance between volume and price mix that's implied in the organic sales growth guidance? Thanks.
Dara Mohsenian: But you do have the Mexico drag on volume from taxes in 2026, perhaps some concentrate timing, still difficult consumer environment. So just wanted to get perspective on volume prospects also for 2026 and just, again, the balance between volume and price mix that's implied in the organic sales growth guidance? Thanks.
Dara Mohsenian: But you do have the Mexico drag on volume from taxes in 2026, perhaps some concentrate timing, still difficult consumer environment. So just wanted to get perspective on volume prospects also for 2026 and just, again, the balance between volume and price mix that's implied in the organic sales growth guidance? Thanks.
John Murphy: Well, thanks, Dara. I was slightly worried that you were going to try and cram in all the questions for the next few years, and your last opportunity to ask me one. Let me unpack a little, particularly, as you mentioned, 2025 price mix and then roll into 2026. I'll take this opportunity on my last call to make an exhortation to people, particularly as it relates to price mix and inventory, given our position in the supply chain, to always try and take a four-quarter view. What do I mean by that? In the fourth quarter, pricing came in at 1%, but actually, it was really 4%. Underlying pricing, as John mentioned, was really 4%. There was this 3% negative mix. Partly, it was the IG. Partly, it was some geographies and categories. In previous quarters, it's been +2% or +3%.
John Murphy: Well, thanks, Dara. I was slightly worried that you were going to try and cram in all the questions for the next few years, and your last opportunity to ask me one. Let me unpack a little, particularly, as you mentioned, 2025 price mix and then roll into 2026. I'll take this opportunity on my last call to make an exhortation to people, particularly as it relates to price mix and inventory, given our position in the supply chain, to always try and take a four-quarter view. What do I mean by that? In the fourth quarter, pricing came in at 1%, but actually, it was really 4%. Underlying pricing, as John mentioned, was really 4%. There was this 3% negative mix. Partly, it was the IG. Partly, it was some geographies and categories. In previous quarters, it's been +2% or +3%.
John Murphy: Well, thanks, Dara. I was slightly worried that you were going to try and cram in all the questions for the next few years, and your last opportunity to ask me one. Let me unpack a little, particularly, as you mentioned, 2025 price mix and then roll into 2026. I'll take this opportunity on my last call to make an exhortation to people, particularly as it relates to price mix and inventory, given our position in the supply chain, to always try and take a four-quarter view. What do I mean by that? In the fourth quarter, pricing came in at 1%, but actually, it was really 4%. Underlying pricing, as John mentioned, was really 4%. There was this 3% negative mix. Partly, it was the IG. Partly, it was some geographies and categories. In previous quarters, it's been +2% or +3%.
John Murphy: Well, thanks, Dara. I was slightly worried that you were going to try and cram in all the questions for the next few years, and your last opportunity to ask me one. Let me unpack a little, particularly, as you mentioned, 2025 price mix and then roll into 2026. I'll take this opportunity on my last call to make an exhortation to people, particularly as it relates to price mix and inventory, given our position in the supply chain, to always try and take a four-quarter view. What do I mean by that? In the fourth quarter, pricing came in at 1%, but actually, it was really 4%. Underlying pricing, as John mentioned, was really 4%. There was this 3% negative mix. Partly, it was the IG. Partly, it was some geographies and categories. In previous quarters, it's been +2% or +3%.
Well, thanks, Dara. And um, I was slightly worried that you were going to try and cram in all the questions for the next few years in your last opportunity. To ask me what? Um, Let me let me unpack a little particularly as you mentioned, 20 2025, price, mix, and then roll into 26. Um and again I'll take this opportunity on my last call to make an exaltation to people particularly as it relates to price, mix and inventory, given our position in the slot supply chain for always try and take a full quarter View. What do I mean by that?
Uh, in the fourth quarter pricing, came in um, at 1%. But actually, it was really 4 under underlying pricing. As John mentioned was really 4%. There was this 3%.
John Murphy: If you look across the last four quarters, that mix number is even. So it's always useful to take a four-quarter view on the mix component. If you take that, what you see is 4% underlying price and 1% volume. So you see the fourth quarter in simple terms as a 5% revenue growth quarter, which is very much what we've been delivering through 2025 and back into the previous year. So I think that's super important to bear in mind. And then if we've talked historically, as inflation has moderated, as we have seen that some of the economies around the world stabilize, we have been expecting our go-forward guidance to see a more balanced mix of volume and price. And so I think that's what you kind of see for 2026, is a view that we still are going to be top-line driven.
John Murphy: If you look across the last four quarters, that mix number is even. So it's always useful to take a four-quarter view on the mix component. If you take that, what you see is 4% underlying price and 1% volume. So you see the fourth quarter in simple terms as a 5% revenue growth quarter, which is very much what we've been delivering through 2025 and back into the previous year. So I think that's super important to bear in mind. And then if we've talked historically, as inflation has moderated, as we have seen that some of the economies around the world stabilize, we have been expecting our go-forward guidance to see a more balanced mix of volume and price. And so I think that's what you kind of see for 2026, is a view that we still are going to be top-line driven.
John Murphy: If you look across the last four quarters, that mix number is even. So it's always useful to take a four-quarter view on the mix component. If you take that, what you see is 4% underlying price and 1% volume. So you see the fourth quarter in simple terms as a 5% revenue growth quarter, which is very much what we've been delivering through 2025 and back into the previous year. So I think that's super important to bear in mind. And then if we've talked historically, as inflation has moderated, as we have seen that some of the economies around the world stabilize, we have been expecting our go-forward guidance to see a more balanced mix of volume and price. And so I think that's what you kind of see for 2026, is a view that we still are going to be top-line driven.
John Murphy: If you look across the last four quarters, that mix number is even. So it's always useful to take a four-quarter view on the mix component. If you take that, what you see is 4% underlying price and 1% volume. So you see the fourth quarter in simple terms as a 5% revenue growth quarter, which is very much what we've been delivering through 2025 and back into the previous year. So I think that's super important to bear in mind. And then if we've talked historically, as inflation has moderated, as we have seen that some of the economies around the world stabilize, we have been expecting our go-forward guidance to see a more balanced mix of volume and price. And so I think that's what you kind of see for 2026, is a view that we still are going to be top-line driven.
Negative mix partly was the IG partly. It was some geographies and categories, you know in previous quarters it's been plus 2 or plus 3. If you look across the last 4 quarters that mixed number is even so it's always useful to take a 4 quarter View on the mixed components. If you if you take that you what you see is 4% underlying price and 1% volume. So you see the fourth quarter in simple terms as a 5% Revenue, uh, growth, uh, quarter, which is very much what we've been delivering, uh, through 25 and back into the previous year. So I think that's, that's super important to bear in mind. And then if we've talked, um, historically, as we've as inflation as moderated,
John Murphy: We see strength in everything we're doing. I know Henrique and John will unpack that in CAGNY. But we are just being a little more realistic, as we always are, on where we need to improve to get that volume in 2026 and being a degree of prudence. Some of the weaknesses would need to resolve themselves and bounce back: India, China, some of ASEAN, a few countries in Europe. And then we've got the kind of the Mexican tax headwind starting now. We have just been what we believe to be realistic and prudent, but still super important, we are leaning into growth. We believe we have all the strategies and execution to drive top-line growth well into the future.
John Murphy: We see strength in everything we're doing. I know Henrique and John will unpack that in CAGNY. But we are just being a little more realistic, as we always are, on where we need to improve to get that volume in 2026 and being a degree of prudence. Some of the weaknesses would need to resolve themselves and bounce back: India, China, some of ASEAN, a few countries in Europe. And then we've got the kind of the Mexican tax headwind starting now. We have just been what we believe to be realistic and prudent, but still super important, we are leaning into growth. We believe we have all the strategies and execution to drive top-line growth well into the future.
John Murphy: We see strength in everything we're doing. I know Henrique and John will unpack that in CAGNY. But we are just being a little more realistic, as we always are, on where we need to improve to get that volume in 2026 and being a degree of prudence. Some of the weaknesses would need to resolve themselves and bounce back: India, China, some of ASEAN, a few countries in Europe. And then we've got the kind of the Mexican tax headwind starting now. We have just been what we believe to be realistic and prudent, but still super important, we are leaning into growth. We believe we have all the strategies and execution to drive top-line growth well into the future.
John Murphy: We see strength in everything we're doing. I know Henrique and John will unpack that in CAGNY. But we are just being a little more realistic, as we always are, on where we need to improve to get that volume in 2026 and being a degree of prudence. Some of the weaknesses would need to resolve themselves and bounce back: India, China, some of ASEAN, a few countries in Europe. And then we've got the kind of the Mexican tax headwind starting now. We have just been what we believe to be realistic and prudent, but still super important, we are leaning into growth. We believe we have all the strategies and execution to drive top-line growth well into the future.
We have stabilized seen that some of the economies around the world stabilize. Uh, we have been expecting our goal forward guidance to see our more balanced, uh, mix of volume, uh, and price. And so I think that's what you kind of see for 2026. Is a view that we still are going to be Topline driven. Um, we see, strength in everything we're doing and I know
Enrique, and John will unpack that in Kagney. Um, but we are just being a little more, uh, realistic, as we always are on where we need to improve to get that volume in 26 and being a degree of prudence, um, some of the weaknesses that need to resolve themselves about back India China. Some of our, the few countries in Europe, and then we've got the kind of the Mexican tax, uh, headwind, uh, starting now, uh, we have just been what we believe to be. Realistic and prudent, but still super important. We are leaning into growth. We believe we have all the strategies and execution to drive Topline growth, well, into the future.
Operator: Our next question comes from Steve Powers of Deutsche Bank. Your line is open.
Operator: Our next question comes from Steve Powers of Deutsche Bank. Your line is open.
Operator: Our next question comes from Steve Powers of Deutsche Bank. Your line is open.
Operator: Our next question comes from Steve Powers of Deutsche Bank. Your line is open.
Our next question.
Comes from Steve powers of Deutsche Bank. Your line is open.
Steve Powers: Great. And good morning. Congrats again, both to you, James, on your past accomplishments, and Henrique on the accomplishments to come. I guess following up on Dara's question related to the 4% to 5% call for 2026. James, a few months ago, you talked about some steady, you framed it as light drizzle in the macro environment that seemed to be trending worse for consumers. I guess, how have you assumed those general operating conditions trend in the year ahead? And as we think about the balance of that 4% to 5% growth in 2026 from a different perspective, you talked about volume versus price. I guess the contributions that you're expecting from emerging versus developed markets in the year ahead would be helpful as well. Thank you.
Steve Powers: Great. And good morning. Congrats again, both to you, James, on your past accomplishments, and Henrique on the accomplishments to come. I guess following up on Dara's question related to the 4% to 5% call for 2026. James, a few months ago, you talked about some steady, you framed it as light drizzle in the macro environment that seemed to be trending worse for consumers. I guess, how have you assumed those general operating conditions trend in the year ahead? And as we think about the balance of that 4% to 5% growth in 2026 from a different perspective, you talked about volume versus price. I guess the contributions that you're expecting from emerging versus developed markets in the year ahead would be helpful as well. Thank you.
Steve Powers: Great. And good morning. Congrats again, both to you, James, on your past accomplishments, and Henrique on the accomplishments to come. I guess following up on Dara's question related to the 4% to 5% call for 2026. James, a few months ago, you talked about some steady, you framed it as light drizzle in the macro environment that seemed to be trending worse for consumers. I guess, how have you assumed those general operating conditions trend in the year ahead? And as we think about the balance of that 4% to 5% growth in 2026 from a different perspective, you talked about volume versus price. I guess the contributions that you're expecting from emerging versus developed markets in the year ahead would be helpful as well. Thank you.
Steve Powers: Great. And good morning. Congrats again, both to you, James, on your past accomplishments, and Henrique on the accomplishments to come. I guess following up on Dara's question related to the 4% to 5% call for 2026. James, a few months ago, you talked about some steady, you framed it as light drizzle in the macro environment that seemed to be trending worse for consumers. I guess, how have you assumed those general operating conditions trend in the year ahead? And as we think about the balance of that 4% to 5% growth in 2026 from a different perspective, you talked about volume versus price. I guess the contributions that you're expecting from emerging versus developed markets in the year ahead would be helpful as well. Thank you.
Great. Good morning, congrats again, uh, both to you James on your past accomplishments and Enrique on, on the accomplishments to come. Um, I guess following up on on, there is question related to, you know, the 4 to 5% call for 26. Um, James, a few months ago, you talked about some steady, um, frames as light drizzle in the macro environment, that that seemed to be trending worse, for consumers. I guess, how have you assumed those General, operating conditions Trends, uh, in the year ahead? And as we think about the balance of, um, about 4 to 5% growth,
Uh, in 26 from the different perspective. You talk about volume versus price, I guess the contributions that you're expecting from um from emerging versus developed markets in the year ahead would be helpful as well. Thank you.
John Murphy: Sure. Yes, I think light drizzle was the December phrase, which I still think is true relative to what people were expecting then. Look, and I think this mix between volume and price also. Look, we believe we will get back to a balance. I'll call it 50/50. What is important this year is to know that the places that need to get better are the contributors of long-term volume growth. India is a long-term contributor of volume growth. So that needs to build back, and we would expect that to ramp up during the year. Similarly, China was a little weaker in Q4 than it had been during the year. And we're looking to see that build back up through the year and a couple of other ASEAN and European markets.
John Murphy: Sure. Yes, I think light drizzle was the December phrase, which I still think is true relative to what people were expecting then. Look, and I think this mix between volume and price also. Look, we believe we will get back to a balance. I'll call it 50/50. What is important this year is to know that the places that need to get better are the contributors of long-term volume growth. India is a long-term contributor of volume growth. So that needs to build back, and we would expect that to ramp up during the year. Similarly, China was a little weaker in Q4 than it had been during the year. And we're looking to see that build back up through the year and a couple of other ASEAN and European markets.
John Murphy: Sure. Yes, I think light drizzle was the December phrase, which I still think is true relative to what people were expecting then. Look, and I think this mix between volume and price also. Look, we believe we will get back to a balance. I'll call it 50/50. What is important this year is to know that the places that need to get better are the contributors of long-term volume growth. India is a long-term contributor of volume growth. So that needs to build back, and we would expect that to ramp up during the year. Similarly, China was a little weaker in Q4 than it had been during the year. And we're looking to see that build back up through the year and a couple of other ASEAN and European markets.
John Murphy: Sure. Yes, I think light drizzle was the December phrase, which I still think is true relative to what people were expecting then. Look, and I think this mix between volume and price also. Look, we believe we will get back to a balance. I'll call it 50/50. What is important this year is to know that the places that need to get better are the contributors of long-term volume growth. India is a long-term contributor of volume growth. So that needs to build back, and we would expect that to ramp up during the year. Similarly, China was a little weaker in Q4 than it had been during the year. And we're looking to see that build back up through the year and a couple of other ASEAN and European markets.
Sure, uh, yes, I I think light drizzle was the December phrase, which I, I, I still think he's true, uh, relative to what people were expecting then look. And and I think this mix between uh, volume and price. Also look, we're we're, we believe we will get back to a balanced. I'll call it 50/50. Um, what is important is this year? Is the null that the place is that needs to get better or the contributors of long-term volume growth, or India is a long-term contributor of volume growth so that needs to build back. And we would expect that to
John Murphy: So, obviously, the Mexican tax headwind is more likely to be impactful at the beginning of the year in Q1 and then, to some extent, mitigate as we execute the actions to try and offset the impact. All of that would lead you to conclude that we need to see the actions executed and see that volume start to build back in some of the volume-driving countries through the year. So therefore, you might see a little more price at the beginning of the year and a little more balance towards the end of the year, if that makes sense. But in the end, we're looking and the guys will talk about it in CAGNY next week to get more growth, more brands, and more markets.
John Murphy: So, obviously, the Mexican tax headwind is more likely to be impactful at the beginning of the year in Q1 and then, to some extent, mitigate as we execute the actions to try and offset the impact. All of that would lead you to conclude that we need to see the actions executed and see that volume start to build back in some of the volume-driving countries through the year. So therefore, you might see a little more price at the beginning of the year and a little more balance towards the end of the year, if that makes sense. But in the end, we're looking and the guys will talk about it in CAGNY next week to get more growth, more brands, and more markets.
John Murphy: So, obviously, the Mexican tax headwind is more likely to be impactful at the beginning of the year in Q1 and then, to some extent, mitigate as we execute the actions to try and offset the impact. All of that would lead you to conclude that we need to see the actions executed and see that volume start to build back in some of the volume-driving countries through the year. So therefore, you might see a little more price at the beginning of the year and a little more balance towards the end of the year, if that makes sense. But in the end, we're looking and the guys will talk about it in CAGNY next week to get more growth, more brands, and more markets.
John Murphy: So, obviously, the Mexican tax headwind is more likely to be impactful at the beginning of the year in Q1 and then, to some extent, mitigate as we execute the actions to try and offset the impact. All of that would lead you to conclude that we need to see the actions executed and see that volume start to build back in some of the volume-driving countries through the year. So therefore, you might see a little more price at the beginning of the year and a little more balance towards the end of the year, if that makes sense. But in the end, we're looking and the guys will talk about it in CAGNY next week to get more growth, more brands, and more markets.
Towards the end of the year, uh, if that makes sense. But in the end we're looking um, and the guys will talk about it in Keaggy next week to get more growth, more Brands and more markets.
Operator: Our next question comes from Lauren Lieberman with Barclays. Your line is open.
Operator: Our next question comes from Lauren Lieberman with Barclays. Your line is open.
Operator: Our next question comes from Lauren Lieberman with Barclays. Your line is open.
Operator: Our next question comes from Lauren Lieberman with Barclays. Your line is open.
Lauren Lieberman: Great. Thanks. Good morning, everyone. Wanted to talk a little bit about profitability. North America operating margin expansion, another strong year, and now at 30% margins for the first time in this operating unit. I think when I've asked John, when I've asked you about it in the past, you're always like, "Oh, it's a one-off. Don't get too excited about profitability in North America." But it does look like there's been structural change. So just wanted to talk about now maybe long-term view of that. Is this an appropriate level of margin? Is there more incremental reinvestment you need to do? Do you feel like you're kind of over-earning in some way, profitability-wise, or is there more work to do, and more expansion that can happen? Thanks.
Lauren Lieberman: Great. Thanks. Good morning, everyone. Wanted to talk a little bit about profitability. North America operating margin expansion, another strong year, and now at 30% margins for the first time in this operating unit. I think when I've asked John, when I've asked you about it in the past, you're always like, "Oh, it's a one-off. Don't get too excited about profitability in North America." But it does look like there's been structural change. So just wanted to talk about now maybe long-term view of that. Is this an appropriate level of margin? Is there more incremental reinvestment you need to do? Do you feel like you're kind of over-earning in some way, profitability-wise, or is there more work to do, and more expansion that can happen? Thanks.
Lauren Lieberman: Great. Thanks. Good morning, everyone. Wanted to talk a little bit about profitability. North America operating margin expansion, another strong year, and now at 30% margins for the first time in this operating unit. I think when I've asked John, when I've asked you about it in the past, you're always like, "Oh, it's a one-off. Don't get too excited about profitability in North America." But it does look like there's been structural change. So just wanted to talk about now maybe long-term view of that. Is this an appropriate level of margin? Is there more incremental reinvestment you need to do? Do you feel like you're kind of over-earning in some way, profitability-wise, or is there more work to do, and more expansion that can happen? Thanks.
Lauren Lieberman: Great. Thanks. Good morning, everyone. Wanted to talk a little bit about profitability. North America operating margin expansion, another strong year, and now at 30% margins for the first time in this operating unit. I think when I've asked John, when I've asked you about it in the past, you're always like, "Oh, it's a one-off. Don't get too excited about profitability in North America." But it does look like there's been structural change. So just wanted to talk about now maybe long-term view of that. Is this an appropriate level of margin? Is there more incremental reinvestment you need to do? Do you feel like you're kind of over-earning in some way, profitability-wise, or is there more work to do, and more expansion that can happen? Thanks.
Our next question comes from Lauren Lieberman with barklay, your line is open.
Great. Thanks. Good morning everyone. Um, wanted to talk a little bit about profitability. Um North America, operating margin expansion, another strong year, and now at 30% margins, for the first time in this operating unit, I think 1 of asked genre, I've asked you about it in the past, you're always like, oh, it's a 1-off, you know, don't get too excited about profitability in North America but it does look like there's been structural change. So um, just wanted to talk about now maybe long-term view of that is this in a you know, an appropriate level of of of margin. Um, is there more incremental reinvestment? You need to do, do you feel like you're kind of over earning in some way, profitability wise, or is there more work to do and more expansion that can happen? Thanks.
John Murphy: Thanks, Lauren. An answer in two parts. Take the opportunity to talk about it at the total company level. We have, I think, in the last eight years, averaged about 60 basis points a year operating margin expansion. We have talked frequently about the fact that it's not a fluke. There's lots of levers that we have in the supply chain, marketing investment, how we run the business. North America has been, I guess, our star performer over the last few years in tapping into all three sources. They expect, and we expect, there are folks running North America, and we expect them to continue to sort of lead the way because there's still tremendous opportunity to, as Henrique said earlier, to just get a little bit better every day.
John Murphy: Thanks, Lauren. An answer in two parts. Take the opportunity to talk about it at the total company level. We have, I think, in the last eight years, averaged about 60 basis points a year operating margin expansion. We have talked frequently about the fact that it's not a fluke. There's lots of levers that we have in the supply chain, marketing investment, how we run the business. North America has been, I guess, our star performer over the last few years in tapping into all three sources. They expect, and we expect, there are folks running North America, and we expect them to continue to sort of lead the way because there's still tremendous opportunity to, as Henrique said earlier, to just get a little bit better every day.
John Murphy: Thanks, Lauren. An answer in two parts. Take the opportunity to talk about it at the total company level. We have, I think, in the last eight years, averaged about 60 basis points a year operating margin expansion. We have talked frequently about the fact that it's not a fluke. There's lots of levers that we have in the supply chain, marketing investment, how we run the business. North America has been, I guess, our star performer over the last few years in tapping into all three sources. They expect, and we expect, there are folks running North America, and we expect them to continue to sort of lead the way because there's still tremendous opportunity to, as Henrique said earlier, to just get a little bit better every day.
John Murphy: Thanks, Lauren. An answer in two parts. Take the opportunity to talk about it at the total company level. We have, I think, in the last eight years, averaged about 60 basis points a year operating margin expansion. We have talked frequently about the fact that it's not a fluke. There's lots of levers that we have in the supply chain, marketing investment, how we run the business. North America has been, I guess, our star performer over the last few years in tapping into all three sources. They expect, and we expect, there are folks running North America, and we expect them to continue to sort of lead the way because there's still tremendous opportunity to, as Henrique said earlier, to just get a little bit better every day.
Thanks Lauren. I
And answer it in in 2 parts, take the opportunity to talk about it at the total company level.
yeah, we have
I think in the last 8 years have averaged about 60 basis points. A year, operating margin expansion.
We have talked frequently about.
the fact that it's not a fluke, there's lots of levers that we have in the supply chain marketing investment,
That we run the business. And and North America has been, um, our I, I guess our our performer over the last few years in tapping into all 3 sources.
and,
John Murphy: We'll talk again next week on sort of a deeper dive into some of these levers and how they have been and will continue to help us deliver on our long-term algorithm, which, as you know, implies modest expansion on a going forward basis.
John Murphy: We'll talk again next week on sort of a deeper dive into some of these levers and how they have been and will continue to help us deliver on our long-term algorithm, which, as you know, implies modest expansion on a going forward basis.
John Murphy: We'll talk again next week on sort of a deeper dive into some of these levers and how they have been and will continue to help us deliver on our long-term algorithm, which, as you know, implies modest expansion on a going forward basis.
John Murphy: We'll talk again next week on sort of a deeper dive into some of these levers and how they have been and will continue to help us deliver on our long-term algorithm, which, as you know, implies modest expansion on a going forward basis.
They expect and we expect. There are folks running North America and we expect them to continue to, to sort of lead the way because there's still tremendous opportunity to as Enrique said earlier, just get a little bit better every day. Um,
We'll talk again next week on a sort of a deeper dive into some of these levers and how they—
have been and will continue to help us uh deliver on our our long-term algorithm, which as, you know, implies more than 6 expansion on it, going forward versus
Operator: Our next question comes from Chris Carey with Wells Fargo. Your line is open.
Operator: Our next question comes from Chris Carey with Wells Fargo. Your line is open.
Operator: Our next question comes from Chris Carey with Wells Fargo. Your line is open.
Operator: Our next question comes from Chris Carey with Wells Fargo. Your line is open.
Our next question comes from Chris carry with Wells. Fargo, your line is open.
Chris Carey: Hi. Good morning, everyone. I wanted to bring the discussion back to some of these markets in 2025, which caused a bit more volatility for the business. Some are getting a bit better. I think India, China still has opportunity to get better. Mexico will be implementing the excise tax, so there could be some volatility around volume. I wonder if we just take a step back. Can you perhaps comment on some of the markets which have been a bit more challenging or more volatile, perhaps unusual, in 2025 and how we should be thinking about overcoming those challenges into 2026, both because the comparatives get easier, but also some of the actions that you'll be driving in these markets?
Chris Carey: Hi. Good morning, everyone. I wanted to bring the discussion back to some of these markets in 2025, which caused a bit more volatility for the business. Some are getting a bit better. I think India, China still has opportunity to get better. Mexico will be implementing the excise tax, so there could be some volatility around volume. I wonder if we just take a step back. Can you perhaps comment on some of the markets which have been a bit more challenging or more volatile, perhaps unusual, in 2025 and how we should be thinking about overcoming those challenges into 2026, both because the comparatives get easier, but also some of the actions that you'll be driving in these markets?
Chris Carey: Hi. Good morning, everyone. I wanted to bring the discussion back to some of these markets in 2025, which caused a bit more volatility for the business. Some are getting a bit better. I think India, China still has opportunity to get better. Mexico will be implementing the excise tax, so there could be some volatility around volume. I wonder if we just take a step back. Can you perhaps comment on some of the markets which have been a bit more challenging or more volatile, perhaps unusual, in 2025 and how we should be thinking about overcoming those challenges into 2026, both because the comparatives get easier, but also some of the actions that you'll be driving in these markets?
Christopher Carey: Hi. Good morning, everyone. I wanted to bring the discussion back to some of these markets in 2025, which caused a bit more volatility for the business. Some are getting a bit better. I think India, China still has opportunity to get better. Mexico will be implementing the excise tax, so there could be some volatility around volume. I wonder if we just take a step back. Can you perhaps comment on some of the markets which have been a bit more challenging or more volatile, perhaps unusual, in 2025 and how we should be thinking about overcoming those challenges into 2026, both because the comparatives get easier, but also some of the actions that you'll be driving in these markets?
Hi, good morning, everyone.
I wanted to uh, bring the discussion back to some of these markets and 2025 which caused a bit more volatility for the business. Some are getting a bit better. I think India, China still has opportunity to get better.
Uh, Mexico will be implementing the excise tax, so there could be some
Volatility around volume. I wonder if we just take a step back, can you perhaps comment on some of the markets which, you know, have been a bit more challenging or or more volatile perhaps than usual in 2025.
Chris Carey: James, you had mentioned a few in a prior comment, but I wonder if we could just focus in on this concept and talk a bit more strategically about the sequential development and some of the actions that you're thinking through. Thank you.
Chris Carey: James, you had mentioned a few in a prior comment, but I wonder if we could just focus in on this concept and talk a bit more strategically about the sequential development and some of the actions that you're thinking through. Thank you.
Chris Carey: James, you had mentioned a few in a prior comment, but I wonder if we could just focus in on this concept and talk a bit more strategically about the sequential development and some of the actions that you're thinking through. Thank you.
Christopher Carey: James, you had mentioned a few in a prior comment, but I wonder if we could just focus in on this concept and talk a bit more strategically about the sequential development and some of the actions that you're thinking through. Thank you.
And how we should be thinking about overcoming those challenges in the 2026 both because the comparators, get easier. But also some of the actions that you'll be driving in these markets James, you had mentioned a few in, um, in in, in a, in a prior comment. But I wonder if we could just focus in on on this uh concept and you know talk a bit more strategically about the sequential development and some of the actions that you're thinking through, thank you.
Henrique Braun: Great. It's Henrique here. I'll take this one. So first of all, I think it's important to look at the numbers on Q4 because it tells a lot about what you mentioned in terms of how we got puts and takes all over the world in stronghold markets that continue to have the momentum, and others that we expected to do better. And for different reasons, they were on ups and downs during the year, as James had mentioned: China index of the world, and Mexico this year with a HAGS that's coming with the taxes. But I'll cover how we're going to actually leverage the whole world performance to continue to deliver towards our goal, okay? But the All-Weather Strategy has been working for us because we leverage not only the ones that have the momentum to offset these other markets.
Henrique Braun: Great. It's Henrique here. I'll take this one. So first of all, I think it's important to look at the numbers on Q4 because it tells a lot about what you mentioned in terms of how we got puts and takes all over the world in stronghold markets that continue to have the momentum, and others that we expected to do better. And for different reasons, they were on ups and downs during the year, as James had mentioned: China index of the world, and Mexico this year with a HAGS that's coming with the taxes. But I'll cover how we're going to actually leverage the whole world performance to continue to deliver towards our goal, okay? But the All-Weather Strategy has been working for us because we leverage not only the ones that have the momentum to offset these other markets.
Henrique Braun: Great. It's Henrique here. I'll take this one. So first of all, I think it's important to look at the numbers on Q4 because it tells a lot about what you mentioned in terms of how we got puts and takes all over the world in stronghold markets that continue to have the momentum, and others that we expected to do better. And for different reasons, they were on ups and downs during the year, as James had mentioned: China index of the world, and Mexico this year with a HAGS that's coming with the taxes. But I'll cover how we're going to actually leverage the whole world performance to continue to deliver towards our goal, okay? But the All-Weather Strategy has been working for us because we leverage not only the ones that have the momentum to offset these other markets.
Henrique Braun: Great. It's Henrique here. I'll take this one. So first of all, I think it's important to look at the numbers on Q4 because it tells a lot about what you mentioned in terms of how we got puts and takes all over the world in stronghold markets that continue to have the momentum, and others that we expected to do better. And for different reasons, they were on ups and downs during the year, as James had mentioned: China index of the world, and Mexico this year with a HAGS that's coming with the taxes. But I'll cover how we're going to actually leverage the whole world performance to continue to deliver towards our goal, okay? But the All-Weather Strategy has been working for us because we leverage not only the ones that have the momentum to offset these other markets.
Please, uh, Tim Rica here. I'll take this 1.
So first of all, I think it's important to look at the numbers on Q4 because it tells a lot about what you mentioned in terms of how we got puts and takes all over the world in stronghold markets, and continue to have the momentum and others that we expected to to, to do better. And for different reasons, they were on ups and downs during the year as James had mentioned in China in the of the world. And Max of this year with uh you know had that's coming with the taxes but I'll cover how we going to actually leverage uh the whole world uh performance to, to continue to deliver uh, towards our our okay. But the all weather strategy has been working for us because we we leverage. Not only the ones that have the momentum to upset.
Henrique Braun: If you go specifically into the three that we mentioned, in APEC, when we have China, for instance, being one big market for us, volumetrically speaking, but it has been also a market that we have seen the consumer sentiment and the spending being below pre-pandemic rates. Nevertheless, we continue to gain share in the market. We took a strategy there to build this for the long term, and we continue to have good inroads on the quality leadership on the core, and we continue to win in that. So it's more of a long-term market, and we expect on our plans to continue to drive that next year, but with some volatility in that. With China and with India, we had last year different impacts from industry, tax dynamics, weather.
Henrique Braun: If you go specifically into the three that we mentioned, in APEC, when we have China, for instance, being one big market for us, volumetrically speaking, but it has been also a market that we have seen the consumer sentiment and the spending being below pre-pandemic rates. Nevertheless, we continue to gain share in the market. We took a strategy there to build this for the long term, and we continue to have good inroads on the quality leadership on the core, and we continue to win in that. So it's more of a long-term market, and we expect on our plans to continue to drive that next year, but with some volatility in that. With China and with India, we had last year different impacts from industry, tax dynamics, weather.
Henrique Braun: If you go specifically into the three that we mentioned, in APEC, when we have China, for instance, being one big market for us, volumetrically speaking, but it has been also a market that we have seen the consumer sentiment and the spending being below pre-pandemic rates. Nevertheless, we continue to gain share in the market. We took a strategy there to build this for the long term, and we continue to have good inroads on the quality leadership on the core, and we continue to win in that. So it's more of a long-term market, and we expect on our plans to continue to drive that next year, but with some volatility in that. With China and with India, we had last year different impacts from industry, tax dynamics, weather.
Henrique Braun: If you go specifically into the three that we mentioned, in APEC, when we have China, for instance, being one big market for us, volumetrically speaking, but it has been also a market that we have seen the consumer sentiment and the spending being below pre-pandemic rates. Nevertheless, we continue to gain share in the market. We took a strategy there to build this for the long term, and we continue to have good inroads on the quality leadership on the core, and we continue to win in that. So it's more of a long-term market, and we expect on our plans to continue to drive that next year, but with some volatility in that. With China and with India, we had last year different impacts from industry, tax dynamics, weather.
These other markets, if you go specifically into the three that we mentioned,
uh, these are payback when I have
Being 1 big market for us, volatility speaking, but it has been also a market that we have seen the the consumer sentiment and expand being below pre-pandemic days.
Henrique Braun: And it was a market that we continue to invest also ahead of the curve, and we believe that we can get back on track in 2026. Finally, the other market, Mexico. You have to look at the context of Latin America. We have had headwinds in the past in different markets, and the system together was able to build the right capabilities and address it through very good foundations on RGM. That's exactly what we're doing there in Mexico and leveraging the other markets that have the right momentum to get that algorithm going. So in a nutshell, we believe that we have plans to continue to navigate well, and the All-Weather Strategy should put us in good shape to deliver against the LTGA.
Henrique Braun: And it was a market that we continue to invest also ahead of the curve, and we believe that we can get back on track in 2026. Finally, the other market, Mexico. You have to look at the context of Latin America. We have had headwinds in the past in different markets, and the system together was able to build the right capabilities and address it through very good foundations on RGM. That's exactly what we're doing there in Mexico and leveraging the other markets that have the right momentum to get that algorithm going. So in a nutshell, we believe that we have plans to continue to navigate well, and the All-Weather Strategy should put us in good shape to deliver against the LTGA.
Henrique Braun: And it was a market that we continue to invest also ahead of the curve, and we believe that we can get back on track in 2026. Finally, the other market, Mexico. You have to look at the context of Latin America. We have had headwinds in the past in different markets, and the system together was able to build the right capabilities and address it through very good foundations on RGM. That's exactly what we're doing there in Mexico and leveraging the other markets that have the right momentum to get that algorithm going. So in a nutshell, we believe that we have plans to continue to navigate well, and the All-Weather Strategy should put us in good shape to deliver against the LTGA.
Henrique Braun: And it was a market that we continue to invest also ahead of the curve, and we believe that we can get back on track in 2026. Finally, the other market, Mexico. You have to look at the context of Latin America. We have had headwinds in the past in different markets, and the system together was able to build the right capabilities and address it through very good foundations on RGM. That's exactly what we're doing there in Mexico and leveraging the other markets that have the right momentum to get that algorithm going. So in a nutshell, we believe that we have plans to continue to navigate well, and the All-Weather Strategy should put us in good shape to deliver against the LTGA.
Nevertheless, we continue to, to gain share in the market. We took a strategy there to, to build this for the long term. And we continue to have a good inroads on the quality leadership on the core and we continue, uh, to win at that. So it's more of a long-term market and we expect, uh, on our plans, uh, to continue to drive that next year. But with some volatility in that, with China and with India, we had last year different impacts from industry tax, Dynamics weather, and it was, uh, Market that we continue to invest also ahead of the curve. And we believe that we can get back on track in 2026. Finally is, um, not Market. Excellent.
We have to look at the context of Latin America. We have had
Headwinds in the past with in different markets in the system together was able to build the right capabilities and address it through Very Good Foundations on rgm. That's exactly what we're doing. There in Mexico and leveraging the other markets that have the right momentum uh to get that algorithm going. So in a nutshell
I believe that we have plans to continue to navigate well and the all weather strategy should put us in a good shape to deliver um against the LTG.
Operator: Our next question comes from Filippo Falorni with Citi. Your line is open.
Operator: Our next question comes from Filippo Falorni with Citi. Your line is open.
Operator: Our next question comes from Filippo Falorni with Citi. Your line is open.
Operator: Our next question comes from Filippo Falorni with Citi. Your line is open.
Our next question comes from filipo falorni with City, your line is open.
John Murphy: Hi. Good morning, everyone. And congrats from me as well to both James and Henrique as you step in and you roll. Maybe first, just a little bit of expansion on the expectation for the North America business into 2026, especially around a few points. Obviously, you have incremental fairlife capacity coming in early in the year. So maybe give us a sense of how you're thinking that will play out throughout the year and the growth for the brand that you're expecting. And also, as we get into the summer, you obviously have the World Cup and a lot of activation around that event. Any expectations around potential uplift there? And then lastly, last year in Q1, you had the negative temporary issue with Hispanic consumer around the video.
John Murphy: Hi. Good morning, everyone. And congrats from me as well to both James and Henrique as you step in and you roll. Maybe first, just a little bit of expansion on the expectation for the North America business into 2026, especially around a few points. Obviously, you have incremental fairlife capacity coming in early in the year. So maybe give us a sense of how you're thinking that will play out throughout the year and the growth for the brand that you're expecting. And also, as we get into the summer, you obviously have the World Cup and a lot of activation around that event. Any expectations around potential uplift there? And then lastly, last year in Q1, you had the negative temporary issue with Hispanic consumer around the video.
John Murphy: Hi. Good morning, everyone. And congrats from me as well to both James and Henrique as you step in and you roll. Maybe first, just a little bit of expansion on the expectation for the North America business into 2026, especially around a few points. Obviously, you have incremental fairlife capacity coming in early in the year. So maybe give us a sense of how you're thinking that will play out throughout the year and the growth for the brand that you're expecting. And also, as we get into the summer, you obviously have the World Cup and a lot of activation around that event. Any expectations around potential uplift there? And then lastly, last year in Q1, you had the negative temporary issue with Hispanic consumer around the video.
Filippo Falorni: Hi. Good morning, everyone. And congrats from me as well to both James and Henrique as you step in and you roll. Maybe first, just a little bit of expansion on the expectation for the North America business into 2026, especially around a few points. Obviously, you have incremental fairlife capacity coming in early in the year. So maybe give us a sense of how you're thinking that will play out throughout the year and the growth for the brand that you're expecting. And also, as we get into the summer, you obviously have the World Cup and a lot of activation around that event. Any expectations around potential uplift there? And then lastly, last year in Q1, you had the negative temporary issue with Hispanic consumer around the video.
Hi. Good morning everyone and congrats from me as well, to both of James and Enrique as you step in and you're all, um, maybe first, uh, just a little bit expansion on the expectation for the North America business in 2026, especially around a few points. Obviously you have incremental Fair life capacity coming in early in the year so maybe give us a sense of how you thinking that would play out throughout the year and and the growth for the brand that you're expecting and also as we get into the summer you obviously have a the world cup and a lot of activation around that event, any expectations around potential uplift there and then lastly uh last year in 212 with Hispanic
John Murphy: Anything that you can think there to potentially see some more benefit in the first part of the year in North America? Thank you.
John Murphy: Anything that you can think there to potentially see some more benefit in the first part of the year in North America? Thank you.
John Murphy: Anything that you can think there to potentially see some more benefit in the first part of the year in North America? Thank you.
Filippo Falorni: Anything that you can think there to potentially see some more benefit in the first part of the year in North America? Thank you.
Henrique Braun: Filippo, I'll take that one as well. Look, North America in 2025, remember that we started the year with the challenge that you mentioned on some fake news that impacted part of the portfolio. Then we started to go on a sequential basis, improving quarter on quarter. We finished, as you see the numbers there on Q4, on a positive note and with good momentum across the portfolio. We continue to grow on the core, on sparkling, especially on Coca-Cola trademark. Then we look at also fairlife continued the momentum. We had also very encouraging news on our dual strategy on sports with POWERADE and BODYARMOR, not only gaining share but volume in the market. smartwater continues to do well as well.
Henrique Braun: Filippo, I'll take that one as well. Look, North America in 2025, remember that we started the year with the challenge that you mentioned on some fake news that impacted part of the portfolio. Then we started to go on a sequential basis, improving quarter on quarter. We finished, as you see the numbers there on Q4, on a positive note and with good momentum across the portfolio. We continue to grow on the core, on sparkling, especially on Coca-Cola trademark. Then we look at also fairlife continued the momentum. We had also very encouraging news on our dual strategy on sports with POWERADE and BODYARMOR, not only gaining share but volume in the market. smartwater continues to do well as well.
Henrique Braun: Filippo, I'll take that one as well. Look, North America in 2025, remember that we started the year with the challenge that you mentioned on some fake news that impacted part of the portfolio. Then we started to go on a sequential basis, improving quarter on quarter. We finished, as you see the numbers there on Q4, on a positive note and with good momentum across the portfolio. We continue to grow on the core, on sparkling, especially on Coca-Cola trademark. Then we look at also fairlife continued the momentum. We had also very encouraging news on our dual strategy on sports with POWERADE and BODYARMOR, not only gaining share but volume in the market. smartwater continues to do well as well.
Henrique Braun: Filippo, I'll take that one as well. Look, North America in 2025, remember that we started the year with the challenge that you mentioned on some fake news that impacted part of the portfolio. Then we started to go on a sequential basis, improving quarter on quarter. We finished, as you see the numbers there on Q4, on a positive note and with good momentum across the portfolio. We continue to grow on the core, on sparkling, especially on Coca-Cola trademark. Then we look at also fairlife continued the momentum. We had also very encouraging news on our dual strategy on sports with POWERADE and BODYARMOR, not only gaining share but volume in the market. smartwater continues to do well as well.
Consumer around, uh, uh, the video, uh, so anything that you can think there to potentially see some more battery in the first part of the year in North America. Thank you.
Paul, take that one as well. Look, not America 235.
remember that we started the year with the challenge that you mentioned on, um, some
Fake news that impacted, you know, part of the, the portfolio. And then we started to go on a sequential basis, improving water and water. We finish as you see the numbers down on Q4 on a positive note and with good momentum across the the portfolio.
Henrique Braun: So from a portfolio basis and a consumer resilience, we believe that we have the good momentum and the plans to continue to build on an environment that it didn't change so far in terms of the low-income consumer being pressured and also allowing us to continue to drive these across the different parts of the country to continue to grow and do better every day with our bottlers executing that strategy. So in a nutshell, we believe that we have good plans to continue the momentum that we have. And we expect North America in 2025 to continue the momentum that we built in 2020 sorry, in 2026 with the momentum that we built in 2025.
Henrique Braun: So from a portfolio basis and a consumer resilience, we believe that we have the good momentum and the plans to continue to build on an environment that it didn't change so far in terms of the low-income consumer being pressured and also allowing us to continue to drive these across the different parts of the country to continue to grow and do better every day with our bottlers executing that strategy. So in a nutshell, we believe that we have good plans to continue the momentum that we have. And we expect North America in 2025 to continue the momentum that we built in 2020 sorry, in 2026 with the momentum that we built in 2025.
Henrique Braun: So from a portfolio basis and a consumer resilience, we believe that we have the good momentum and the plans to continue to build on an environment that it didn't change so far in terms of the low-income consumer being pressured and also allowing us to continue to drive these across the different parts of the country to continue to grow and do better every day with our bottlers executing that strategy. So in a nutshell, we believe that we have good plans to continue the momentum that we have. And we expect North America in 2025 to continue the momentum that we built in 2020 sorry, in 2026 with the momentum that we built in 2025.
Henrique Braun: So from a portfolio basis and a consumer resilience, we believe that we have the good momentum and the plans to continue to build on an environment that it didn't change so far in terms of the low-income consumer being pressured and also allowing us to continue to drive these across the different parts of the country to continue to grow and do better every day with our bottlers executing that strategy. So in a nutshell, we believe that we have good plans to continue the momentum that we have. And we expect North America in 2025 to continue the momentum that we built in 2020 sorry, in 2026 with the momentum that we built in 2025.
While we continue to grow on um, on on, on the poor on sparkling especially on Coca-Cola trademark. And then we look at also Fair life continues at the moment. We have also very encouraging news on our dual strategy on sports with uh, power rate and body armor, not only getting share, but volume, uh, in the market. Smart Water continues, uh, to do well as well. So, from a portfolio basis, can a consumer resilience, we believe that we have the good momentum and the plans, uh, continue to build on an environment that it, it didn't change anything that so far in terms of the low,
Income consumer being pressured, and also allowing us to continue to drive this across the different parts of the country to continue to grow and do better at the day, with all BUrs executing that strategy. So,
in a nutshell, we believe that we have good plans to continue the moment that we have and we expect um in 2025 to continue at the moment that we built in finance, sorry in 201265.
Operator: Our next question comes from Robert Ottenstein with Evercore ISI. Your line is open.
Operator: Our next question comes from Robert Ottenstein with Evercore ISI. Your line is open.
Operator: Our next question comes from Robert Ottenstein with Evercore ISI. Your line is open.
Operator: Our next question comes from Robert Ottenstein with Evercore ISI. Your line is open.
Our next question comes from Rob ainstein with evercore, your line is open.
Robert Ottenstein: Great. Thank you very much. And please, let me echo everyone's congratulations. So maybe moving in a slightly different direction over on the FX side, could you maybe remind us your approach to currency? It's a little complicated, different than some other companies, what the guidance entails and how that is, where I think I'm seeing a 1% tailwind to the top line but 3% on the bottom line, if I've read that correctly. So what is driving that? And then what is your philosophy in terms of currency benefits, whether you'll be investing that into the business or dropping it to the bottom line, perhaps making up for some of the, as James mentioned before, being stuck at $2 for a number of years due to currency? Is this a chance to catch up on that?
Robert Ottenstein: Great. Thank you very much. And please, let me echo everyone's congratulations. So maybe moving in a slightly different direction over on the FX side, could you maybe remind us your approach to currency? It's a little complicated, different than some other companies, what the guidance entails and how that is, where I think I'm seeing a 1% tailwind to the top line but 3% on the bottom line, if I've read that correctly. So what is driving that? And then what is your philosophy in terms of currency benefits, whether you'll be investing that into the business or dropping it to the bottom line, perhaps making up for some of the, as James mentioned before, being stuck at $2 for a number of years due to currency? Is this a chance to catch up on that?
Robert Ottenstein: Great. Thank you very much. And please, let me echo everyone's congratulations. So maybe moving in a slightly different direction over on the FX side, could you maybe remind us your approach to currency? It's a little complicated, different than some other companies, what the guidance entails and how that is, where I think I'm seeing a 1% tailwind to the top line but 3% on the bottom line, if I've read that correctly. So what is driving that? And then what is your philosophy in terms of currency benefits, whether you'll be investing that into the business or dropping it to the bottom line, perhaps making up for some of the, as James mentioned before, being stuck at $2 for a number of years due to currency? Is this a chance to catch up on that?
Robert Ottenstein: Great. Thank you very much. And please, let me echo everyone's congratulations. So maybe moving in a slightly different direction over on the FX side, could you maybe remind us your approach to currency? It's a little complicated, different than some other companies, what the guidance entails and how that is, where I think I'm seeing a 1% tailwind to the top line but 3% on the bottom line, if I've read that correctly. So what is driving that? And then what is your philosophy in terms of currency benefits, whether you'll be investing that into the business or dropping it to the bottom line, perhaps making up for some of the, as James mentioned before, being stuck at $2 for a number of years due to currency? Is this a chance to catch up on that?
Robert Ottenstein: And then if I may, just kind of looking out, given your hedging policy multi-year, based on where we are today, do you see currency being a similar tailwind to 2027 or greater or less than the 2026 guidance? Thank you.
Robert Ottenstein: And then if I may, just kind of looking out, given your hedging policy multi-year, based on where we are today, do you see currency being a similar tailwind to 2027 or greater or less than the 2026 guidance? Thank you.
Robert Ottenstein: And then if I may, just kind of looking out, given your hedging policy multi-year, based on where we are today, do you see currency being a similar tailwind to 2027 or greater or less than the 2026 guidance? Thank you.
Robert Ottenstein: And then if I may, just kind of looking out, given your hedging policy multi-year, based on where we are today, do you see currency being a similar tailwind to 2027 or greater or less than the 2026 guidance? Thank you.
Great, thank you very much and and please let me uh, Echo, everyone's congratulations. Um, so maybe moving in a slightly Direction Over uh on the svx side. Um, could you maybe remind us you know, your your approach to currency. It's a little complicated different than some other companies, um, you know, with the guidance entails. Uh and how that is where I think you, I'm seeing uh, a 1% Tailwind uh to the Top Line, but 3% on the bottom line, if I'm read that correctly. So what what is driving that? Um and then you know, what is your philosophy in terms of currency benefits whether uh you'll be investing that into the business or dropping it to the bottom line perhaps making up for some of the uh you know as James mentioned before you know being stuck at 2 2 dollars for a number of years due to currency. Uh, is this a chance to catch up on that and and then if if I, if I met you know just
Kind of looking out giving your hedging policy, multi-year based on where we are today. Do you see uh, currency being, you know, a similar Tailwind to 27, uh, or greater or less than than the 26 guidance? Thank you.
John Murphy: Thanks, Robert. Indeed, it's been a while since we've talked about FX, and even longer since we've talked about FX tailwind. So good to just anchor any conversation on FX to our broader growth equation. And at the root of that equation is a focus for us to win in each of our markets over time. And for that to happen, we have got to be able to invest in a consistent manner, which, among other things, allows us to price appropriately against both the local macros and the competitive backdrop. So that's part one. And sort of fighting that, part two is at the total enterprise level. We are committed to growing our US dollar earnings as we've demonstrated over the last few years. And so our hedging program is an enabler to manage both of these tensions.
John Murphy: Thanks, Robert. Indeed, it's been a while since we've talked about FX, and even longer since we've talked about FX tailwind. So good to just anchor any conversation on FX to our broader growth equation. And at the root of that equation is a focus for us to win in each of our markets over time. And for that to happen, we have got to be able to invest in a consistent manner, which, among other things, allows us to price appropriately against both the local macros and the competitive backdrop. So that's part one. And sort of fighting that, part two is at the total enterprise level. We are committed to growing our US dollar earnings as we've demonstrated over the last few years. And so our hedging program is an enabler to manage both of these tensions.
John Murphy: Thanks, Robert. Indeed, it's been a while since we've talked about FX, and even longer since we've talked about FX tailwind. So good to just anchor any conversation on FX to our broader growth equation. And at the root of that equation is a focus for us to win in each of our markets over time. And for that to happen, we have got to be able to invest in a consistent manner, which, among other things, allows us to price appropriately against both the local macros and the competitive backdrop. So that's part one. And sort of fighting that, part two is at the total enterprise level. We are committed to growing our US dollar earnings as we've demonstrated over the last few years. And so our hedging program is an enabler to manage both of these tensions.
John Murphy: Thanks, Robert. Indeed, it's been a while since we've talked about FX, and even longer since we've talked about FX tailwind. So good to just anchor any conversation on FX to our broader growth equation. And at the root of that equation is a focus for us to win in each of our markets over time. And for that to happen, we have got to be able to invest in a consistent manner, which, among other things, allows us to price appropriately against both the local macros and the competitive backdrop. So that's part one. And sort of fighting that, part two is at the total enterprise level. We are committed to growing our US dollar earnings as we've demonstrated over the last few years. And so our hedging program is an enabler to manage both of these tensions.
Uh, thanks, Roberts, and indeed it's been a while since we've talked about FX, and even longer since we talked about FX tailwind, so, um, good. So just anchor any conversation on FX to our broader growth equation, and, you know, at the root of that equation—
Is a focus for us to win in each of our markets over time.
um, and for that to happen, we have got to be able to invest
In a consistent manner, which which among other things allows us to price.
Price appropriately. Against both the local.
Macros and the competitive backdrop.
Um, so that's part 1.
And then sort of.
Fighting that part 2 is at the total Enterprise level.
We are committed to Growing our us, our earnings.
Uh, as we've demonstrated over the last few years.
John Murphy: So on the one hand, it removes the burden of sort of non-market-driven fluctuations at the local level so that local markets can focus on winning. And secondly, it provides clarity to us at the enterprise level to the task at hand to grow US dollar earnings. So that's sort of the strategic rationale as to why we hedge. And the question for any given year is, okay, how are we going to execute optimally against that? And for 2026, we've taken advantage today of some uncertainty regarding the US dollar to lock in benefits. The tailwind that we reflected in our guidance today is driven largely by a weaker dollar in some of our larger emerging markets, most notably in Latin America and South Africa.
John Murphy: So on the one hand, it removes the burden of sort of non-market-driven fluctuations at the local level so that local markets can focus on winning. And secondly, it provides clarity to us at the enterprise level to the task at hand to grow US dollar earnings. So that's sort of the strategic rationale as to why we hedge. And the question for any given year is, okay, how are we going to execute optimally against that? And for 2026, we've taken advantage today of some uncertainty regarding the US dollar to lock in benefits. The tailwind that we reflected in our guidance today is driven largely by a weaker dollar in some of our larger emerging markets, most notably in Latin America and South Africa.
John Murphy: So on the one hand, it removes the burden of sort of non-market-driven fluctuations at the local level so that local markets can focus on winning. And secondly, it provides clarity to us at the enterprise level to the task at hand to grow US dollar earnings. So that's sort of the strategic rationale as to why we hedge. And the question for any given year is, okay, how are we going to execute optimally against that? And for 2026, we've taken advantage today of some uncertainty regarding the US dollar to lock in benefits. The tailwind that we reflected in our guidance today is driven largely by a weaker dollar in some of our larger emerging markets, most notably in Latin America and South Africa.
John Murphy: So on the one hand, it removes the burden of sort of non-market-driven fluctuations at the local level so that local markets can focus on winning. And secondly, it provides clarity to us at the enterprise level to the task at hand to grow US dollar earnings. So that's sort of the strategic rationale as to why we hedge. And the question for any given year is, okay, how are we going to execute optimally against that? And for 2026, we've taken advantage today of some uncertainty regarding the US dollar to lock in benefits. The tailwind that we reflected in our guidance today is driven largely by a weaker dollar in some of our larger emerging markets, most notably in Latin America and South Africa.
And so, our hedging program is an enabler to manage both of these tensions.
So, on the 1 hand, it removes the burden.
Of sort of non-market driven fluctuations at the local level, so that local markets can focus on winning.
And and secondly, it provides Clarity to us at the Enterprise level.
Um, to the task at hand, to grow us soft earnings. So that's that's sort of at
the the, the Strategic rationale rationalist Supply, we Hedge,
And and the question for you giving you is okay, how are we going to execute optimally against that and for 2026?
we we've taken advantage to death of
some uncertainty regarding the US dollar to lock in benefits.
The tailwinds that we reflected in our guidance today.
John Murphy: On the point about how far we go out, while we're well hedged against the G10 currencies, decisions on emerging market currencies are very much linked to the economics of doing it. As you well know, the further out you go, the more challenging the economics become. So we're well hedged through 2026 on the G10, and we're as hedged as it makes sense economically on the emerging markets. So all of that is incorporated into the guidance, 1% NSR, 3% net income. And we feel good about that being our going-in position for the year. As I say, it helps local markets focus on what they need to focus on. And it certainly gives us our homework here at the enterprise level to deliver the US dollar earnings growth.
John Murphy: On the point about how far we go out, while we're well hedged against the G10 currencies, decisions on emerging market currencies are very much linked to the economics of doing it. As you well know, the further out you go, the more challenging the economics become. So we're well hedged through 2026 on the G10, and we're as hedged as it makes sense economically on the emerging markets. So all of that is incorporated into the guidance, 1% NSR, 3% net income. And we feel good about that being our going-in position for the year. As I say, it helps local markets focus on what they need to focus on. And it certainly gives us our homework here at the enterprise level to deliver the US dollar earnings growth.
John Murphy: On the point about how far we go out, while we're well hedged against the G10 currencies, decisions on emerging market currencies are very much linked to the economics of doing it. As you well know, the further out you go, the more challenging the economics become. So we're well hedged through 2026 on the G10, and we're as hedged as it makes sense economically on the emerging markets. So all of that is incorporated into the guidance, 1% NSR, 3% net income. And we feel good about that being our going-in position for the year. As I say, it helps local markets focus on what they need to focus on. And it certainly gives us our homework here at the enterprise level to deliver the US dollar earnings growth.
This is driven largely by the weaker dollar in some of our larger emerging markets, most notably in Latin America and South Africa.
John Murphy: On the point about how far we go out, while we're well hedged against the G10 currencies, decisions on emerging market currencies are very much linked to the economics of doing it. As you well know, the further out you go, the more challenging the economics become. So we're well hedged through 2026 on the G10, and we're as hedged as it makes sense economically on the emerging markets. So all of that is incorporated into the guidance, 1% NSR, 3% net income. And we feel good about that being our going-in position for the year. As I say, it helps local markets focus on what they need to focus on. And it certainly gives us our homework here at the enterprise level to deliver the US dollar earnings growth.
And and the point about how far we go farther well hedged against the G10 currencies
Decisions on Emerging Market, currencies are very much linked to the economics of doing it. Um, as you well know, the further out you go, the more challenging the economics become so we're well hedged
So 26 and the G10 and whereas hedged as it makes sense economically on the Emerging Markets. Um so all of that is incorporated into the guidance. You know, 1% NSR uh 3% of net income and um and we feel we feel good about that being our going in position for the year. As I said, it helps local markets.
Focus on what they need to focus on and it certainly gives us our homework here at the Enterprise level to deliver. Uh, the US dollar earnings throughout
Operator: Our next question comes from Andrea Teixeira with J.P. Morgan. Your line is open.
Operator: Our next question comes from Andrea Teixeira with J.P. Morgan. Your line is open.
Operator: Our next question comes from Andrea Teixeira with J.P. Morgan. Your line is open.
Operator: Our next question comes from Andrea Teixeira with JPMorgan. Your line is open.
Andrea Teixeira: Thank you. Good morning, everyone. So James, congrats on your amazing run as CEO and now as Chairman and wishing Henrique continued success now as CEO. My question is on the impact of SNAP changes in the US and then a clarification regarding the Mexican tax and initial read from the trade. And did that inform your conservative stance for organic sales growth in 2026? Thank you.
Andrea Teixeira: Thank you. Good morning, everyone. So James, congrats on your amazing run as CEO and now as Chairman and wishing Henrique continued success now as CEO. My question is on the impact of SNAP changes in the US and then a clarification regarding the Mexican tax and initial read from the trade. And did that inform your conservative stance for organic sales growth in 2026? Thank you.
Andrea Teixeira: Thank you. Good morning, everyone. So James, congrats on your amazing run as CEO and now as Chairman and wishing Henrique continued success now as CEO. My question is on the impact of SNAP changes in the US and then a clarification regarding the Mexican tax and initial read from the trade. And did that inform your conservative stance for organic sales growth in 2026? Thank you.
Andrea Teixeira: Thank you. Good morning, everyone. So James, congrats on your amazing run as CEO and now as Chairman and wishing Henrique continued success now as CEO. My question is on the impact of SNAP changes in the US and then a clarification regarding the Mexican tax and initial read from the trade. And did that inform your conservative stance for organic sales growth in 2026? Thank you.
Our next question comes from Andrea Tara with JP Morgan. Your line is open.
Um my question is on the impact of snap changes in the US and then a clarification regarding the maximum tax and initial read from the trade. And did that inform your conservative stance for, um, organic sales growth in 2026. Thank you.
James Quincey: Yeah, sure. Thanks, Andrea. I'll do SNAP, and then Henrique can talk about the strategy in Mexico. Look, overall, SNAP, I think, is going to end up being manageable. It's a relatively small number seen from a global basis, and we think it's manageable at the US level. Clearly, we think that consumers should be allowed to choose, but regulation is regulation. What we think will happen is people will choose to spend the cash they've got on certain things, and they'll use the SNAP credits where they're applicable. And at the end of the day, what that all boils down to is we have to make them the brands and the beverages that they want to have and want to be able to spend their disposable income on.
James Quincey: Yeah, sure. Thanks, Andrea. I'll do SNAP, and then Henrique can talk about the strategy in Mexico. Look, overall, SNAP, I think, is going to end up being manageable. It's a relatively small number seen from a global basis, and we think it's manageable at the US level. Clearly, we think that consumers should be allowed to choose, but regulation is regulation. What we think will happen is people will choose to spend the cash they've got on certain things, and they'll use the SNAP credits where they're applicable. And at the end of the day, what that all boils down to is we have to make them the brands and the beverages that they want to have and want to be able to spend their disposable income on.
James Quincey: Yeah, sure. Thanks, Andrea. I'll do SNAP, and then Henrique can talk about the strategy in Mexico. Look, overall, SNAP, I think, is going to end up being manageable. It's a relatively small number seen from a global basis, and we think it's manageable at the US level. Clearly, we think that consumers should be allowed to choose, but regulation is regulation. What we think will happen is people will choose to spend the cash they've got on certain things, and they'll use the SNAP credits where they're applicable. And at the end of the day, what that all boils down to is we have to make them the brands and the beverages that they want to have and want to be able to spend their disposable income on.
James Quincey: Yeah, sure. Thanks, Andrea. I'll do SNAP, and then Henrique can talk about the strategy in Mexico. Look, overall, SNAP, I think, is going to end up being manageable. It's a relatively small number seen from a global basis, and we think it's manageable at the US level. Clearly, we think that consumers should be allowed to choose, but regulation is regulation. What we think will happen is people will choose to spend the cash they've got on certain things, and they'll use the SNAP credits where they're applicable. And at the end of the day, what that all boils down to is we have to make them the brands and the beverages that they want to have and want to be able to spend their disposable income on.
James Quincey: And that just puts the challenge on us to give them the category, the beverage, the brand, the pack size, the price point that most works for them. And net-net, we see it as a manageable impact in the US and overall globally. So I'll let Henrique comment on how he's approaching the Mexican tax situation.
James Quincey: And that just puts the challenge on us to give them the category, the beverage, the brand, the pack size, the price point that most works for them. And net-net, we see it as a manageable impact in the US and overall globally. So I'll let Henrique comment on how he's approaching the Mexican tax situation.
James Quincey: And that just puts the challenge on us to give them the category, the beverage, the brand, the pack size, the price point that most works for them. And net-net, we see it as a manageable impact in the US and overall globally. So I'll let Henrique comment on how he's approaching the Mexican tax situation.
James Quincey: And that just puts the challenge on us to give them the category, the beverage, the brand, the pack size, the price point that most works for them. And net-net, we see it as a manageable impact in the US and overall globally. So I'll let Henrique comment on how he's approaching the Mexican tax situation.
That's all, thanks. And I'll do. I'll do staff and then Enrique can talk about the the strategy in Mexico. Our overall snap. Um, um, I think is going to end up being manageable. It's a relatively small, uh, number for seeing from a global, uh, basis. And we think it's manageable at the US level. Clearly, um, we we think that, you know, consumers should be allowed to choose but, uh, regulation is regulation. Um, what we think will happen is people will, you know, choose to spend the cash, they got on certain things and they'll use the staff credits, where they're where they're applicable. Um, and at the end of the day, what that all boils down to is, we have to make them, uh, the, the brands and the beverages that they want to have and want to be able to spend their disposable income on. Um, and that just puts the challenge on us to give them, uh, the, the, the category, the beverage, the brand, the pack size, the price point, the most works for them, um, and that that we see it as a
Henrique Braun: Yeah, on the Mexico one, yes, clearly, it is a headwind that came to us in the beginning of the year, already implemented. But this is a market that you know, Andrea, as well, that we have a system that has been for years working tremendously aligned, building the foundations of RGM and allowing us to play that impact of the taxes across the different packages, prices, and channels in a way that optimizes how we actually go and try to be in front of our consumers and our customers with an impact that continues to be acceptable, right, by the consumer and the customers moving forward. That is another point that helped us as well in 2026: the fact that Mexico will host the World Cup event. It's the biggest event on Earth in terms of engagement with consumers and customers as well.
Henrique Braun: Yeah, on the Mexico one, yes, clearly, it is a headwind that came to us in the beginning of the year, already implemented. But this is a market that you know, Andrea, as well, that we have a system that has been for years working tremendously aligned, building the foundations of RGM and allowing us to play that impact of the taxes across the different packages, prices, and channels in a way that optimizes how we actually go and try to be in front of our consumers and our customers with an impact that continues to be acceptable, right, by the consumer and the customers moving forward. That is another point that helped us as well in 2026: the fact that Mexico will host the World Cup event. It's the biggest event on Earth in terms of engagement with consumers and customers as well.
Henrique Braun: Yeah, on the Mexico one, yes, clearly, it is a headwind that came to us in the beginning of the year, already implemented. But this is a market that you know, Andrea, as well, that we have a system that has been for years working tremendously aligned, building the foundations of RGM and allowing us to play that impact of the taxes across the different packages, prices, and channels in a way that optimizes how we actually go and try to be in front of our consumers and our customers with an impact that continues to be acceptable, right, by the consumer and the customers moving forward. That is another point that helped us as well in 2026: the fact that Mexico will host the World Cup event. It's the biggest event on Earth in terms of engagement with consumers and customers as well.
Henrique Braun: Yeah, on the Mexico one, yes, clearly, it is a headwind that came to us in the beginning of the year, already implemented. But this is a market that you know, Andrea, as well, that we have a system that has been for years working tremendously aligned, building the foundations of RGM and allowing us to play that impact of the taxes across the different packages, prices, and channels in a way that optimizes how we actually go and try to be in front of our consumers and our customers with an impact that continues to be acceptable, right, by the consumer and the customers moving forward. That is another point that helped us as well in 2026: the fact that Mexico will host the World Cup event. It's the biggest event on Earth in terms of engagement with consumers and customers as well.
Manageable impact in the US and overall globally. So I'll let them comment on how—how is the branching? The Mexican tax situation. Yeah, on the Mexico one. Yes, clearly, it is a headwind that, uh, came to us in the beginning of the year already implemented. But is this something like that, you know, as well? That—
we have a system that has been for years working tremendously, you know, aligned, uh, building the foundations of rgm and allowing us to play that impact of the taxes, across the different packages prices and channels in, in, in a way that, um,
Optimizes how we actually go and try to, to be, uh, in front of our consumers and our customers with, uh, an impact that continues, um, to be acceptable, by, by the customer. And, and, and the customers, uh, moving forward. There is another point that helps us as well, uh, in 2026 is the fact that we Mexico will host.
Henrique Braun: We are dialing up our campaigns there from day one. From Gen 1, we already had the campaign in place. On top of that, we're celebrating 100 years of the system in Mexico as well. All of that helps us to go and navigate through what is a headwind, but with all the tools that we have in place as a very focused system to navigate that throughout the year. Remember that as well, we had other tax increases in the past, which we learned from the mistakes and the right movements that we made in 2014 moving forward. We apply those learnings this time as well to navigate these in the best way.
Henrique Braun: We are dialing up our campaigns there from day one. From Gen 1, we already had the campaign in place. On top of that, we're celebrating 100 years of the system in Mexico as well. All of that helps us to go and navigate through what is a headwind, but with all the tools that we have in place as a very focused system to navigate that throughout the year. Remember that as well, we had other tax increases in the past, which we learned from the mistakes and the right movements that we made in 2014 moving forward. We apply those learnings this time as well to navigate these in the best way.
Henrique Braun: We are dialing up our campaigns there from day one. From Gen 1, we already had the campaign in place. On top of that, we're celebrating 100 years of the system in Mexico as well. All of that helps us to go and navigate through what is a headwind, but with all the tools that we have in place as a very focused system to navigate that throughout the year. Remember that as well, we had other tax increases in the past, which we learned from the mistakes and the right movements that we made in 2014 moving forward. We apply those learnings this time as well to navigate these in the best way.
Henrique Braun: We are dialing up our campaigns there from day one. From Gen 1, we already had the campaign in place. On top of that, we're celebrating 100 years of the system in Mexico as well. All of that helps us to go and navigate through what is a headwind, but with all the tools that we have in place as a very focused system to navigate that throughout the year. Remember that as well, we had other tax increases in the past, which we learned from the mistakes and the right movements that we made in 2014 moving forward. We apply those learnings this time as well to navigate these in the best way.
The World Cup event is the biggest event on Earth in terms of, uh, engagement with consumers, uh, and customers as well. And we are dialing up our campaigns there from day one, from Gen 1. We already had the campaign in place. On top of that, we celebrate 100 years of the system in Maxwell as well. All of that helps us, uh, to go and navigate through what is a headwind. But with all the tools that we have in place as a very focused system to navigate that, uh, throughout the year.
Remember that. Um, as well it's it's we have other
Tax increases, you know, in the past, which we learned from the mistakes and the, uh, the right movements that we made in 2014, moving forward, and we applied, those learnings, uh, this time as well, you know, to navigate this in the best way.
Operator: Our next question comes from Peter Galbo with Bank of America. Your line is open.
Operator: Our next question comes from Peter Galbo with Bank of America. Your line is open.
Operator: Our next question comes from Peter Galbo with Bank of America. Your line is open.
Operator: Our next question comes from Peter Galbo with Bank of America. Your line is open.
Our next question comes from Peter Delpo with Bank of America. Your line is open.
Bryan Spillane: Hey, guys. Good morning. Thanks for the question. John, I was hoping just from your prepared remarks to dig in on a couple of topics. I know we've talked about the mix impact, but maybe you could just give a little bit more detail. I think you specifically called out some timing of investments, and there was a bit of commentary more focused on EMEA and Asia Pacific, so just any additional detail there. And then just the second part, John, in your remarks, I think you talked about maybe a headwind at the equity income line, not only related to some of the refranchising, but some other initiatives. Just how much of a hit that is to the EPS for the year would be helpful as we try to think about bridging operating income down to EPS? Thanks very much.
Bryan Spillane: Hey, guys. Good morning. Thanks for the question. John, I was hoping just from your prepared remarks to dig in on a couple of topics. I know we've talked about the mix impact, but maybe you could just give a little bit more detail. I think you specifically called out some timing of investments, and there was a bit of commentary more focused on EMEA and Asia Pacific, so just any additional detail there. And then just the second part, John, in your remarks, I think you talked about maybe a headwind at the equity income line, not only related to some of the refranchising, but some other initiatives. Just how much of a hit that is to the EPS for the year would be helpful as we try to think about bridging operating income down to EPS? Thanks very much.
Bryan Spillane: Hey, guys. Good morning. Thanks for the question. John, I was hoping just from your prepared remarks to dig in on a couple of topics. I know we've talked about the mix impact, but maybe you could just give a little bit more detail. I think you specifically called out some timing of investments, and there was a bit of commentary more focused on EMEA and Asia Pacific, so just any additional detail there. And then just the second part, John, in your remarks, I think you talked about maybe a headwind at the equity income line, not only related to some of the refranchising, but some other initiatives. Just how much of a hit that is to the EPS for the year would be helpful as we try to think about bridging operating income down to EPS? Thanks very much.
Peter Grom: Hey, guys. Good morning. Thanks for the question. John, I was hoping just from your prepared remarks to dig in on a couple of topics. I know we've talked about the mix impact, but maybe you could just give a little bit more detail. I think you specifically called out some timing of investments, and there was a bit of commentary more focused on EMEA and Asia Pacific, so just any additional detail there. And then just the second part, John, in your remarks, I think you talked about maybe a headwind at the equity income line, not only related to some of the refranchising, but some other initiatives. Just how much of a hit that is to the EPS for the year would be helpful as we try to think about bridging operating income down to EPS? Thanks very much.
Hey guys. Good morning, thanks. Thanks for the question. Um, John, I I was hoping just from your prepared remarks to, to dig in, on, on a couple of topics. I know, we've we've talked about the mix impact, but but maybe you could just give a little bit more detail. I think you specifically called out some some timing of Investments and and there was a bit commentary more focused on on emia and Asia Pac. So, just any additional detail there and then the just the second part, um, John in your remarks, I think you talked about maybe a headwind, um, at the equity income line, not only related to to, um, some of the ref franchising. But some other initiatives just how much of a hit that is, to, to the EPS, um, for the year would be helpful as we try to think about bridging, uh, operating income down to EPS. Thanks very much.
John Murphy: Thank you. On the first question, yeah, maybe just a little bit more detail. There were 3 primary drivers, and each of them roughly worth about the same, about a point each. So we have had the impact of some of the emerging markets growing faster than the developed markets. And typically, the emerging markets are slightly lower margin. Secondly, in a couple of the developed markets, we've had some categories that, in Q4, [were] of a lower margin nature, not dramatically, but still lower, performing better than the higher ones. So that was another point. And then the third point relates primarily to just some of the timing of marketing investments, primarily to both factor in the end of the year and the fast-start programs that we have in place around the world.
John Murphy: Thank you. On the first question, yeah, maybe just a little bit more detail. There were 3 primary drivers, and each of them roughly worth about the same, about a point each. So we have had the impact of some of the emerging markets growing faster than the developed markets. And typically, the emerging markets are slightly lower margin. Secondly, in a couple of the developed markets, we've had some categories that, in Q4, [were] of a lower margin nature, not dramatically, but still lower, performing better than the higher ones. So that was another point. And then the third point relates primarily to just some of the timing of marketing investments, primarily to both factor in the end of the year and the fast-start programs that we have in place around the world.
John Murphy: Thank you. On the first question, yeah, maybe just a little bit more detail. There were 3 primary drivers, and each of them roughly worth about the same, about a point each. So we have had the impact of some of the emerging markets growing faster than the developed markets. And typically, the emerging markets are slightly lower margin. Secondly, in a couple of the developed markets, we've had some categories that, in Q4, [were] of a lower margin nature, not dramatically, but still lower, performing better than the higher ones. So that was another point. And then the third point relates primarily to just some of the timing of marketing investments, primarily to both factor in the end of the year and the fast-start programs that we have in place around the world.
John Murphy: Thank you. On the first question, yeah, maybe just a little bit more detail. There were 3 primary drivers, and each of them roughly worth about the same, about a point each. So we have had the impact of some of the emerging markets growing faster than the developed markets. And typically, the emerging markets are slightly lower margin. Secondly, in a couple of the developed markets, we've had some categories that, in Q4, [were] of a lower margin nature, not dramatically, but still lower, performing better than the higher ones. So that was another point. And then the third point relates primarily to just some of the timing of marketing investments, primarily to both factor in the end of the year and the fast-start programs that we have in place around the world.
Thank you, uh, on the the fourth question. Yeah, the let me just a little bit more, a little bit more detail.
yeah, there's
There were three primary drivers, and each of them was roughly worth about the same—about a point each.
so, we've had
the impact of
The emergency markets are slightly lower margin.
Um, secondly, in a couple of the developed markets. We've had, uh, some categories that in the fourth quarter, uh, of a lower margin nature, not not dramatically, but but still lower. Um,
John Murphy: So it's the first time that I can remember, going back, gosh, how many quarters, to have three of those types of effects hitting us in the same quarter. So it's a one-off more than something to think of as a trend going forward. And as James said earlier, you take a step back and look at the full year. And the way we've built our guidance for 2025, I think, reflects more the full-year view. And that's been a good benchmark on which to guide for next year or, sorry, for this year. Oh, I'm sorry. In a second, you had a second question. Yes. The.
John Murphy: So it's the first time that I can remember, going back, gosh, how many quarters, to have three of those types of effects hitting us in the same quarter. So it's a one-off more than something to think of as a trend going forward. And as James said earlier, you take a step back and look at the full year. And the way we've built our guidance for 2025, I think, reflects more the full-year view. And that's been a good benchmark on which to guide for next year or, sorry, for this year. Oh, I'm sorry. In a second, you had a second question. Yes. The.
John Murphy: So it's the first time that I can remember, going back, gosh, how many quarters, to have three of those types of effects hitting us in the same quarter. So it's a one-off more than something to think of as a trend going forward. And as James said earlier, you take a step back and look at the full year. And the way we've built our guidance for 2025, I think, reflects more the full-year view. And that's been a good benchmark on which to guide for next year or, sorry, for this year. Oh, I'm sorry. In a second, you had a second question. Yes. The.
John Murphy: So it's the first time that I can remember, going back, gosh, how many quarters, to have three of those types of effects hitting us in the same quarter. So it's a one-off more than something to think of as a trend going forward. And as James said earlier, you take a step back and look at the full year. And the way we've built our guidance for 2025, I think, reflects more the full-year view. And that's been a good benchmark on which to guide for next year or, sorry, for this year. Oh, I'm sorry. In a second, you had a second question. Yes. The.
Performing better than the, the higher ones. So that was another point. And then the the third Point relates primarily to just some of the timing of marketing Investments, primarily to um both factoring uh the the end of the year and the fast Start programs that we have in place around the world. So it's very, it's it's the first time that I can remember going back
Gosh. How many quarters uh to have 3 of those types of effects hitting Us in the same quarter? So it's um it's a 1 off more than um something to uh to to think of as a trend going forward. And as James said, earlier, you take a step back and look at the at the full year and, um, where we've built our guidance for 25. I think reflects more fuzzier View. And, and that's been a good, a good Benchmark in which to to guide for next year, or so sorry for this year.
um,
Bryan Spillane: Equity rate.
Bryan Spillane: Equity rate.
Bryan Spillane: Equity rate.
Peter Grom: Equity rate.
John Murphy: Yeah. So as you said, the primary driver that I alluded to is the sale of the Consolidated shares towards the end of the year. And there's a lot of puts and takes that go into the equity income line. So I won't get into all of that detail. But the primary driver is the lost equity income on Consolidated.
John Murphy: Yeah. So as you said, the primary driver that I alluded to is the sale of the Consolidated shares towards the end of the year. And there's a lot of puts and takes that go into the equity income line. So I won't get into all of that detail. But the primary driver is the lost equity income on Consolidated.
John Murphy: Yeah. So as you said, the primary driver that I alluded to is the sale of the Consolidated shares towards the end of the year. And there's a lot of puts and takes that go into the equity income line. So I won't get into all of that detail. But the primary driver is the lost equity income on Consolidated.
John Murphy: Yeah. So as you said, the primary driver that I alluded to is the sale of the Consolidated shares towards the end of the year. And there's a lot of puts and takes that go into the equity income line. So I won't get into all of that detail. But the primary driver is the lost equity income on Consolidated.
I'm sorry in the second you you had a second question. Yes. Um the yeah, so the uh the as you said the primary driver uh that I alluded to is the is the sale of the Consolidated shares towards the end of the year. Um,
And, you know, there's a lot of puts and takes that go into the, into the equity income line. So I—I want, I want, um, get into all of, all of that detail. Uh, but the, the, the primary driver is the, is the last equity income on, on consolidated.
Operator: Our next question comes from Peter Grom of UBS. Your line is open.
Operator: Our next question comes from Peter Grom of UBS. Your line is open.
Operator: Our next question comes from Peter Grom of UBS. Your line is open.
Operator: Our next question comes from Peter Grom of UBS. Your line is open.
Our next question comes from Peter, Graham of UBS. Your line is open.
Peter Grom: Great. Thank you. Good morning, everyone. Congratulations to you both as well. I had a cash flow question. Just maybe with a much stronger year expected on the cash flow front in 2026, we'd love an update on your capital allocation strategy and specifically whether you would consider leaning further into any of your four strategic priorities in the year ahead. Thanks.
Peter Grom: Great. Thank you. Good morning, everyone. Congratulations to you both as well. I had a cash flow question. Just maybe with a much stronger year expected on the cash flow front in 2026, we'd love an update on your capital allocation strategy and specifically whether you would consider leaning further into any of your four strategic priorities in the year ahead. Thanks.
Peter Grom: Great. Thank you. Good morning, everyone. Congratulations to you both as well. I had a cash flow question. Just maybe with a much stronger year expected on the cash flow front in 2026, we'd love an update on your capital allocation strategy and specifically whether you would consider leaning further into any of your four strategic priorities in the year ahead. Thanks.
Peter Grom: Great. Thank you. Good morning, everyone. Congratulations to you both as well. I had a cash flow question. Just maybe with a much stronger year expected on the cash flow front in 2026, we'd love an update on your capital allocation strategy and specifically whether you would consider leaning further into any of your four strategic priorities in the year ahead. Thanks.
Great. Thank you and and good morning everyone and congratulations to you to you both as well. Um I had a cash flow question so just maybe with a much stronger year expected on on the cash flow front in 26. Would love an update on your Capital allocation strategy and specifically whether you would consider leaning further into any of your course, strategic priorities in the year ahead. Thanks.
John Murphy: Great topic. I think the starting point here is to look at the underlying drivers over the last few years. We've had some unusual items, the IRS tax deposit and the fairlife contingent consideration, which I know on a year-to-year basis has been a little confusing, perhaps. But for me, what I look at is the underlying momentum coming from the business. And we see that having had a positive impact on a steady basis. As I mentioned in my prepared remarks, there's a very clear picture as to how we want to best utilize the cash that is coming in. When you go to the top two line items, we are investing in the business as the business needs. About a quarter of our capital investment this year and last year goes towards the franchises that we still own in Africa and India.
John Murphy: Great topic. I think the starting point here is to look at the underlying drivers over the last few years. We've had some unusual items, the IRS tax deposit and the fairlife contingent consideration, which I know on a year-to-year basis has been a little confusing, perhaps. But for me, what I look at is the underlying momentum coming from the business. And we see that having had a positive impact on a steady basis. As I mentioned in my prepared remarks, there's a very clear picture as to how we want to best utilize the cash that is coming in. When you go to the top two line items, we are investing in the business as the business needs. About a quarter of our capital investment this year and last year goes towards the franchises that we still own in Africa and India.
John Murphy: Great topic. I think the starting point here is to look at the underlying drivers over the last few years. We've had some unusual items, the IRS tax deposit and the fairlife contingent consideration, which I know on a year-to-year basis has been a little confusing, perhaps. But for me, what I look at is the underlying momentum coming from the business. And we see that having had a positive impact on a steady basis. As I mentioned in my prepared remarks, there's a very clear picture as to how we want to best utilize the cash that is coming in. When you go to the top two line items, we are investing in the business as the business needs. About a quarter of our capital investment this year and last year goes towards the franchises that we still own in Africa and India.
John Murphy: Great topic. I think the starting point here is to look at the underlying drivers over the last few years. We've had some unusual items, the IRS tax deposit and the fairlife contingent consideration, which I know on a year-to-year basis has been a little confusing, perhaps. But for me, what I look at is the underlying momentum coming from the business. And we see that having had a positive impact on a steady basis. As I mentioned in my prepared remarks, there's a very clear picture as to how we want to best utilize the cash that is coming in. When you go to the top two line items, we are investing in the business as the business needs. About a quarter of our capital investment this year and last year goes towards the franchises that we still own in Africa and India.
Uh, great, great topic. Um, you know, I think the the starting point here is to get is to look at the underlying drivers.
Over the last few years, we've had
Some.
Unusual items, the uh the IRS tax deposit and the the fair life contingent consideration which which I know in a year to year basis has been a little confusing perhaps but um for me what I look at is the underlying momentum coming from the business and and we we see that having had a positive impact on steady basis.
Um, as I mentioned in my preferred remarks, there's, you know, there's a very clear picture as to how we want to best utilize, the cash that is coming in. Um, when you go, when you go to the, the top 2 line items, we are investing in the business as the business needs. Um, more about a quarter of the of our of our Capital Investments this year. And, and last year, it goes towards
John Murphy: We have highlighted investments we're making in our finished goods businesses elsewhere in the world, notably with fairlife. And we also have the opportunity in a number of parts of the world to shore up capacity for our concentrate business as it continues to be challenged in some areas to supply market needs. But that's been a priority. Will continue to be. And there's not a lot of controversy about it. Secondly, with regard to the dividend, we continue to be very proud of the 63-year track record of growing the dividend. And we are supportive of that trend continuing. And then what's left longer-term is the idea of being both flexible and opportunistic when it comes to any inorganic opportunities and share repurchasing.
John Murphy: We have highlighted investments we're making in our finished goods businesses elsewhere in the world, notably with fairlife. And we also have the opportunity in a number of parts of the world to shore up capacity for our concentrate business as it continues to be challenged in some areas to supply market needs. But that's been a priority. Will continue to be. And there's not a lot of controversy about it. Secondly, with regard to the dividend, we continue to be very proud of the 63-year track record of growing the dividend. And we are supportive of that trend continuing. And then what's left longer-term is the idea of being both flexible and opportunistic when it comes to any inorganic opportunities and share repurchasing.
John Murphy: We have highlighted investments we're making in our finished goods businesses elsewhere in the world, notably with fairlife. And we also have the opportunity in a number of parts of the world to shore up capacity for our concentrate business as it continues to be challenged in some areas to supply market needs. But that's been a priority. Will continue to be. And there's not a lot of controversy about it. Secondly, with regard to the dividend, we continue to be very proud of the 63-year track record of growing the dividend. And we are supportive of that trend continuing. And then what's left longer-term is the idea of being both flexible and opportunistic when it comes to any inorganic opportunities and share repurchasing.
John Murphy: We have highlighted investments we're making in our finished goods businesses elsewhere in the world, notably with fairlife. And we also have the opportunity in a number of parts of the world to shore up capacity for our concentrate business as it continues to be challenged in some areas to supply market needs. But that's been a priority. Will continue to be. And there's not a lot of controversy about it. Secondly, with regard to the dividend, we continue to be very proud of the 63-year track record of growing the dividend. And we are supportive of that trend continuing. And then what's left longer-term is the idea of being both flexible and opportunistic when it comes to any inorganic opportunities and share repurchasing.
The franchises that we still on in Africa and India.
We have, um, highlighted Investments for making in our finished goods. Businesses elsewhere in the world notably with Fair life.
and we also have
uh, the
The opportunity in a number of parts of the world to shore up capacity, for a concentrate business, as it continues to, um, be challenged in in some areas to supply Market needs. Um, but that's been a priority, we'll continue to be. Um, there is, uh, there's no, you know, there's not a lot of controversy about it. Secondly, with regard to the dividend, uh, we continue to be very proud of the 63 year.
John Murphy: For 2026 in particular, the idea of going into 2026 is to have as much optionality as possible to manage some specific variables, one of which is the outcome of the tax case that we have had with the IRS for many years, which we expect to certainly have a significant milestone towards the end of this year, early next year. It's important for us to feel good about whatever outcome happens either in that or in other areas, that we have what we need to deal with it. So 2026, very clear on the flexibility needed. In the meantime, we'll continue to focus the rest of the company on the core business, driving cash so that those longer-term priorities, as I just outlined, can get the attention that they deserve.
John Murphy: For 2026 in particular, the idea of going into 2026 is to have as much optionality as possible to manage some specific variables, one of which is the outcome of the tax case that we have had with the IRS for many years, which we expect to certainly have a significant milestone towards the end of this year, early next year. It's important for us to feel good about whatever outcome happens either in that or in other areas, that we have what we need to deal with it. So 2026, very clear on the flexibility needed. In the meantime, we'll continue to focus the rest of the company on the core business, driving cash so that those longer-term priorities, as I just outlined, can get the attention that they deserve.
John Murphy: For 2026 in particular, the idea of going into 2026 is to have as much optionality as possible to manage some specific variables, one of which is the outcome of the tax case that we have had with the IRS for many years, which we expect to certainly have a significant milestone towards the end of this year, early next year. It's important for us to feel good about whatever outcome happens either in that or in other areas, that we have what we need to deal with it. So 2026, very clear on the flexibility needed. In the meantime, we'll continue to focus the rest of the company on the core business, driving cash so that those longer-term priorities, as I just outlined, can get the attention that they deserve.
John Murphy: For 2026 in particular, the idea of going into 2026 is to have as much optionality as possible to manage some specific variables, one of which is the outcome of the tax case that we have had with the IRS for many years, which we expect to certainly have a significant milestone towards the end of this year, early next year. It's important for us to feel good about whatever outcome happens either in that or in other areas, that we have what we need to deal with it. So 2026, very clear on the flexibility needed. In the meantime, we'll continue to focus the rest of the company on the core business, driving cash so that those longer-term priorities, as I just outlined, can get the attention that they deserve.
Variables 1 of which is the outcome of the tax case that we have had with the IRS for many years, which we expect to certainly have a, um, have a significant Milestone towards the end of this year, uh, early next year and, um, and it's important for us to, to feel good about whatever outcome.
Happens either and that, or in other areas that we have, um, what we need to to deal with it. So, um, 26, very clear on on the flexibility needed and, um, in the meantime, we'll continue to focus the rest of the company on the on, on, um, on the Core Business driving cache. So, that, the those longer term priorities as I just outlined can get the attention that they, that they deserve.
Operator: Our next question comes from Kaumil Gajrawala with Jefferies. Your line is open.
Operator: Our next question comes from Kaumil Gajrawala with Jefferies. Your line is open.
Operator: Our next question comes from Kaumil Gajrawala with Jefferies. Your line is open.
Operator: Our next question comes from Kaumil Gajrawala with Jefferies. Your line is open.
Our next question comes from Camille Gajra Walla with Jefferies. Your line is open.
Kaumil Gajrawala: Hi. I'd like to maybe step back to maybe restart it on the questions of the call, which is just sort of understanding the direction of travel for 2026. It looks like from an EPS perspective, you grew 4% with a 5% hit from FX. This year, you're expecting 7 to 8 with a 3-point benefit. So making adjustments there, it looks like quite a slowdown. So just curious what's underneath that. Is it investment? Are you just being conservative because it's the beginning of the year, or is there something else in there? Thanks.
Kaumil Gajrawala: Hi. I'd like to maybe step back to maybe restart it on the questions of the call, which is just sort of understanding the direction of travel for 2026. It looks like from an EPS perspective, you grew 4% with a 5% hit from FX. This year, you're expecting 7 to 8 with a 3-point benefit. So making adjustments there, it looks like quite a slowdown. So just curious what's underneath that. Is it investment? Are you just being conservative because it's the beginning of the year, or is there something else in there? Thanks.
Kaumil Gajrawala: Hi. I'd like to maybe step back to maybe restart it on the questions of the call, which is just sort of understanding the direction of travel for 2026. It looks like from an EPS perspective, you grew 4% with a 5% hit from FX. This year, you're expecting 7 to 8 with a 3-point benefit. So making adjustments there, it looks like quite a slowdown. So just curious what's underneath that. Is it investment? Are you just being conservative because it's the beginning of the year, or is there something else in there? Thanks.
Kaumil Gajrawala: Hi. I'd like to maybe step back to maybe restart it on the questions of the call, which is just sort of understanding the direction of travel for 2026. It looks like from an EPS perspective, you grew 4% with a 5% hit from FX. This year, you're expecting 7 to 8 with a 3-point benefit. So making adjustments there, it looks like quite a slowdown. So just curious what's underneath that. Is it investment? Are you just being conservative because it's the beginning of the year, or is there something else in there? Thanks.
Uh, hi. I'd like to maybe step back. Um, maybe we started on the questions of the call, which is just sort of understanding the direction of travel for 2026. Um, you know, it looks like from an EPS perspective, uh, you grew 4% with a 5% hit from FX this year, you're expecting 7 to 8 with 3 point benefits. So making adjustments there it looks like quite a uh you know, quite a Slowdown. So I'm just curious. What your, you know what's underneath that is
John Murphy: Yeah. Let me take that and complement the comments already made. The starting point is what do we think the top line can deliver? And when you look at the guidance we provided, the 4% to 5%, it reflects the sum of many parts around the world. We have momentum in some markets, and we've had challenges in other markets coming out of 2025. We expect to be able to continue in the markets going well and over the course of the year to have the kind of recovery that this guidance deserves. So that's part one, really important. Secondly, we've had a long-standing conversation on staying ahead of the curve when it comes to investing in our brands, in our markets with our bottling partners, and also in how we run the company.
John Murphy: Yeah. Let me take that and complement the comments already made. The starting point is what do we think the top line can deliver? And when you look at the guidance we provided, the 4% to 5%, it reflects the sum of many parts around the world. We have momentum in some markets, and we've had challenges in other markets coming out of 2025. We expect to be able to continue in the markets going well and over the course of the year to have the kind of recovery that this guidance deserves. So that's part one, really important. Secondly, we've had a long-standing conversation on staying ahead of the curve when it comes to investing in our brands, in our markets with our bottling partners, and also in how we run the company.
John Murphy: Yeah. Let me take that and complement the comments already made. The starting point is what do we think the top line can deliver? And when you look at the guidance we provided, the 4% to 5%, it reflects the sum of many parts around the world. We have momentum in some markets, and we've had challenges in other markets coming out of 2025. We expect to be able to continue in the markets going well and over the course of the year to have the kind of recovery that this guidance deserves. So that's part one, really important. Secondly, we've had a long-standing conversation on staying ahead of the curve when it comes to investing in our brands, in our markets with our bottling partners, and also in how we run the company.
John Murphy: Yeah. Let me take that and complement the comments already made. The starting point is what do we think the top line can deliver? And when you look at the guidance we provided, the 4% to 5%, it reflects the sum of many parts around the world. We have momentum in some markets, and we've had challenges in other markets coming out of 2025. We expect to be able to continue in the markets going well and over the course of the year to have the kind of recovery that this guidance deserves. So that's part one, really important. Secondly, we've had a long-standing conversation on staying ahead of the curve when it comes to investing in our brands, in our markets with our bottling partners, and also in how we run the company.
Investment. Are you just being conservative? Because if the beginning of the year, isn't something else in there. Thanks. Yeah.
Let me take that.
Compliment, the comments already made, you know, the the starting point is what do we think the Top Line can deliver?
And when you look at the the guidance, we provided the 4 to 5% it reflects the sum of many parts around the world. We have momentum in some markets and we've had challenges in other markets coming out of 25. Um and we expect we expect to be able to um continue to in the markets going well and and over the course of the year to have the kind of recovery that that this guidance deserves. So that that's that's part 1 really important. Um, secondly, you know, we we've had a, a long-standing conversation on
Staying ahead of the curve when it comes to investing in our brands.
Um, in our markets, with our bottling partners,
John Murphy: Henrique will talk next week about some of the priorities we have to continue to build capabilities. And so there is a bias going into next year to invest somewhat ahead of the curve. And then the third area, just to keep in mind, is that we've called it out, but it's important that some structural cycling as well as some of the below-the-line items that I mentioned earlier regarding Coke. So I think we're being prudent going into 2026 given the dynamics at the top line level and given the work that's underway in a number of key markets to get momentum, and particularly to get volume momentum to where it needs to be.
John Murphy: Henrique will talk next week about some of the priorities we have to continue to build capabilities. And so there is a bias going into next year to invest somewhat ahead of the curve. And then the third area, just to keep in mind, is that we've called it out, but it's important that some structural cycling as well as some of the below-the-line items that I mentioned earlier regarding Coke. So I think we're being prudent going into 2026 given the dynamics at the top line level and given the work that's underway in a number of key markets to get momentum, and particularly to get volume momentum to where it needs to be.
John Murphy: Henrique will talk next week about some of the priorities we have to continue to build capabilities. And so there is a bias going into next year to invest somewhat ahead of the curve. And then the third area, just to keep in mind, is that we've called it out, but it's important that some structural cycling as well as some of the below-the-line items that I mentioned earlier regarding Coke. So I think we're being prudent going into 2026 given the dynamics at the top line level and given the work that's underway in a number of key markets to get momentum, and particularly to get volume momentum to where it needs to be.
John Murphy: Henrique will talk next week about some of the priorities we have to continue to build capabilities. And so there is a bias going into next year to invest somewhat ahead of the curve. And then the third area, just to keep in mind, is that we've called it out, but it's important that some structural cycling as well as some of the below-the-line items that I mentioned earlier regarding Coke. So I think we're being prudent going into 2026 given the dynamics at the top line level and given the work that's underway in a number of key markets to get momentum, and particularly to get volume momentum to where it needs to be.
And also in how we run the company. You know, Enrique will talk next week about some of the priorities we have to continue to build capabilities. And so there is a bias going into next year to, uh, to, to invest someone ahead of the curve. And then the, the, the the third area is just to keep in mind is that we have, um, we've called it out. But it's important to some structural, um,
Some structural cycling, uh, as well as some of the, um, below the line items that I mentioned earlier regarding regarding Coke. So, uh, you know, we're we're being, I think we're being prudent going into 26, given the Dynamics
At the Top Line level and given the work that's underway in a number of key markets to get momentum and particularly to get volume momentum to to better today.
Operator: Our next question comes from Charlie Higgs of Redburn Atlantic. Your line is open.
Operator: Our next question comes from Charlie Higgs of Redburn Atlantic. Your line is open.
Operator: Our next question comes from Charlie Higgs of Redburn Atlantic. Your line is open.
Operator: Our next question comes from Charlie Higgs of Redburn Atlantic. Your line is open.
Our next question.
B. Hicks, Redbarn. Your line is open.
Charlie Higgs: Thank you. And yeah, just echoing, congrats, James, Henrique, and Robin on your new roles. All the best for the future. And yeah, great endings, James. I just wanted to ask about your move into the role of executive chairman. It sounds slightly more involved than the traditional chairman role. Is that interpretation correct? And could you maybe just outline what your key priorities are in the role? And then I was just curious, Henrique, on your comments on more to do regarding innovation. I'm sure we'll hear more next week, so I don't want to jump the gun too much. But could you perhaps just give some high-level views of where you see the most opportunity and how to execute on those in the context of a slightly weaker global consumer environment? Thank you.
Charlie Higgs: Thank you. And yeah, just echoing, congrats, James, Henrique, and Robin on your new roles. All the best for the future. And yeah, great endings, James. I just wanted to ask about your move into the role of executive chairman. It sounds slightly more involved than the traditional chairman role. Is that interpretation correct? And could you maybe just outline what your key priorities are in the role? And then I was just curious, Henrique, on your comments on more to do regarding innovation. I'm sure we'll hear more next week, so I don't want to jump the gun too much. But could you perhaps just give some high-level views of where you see the most opportunity and how to execute on those in the context of a slightly weaker global consumer environment? Thank you.
Charlie Higgs: Thank you. And yeah, just echoing, congrats, James, Henrique, and Robin on your new roles. All the best for the future. And yeah, great endings, James. I just wanted to ask about your move into the role of executive chairman. It sounds slightly more involved than the traditional chairman role. Is that interpretation correct? And could you maybe just outline what your key priorities are in the role? And then I was just curious, Henrique, on your comments on more to do regarding innovation. I'm sure we'll hear more next week, so I don't want to jump the gun too much. But could you perhaps just give some high-level views of where you see the most opportunity and how to execute on those in the context of a slightly weaker global consumer environment? Thank you.
Charlie Higgs: Thank you. And yeah, just echoing, congrats, James, Henrique, and Robin on your new roles. All the best for the future. And yeah, great endings, James. I just wanted to ask about your move into the role of executive chairman. It sounds slightly more involved than the traditional chairman role. Is that interpretation correct? And could you maybe just outline what your key priorities are in the role? And then I was just curious, Henrique, on your comments on more to do regarding innovation. I'm sure we'll hear more next week, so I don't want to jump the gun too much. But could you perhaps just give some high-level views of where you see the most opportunity and how to execute on those in the context of a slightly weaker global consumer environment? Thank you.
Thank you. And yeah, just echoing. Congrats. James. Enrique and Robin on on your new roles, all the best for the future. And, yeah, great Innings. James, I just wanted to ask about your move into the role of executive chairman. It sounds slightly more involved than the traditional chairman role. Is that interpretation correct? And could you, maybe just outline what your key priorities are in the role and then I was just curious. Enrique on your comments on more to do regarding Innovation. I'm sure we'll hear more next week so I don't want to jump a gun too much. But could you perhaps just give some high-level views of where you see the most opportunity and how to execute on those in the context of a slightly weaker Global consumer environment? Thank you.
James Quincey: Yeah, sure. Thanks, Charlie. I'll share a few thoughts and then pass the baton on figuratively and literally to Henrique to talk about the innovation question. I think executive chair is clearly more than just a full-on, independent, non-executive chair because I'll put the easiest way to understand it is there are two buckets. One, which is things that the executive chair can do basically at the asking of the CEO to help him operate the business. So there's a whole load of stakeholders and people and things. He has a very full agenda. Being CEO, there's a very full agenda at The Coca-Cola Company, notwithstanding there's a large team to help. And so there's an opportunity to help bridge that transition by continuing to carry the can on a set of things. But let's be clear. The person running the company is the CEO.
James Quincey: Yeah, sure. Thanks, Charlie. I'll share a few thoughts and then pass the baton on figuratively and literally to Henrique to talk about the innovation question. I think executive chair is clearly more than just a full-on, independent, non-executive chair because I'll put the easiest way to understand it is there are two buckets. One, which is things that the executive chair can do basically at the asking of the CEO to help him operate the business. So there's a whole load of stakeholders and people and things. He has a very full agenda. Being CEO, there's a very full agenda at The Coca-Cola Company, notwithstanding there's a large team to help. And so there's an opportunity to help bridge that transition by continuing to carry the can on a set of things. But let's be clear. The person running the company is the CEO.
James Quincey: Yeah, sure. Thanks, Charlie. I'll share a few thoughts and then pass the baton on figuratively and literally to Henrique to talk about the innovation question. I think executive chair is clearly more than just a full-on, independent, non-executive chair because I'll put the easiest way to understand it is there are two buckets. One, which is things that the executive chair can do basically at the asking of the CEO to help him operate the business. So there's a whole load of stakeholders and people and things. He has a very full agenda. Being CEO, there's a very full agenda at The Coca-Cola Company, notwithstanding there's a large team to help. And so there's an opportunity to help bridge that transition by continuing to carry the can on a set of things. But let's be clear. The person running the company is the CEO.
James Quincey: Yeah, sure. Thanks, Charlie. I'll share a few thoughts and then pass the baton on figuratively and literally to Henrique to talk about the innovation question. I think executive chair is clearly more than just a full-on, independent, non-executive chair because I'll put the easiest way to understand it is there are two buckets. One, which is things that the executive chair can do basically at the asking of the CEO to help him operate the business. So there's a whole load of stakeholders and people and things. He has a very full agenda. Being CEO, there's a very full agenda at The Coca-Cola Company, notwithstanding there's a large team to help. And so there's an opportunity to help bridge that transition by continuing to carry the can on a set of things. But let's be clear. The person running the company is the CEO.
James Quincey: The executive chair is there to help on certain issues where the CEO needs it, and that's part of the transition. The other piece of the puzzle is the chair is involved because the board's involved. I mean, the chair is also the representative, in a way, of the board. There are a set of issues around Capital Allocation, risk, long-term talent where the board is obviously interested. And there, I can help work with Henrique and the team on making sure that we have the best possible dialogue at the board level on those issues. That's the simple equation.
James Quincey: The executive chair is there to help on certain issues where the CEO needs it, and that's part of the transition. The other piece of the puzzle is the chair is involved because the board's involved. I mean, the chair is also the representative, in a way, of the board. There are a set of issues around Capital Allocation, risk, long-term talent where the board is obviously interested. And there, I can help work with Henrique and the team on making sure that we have the best possible dialogue at the board level on those issues. That's the simple equation.
James Quincey: The executive chair is there to help on certain issues where the CEO needs it, and that's part of the transition. The other piece of the puzzle is the chair is involved because the board's involved. I mean, the chair is also the representative, in a way, of the board. There are a set of issues around Capital Allocation, risk, long-term talent where the board is obviously interested. And there, I can help work with Henrique and the team on making sure that we have the best possible dialogue at the board level on those issues. That's the simple equation.
James Quincey: The executive chair is there to help on certain issues where the CEO needs it, and that's part of the transition. The other piece of the puzzle is the chair is involved because the board's involved. I mean, the chair is also the representative, in a way, of the board. There are a set of issues around Capital Allocation, risk, long-term talent where the board is obviously interested. And there, I can help work with Henrique and the team on making sure that we have the best possible dialogue at the board level on those issues. That's the simple equation.
Asking is the CEO to help him operate the business. There's a whole load of stakeholders and people and things. It's, he has a very apologetic and they're being CEOs are very full agenda that the COA company. Not withstanding, there's a large team of help. And so there's a, there's an opportunity to help bridge that transition. I can continuing to carry the can uh on a set of things but let's be clear. The person running the company is the CEO of the executive chair. Is there to help on certain issues, uh, where the CEO needs it, and that's part of the transition. The other pieces of the puzzle is that is the chair is involved. Because the board's involved. I mean, the, the chair is also the representative, uh, in a way of the board that are a set of issues around Capital allocations, uh, risk, uh, long-term Talent, uh, where the board is obviously interested. And there I can help work uh, with Enrique. And the team are on making sure that we have the best possible dialogue at the board. Level on those issues. That's the simple equation.
Henrique Braun: Jack and Charlie, and Anne's spot on. We're going to share more next week at CAGNY, and we're very excited about it. But let me give you a hint as to what I meant by that in the earlier remarks. Look, we're definitely making great progress on innovation over the years. And you remember that we went from 400 brands to about 170, pruning those brands to continue to accelerate the pace on bigger and better brands connected to consumers. And part of that was to improve our batting ratio there, out of the park on innovation, which we have been doing. We've been very disciplined about getting that success ratio better than the past. And we believe that now, just looking at the insights from the different markets, that the world continues to be really open, and the consumers looking for more innovation at the local level as well.
Henrique Braun: Jack and Charlie, and Anne's spot on. We're going to share more next week at CAGNY, and we're very excited about it. But let me give you a hint as to what I meant by that in the earlier remarks. Look, we're definitely making great progress on innovation over the years. And you remember that we went from 400 brands to about 170, pruning those brands to continue to accelerate the pace on bigger and better brands connected to consumers. And part of that was to improve our batting ratio there, out of the park on innovation, which we have been doing. We've been very disciplined about getting that success ratio better than the past. And we believe that now, just looking at the insights from the different markets, that the world continues to be really open, and the consumers looking for more innovation at the local level as well.
Henrique Braun: Jack and Charlie, and Anne's spot on. We're going to share more next week at CAGNY, and we're very excited about it. But let me give you a hint as to what I meant by that in the earlier remarks. Look, we're definitely making great progress on innovation over the years. And you remember that we went from 400 brands to about 170, pruning those brands to continue to accelerate the pace on bigger and better brands connected to consumers. And part of that was to improve our batting ratio there, out of the park on innovation, which we have been doing. We've been very disciplined about getting that success ratio better than the past. And we believe that now, just looking at the insights from the different markets, that the world continues to be really open, and the consumers looking for more innovation at the local level as well.
Henrique Braun: Jack and Charlie, and Anne's spot on. We're going to share more next week at CAGNY, and we're very excited about it. But let me give you a hint as to what I meant by that in the earlier remarks. Look, we're definitely making great progress on innovation over the years. And you remember that we went from 400 brands to about 170, pruning those brands to continue to accelerate the pace on bigger and better brands connected to consumers. And part of that was to improve our batting ratio there, out of the park on innovation, which we have been doing. We've been very disciplined about getting that success ratio better than the past. And we believe that now, just looking at the insights from the different markets, that the world continues to be really open, and the consumers looking for more innovation at the local level as well.
Jack, and, uh, Charlie and certainly, um, you spot some on. We're going to share more.
Next week at Skagen, I’m very excited about it. But let me give you a hint to hear about what I meant by that in the early remarks.
Look, we—we're definitely making great progress on innovation, uh, over the years. And now, you remember that we went from—
400 brands to about 170, pruning those brands to continue to accelerate the pace on.
Bigger and better Brands, you know, connected to Consumers, and part of that was to improve our, you know, batting, uh, ratio there out of the park on Innovation, uh, which we have been doing. We've been very disciplined about getting that success ratio, uh, better than the past and we believe that now just looking at the insights, from the different markets.
Henrique Braun: And that's where we believe that we can make a bigger difference. When I say that we want to be closer to the consumer, it's to understand them from a local point of view and not miss that opportunity to start in a local market, something that can turn into a billion-dollar brand later and then scale. I think we put a lot of effort and discipline on how to prune the brands, learn how to grow them, and leverage scale. Now it's about bringing more of those localness opportunities into the family and then accelerate. To that extent, you know that we announced today as well two more billion-dollar brands to the family. So innocent and Santa Clara from Mexico. That's a great example of something that started locally, and then we invested behind it.
Henrique Braun: And that's where we believe that we can make a bigger difference. When I say that we want to be closer to the consumer, it's to understand them from a local point of view and not miss that opportunity to start in a local market, something that can turn into a billion-dollar brand later and then scale. I think we put a lot of effort and discipline on how to prune the brands, learn how to grow them, and leverage scale. Now it's about bringing more of those localness opportunities into the family and then accelerate. To that extent, you know that we announced today as well two more billion-dollar brands to the family. So innocent and Santa Clara from Mexico. That's a great example of something that started locally, and then we invested behind it.
Henrique Braun: And that's where we believe that we can make a bigger difference. When I say that we want to be closer to the consumer, it's to understand them from a local point of view and not miss that opportunity to start in a local market, something that can turn into a billion-dollar brand later and then scale. I think we put a lot of effort and discipline on how to prune the brands, learn how to grow them, and leverage scale. Now it's about bringing more of those localness opportunities into the family and then accelerate. To that extent, you know that we announced today as well two more billion-dollar brands to the family. So innocent and Santa Clara from Mexico. That's a great example of something that started locally, and then we invested behind it.
Henrique Braun: And that's where we believe that we can make a bigger difference. When I say that we want to be closer to the consumer, it's to understand them from a local point of view and not miss that opportunity to start in a local market, something that can turn into a billion-dollar brand later and then scale. I think we put a lot of effort and discipline on how to prune the brands, learn how to grow them, and leverage scale. Now it's about bringing more of those localness opportunities into the family and then accelerate. To that extent, you know that we announced today as well two more billion-dollar brands to the family. So innocent and Santa Clara from Mexico. That's a great example of something that started locally, and then we invested behind it.
That the world continues to be really um, open and the consumers looking for more Innovation at the local level. And that's where we believe that we can make a bigger difference. When I say that we want to be closer to the consumer is to understand them from a local on a bill and not least that opportunity to start in a local market. Something that can turn into a billion dollar brand later and then scale it if we put a lot of efforts and discipline on how to prune the brands, learn how to grow them and leverage scale. Now it's about bringing more of those.
Henrique Braun: Now they're bigger brands, and a lot of the learnings from that can be turned into other places to bring more brands to that family. So more next week, but that's the idea. It's an evolution for where we are with an acceleration of innovation, being more creative to the healthy gen.
Henrique Braun: Now they're bigger brands, and a lot of the learnings from that can be turned into other places to bring more brands to that family. So more next week, but that's the idea. It's an evolution for where we are with an acceleration of innovation, being more creative to the healthy gen.
Henrique Braun: Now they're bigger brands, and a lot of the learnings from that can be turned into other places to bring more brands to that family. So more next week, but that's the idea. It's an evolution for where we are with an acceleration of innovation, being more creative to the healthy gen.
Henrique Braun: Now they're bigger brands, and a lot of the learnings from that can be turned into other places to bring more brands to that family. So more next week, but that's the idea. It's an evolution for where we are with an acceleration of innovation, being more creative to the healthy gen.
Loess uh, opportunities into the family and then accelerate to that extent, you know that we announced, uh, today as well. 2 more billion dollar branch of the family. So innocent and Santa Clara from from Mexico. That's a great example of something that started locally and then, uh, we invested behind it. Now, the bigger Brands and a lot of the learnings from that can be turned into other places to bring more Brands to that uh family. So more next week. But that's the idea, it's an evolution for where we are with an acceleration of innovation being more creative to the LTG.
Operator: Our next question comes from Carlos Laboy with HSBC. Your line is open.
Operator: Our next question comes from Carlos Laboy with HSBC. Your line is open.
Operator: Our next question comes from Carlos Laboy with HSBC. Your line is open.
Operator: Our next question comes from Carlos Laboy with HSBC. Your line is open.
Our next question.
Your line is open.
Carlos Laboy: Yes. Thank you. Good morning, James, John, Henrique. And thank you for the focus, clarity, and the growth. You previously said that you reinvest capital you raise from refranchising back into those markets. Should we expect a step up in marketing and innovation investments in India? And on a related basis, can you discuss for India the extent of the digital investments that you've been able to make in B2B platforms and advanced analytics and so forth for the purpose of more granular execution by point of sale before you refranchised? And what's your vision for how this demand fulfillment capability is going to evolve there? Thanks.
Carlos Laboy: Yes. Thank you. Good morning, James, John, Henrique. And thank you for the focus, clarity, and the growth. You previously said that you reinvest capital you raise from refranchising back into those markets. Should we expect a step up in marketing and innovation investments in India? And on a related basis, can you discuss for India the extent of the digital investments that you've been able to make in B2B platforms and advanced analytics and so forth for the purpose of more granular execution by point of sale before you refranchised? And what's your vision for how this demand fulfillment capability is going to evolve there? Thanks.
Carlos Laboy: Yes. Thank you. Good morning, James, John, Henrique. And thank you for the focus, clarity, and the growth. You previously said that you reinvest capital you raise from refranchising back into those markets. Should we expect a step up in marketing and innovation investments in India? And on a related basis, can you discuss for India the extent of the digital investments that you've been able to make in B2B platforms and advanced analytics and so forth for the purpose of more granular execution by point of sale before you refranchised? And what's your vision for how this demand fulfillment capability is going to evolve there? Thanks.
Carlos Laboy: Yes. Thank you. Good morning, James, John, Henrique. And thank you for the focus, clarity, and the growth. You previously said that you reinvest capital you raise from refranchising back into those markets. Should we expect a step up in marketing and innovation investments in India? And on a related basis, can you discuss for India the extent of the digital investments that you've been able to make in B2B platforms and advanced analytics and so forth for the purpose of more granular execution by point of sale before you refranchised? And what's your vision for how this demand fulfillment capability is going to evolve there? Thanks.
Yes, thank you. Good morning, uh, James, John, and Rican. Thank you for the focus, clarity, and the growth.
Um you you previously said that you reinvest Capital you raised from refraining back into into those markets.
Should we expect a step up in, in, in marketing and Innovation, investments in India?
Um, and on a related basis, can you discuss for India?
Henrique Braun: Hey, Carlos. Great to hear from you. So let me step back here because it's not only about India. I think it's a strategy that has been working for us. And John mentioned a few questions before that this idea of investing together, Bob Lewis and us, ahead of the curve. It's, number one, showing the belief that the system has on this industry. And on top of that, that we invest with that same idea in every market we operate in. That's very unique from the Coca-Cola. Every market has one mission, and it's important. So India, specifically speaking, we not only have been investing with our bottling partners ahead of the curve. I think we mentioned a few quarters back the level of investment that we had on new lines in India that has been unprecedented. That's just to give an idea about that investment.
Henrique Braun: Hey, Carlos. Great to hear from you. So let me step back here because it's not only about India. I think it's a strategy that has been working for us. And John mentioned a few questions before that this idea of investing together, Bob Lewis and us, ahead of the curve. It's, number one, showing the belief that the system has on this industry. And on top of that, that we invest with that same idea in every market we operate in. That's very unique from the Coca-Cola. Every market has one mission, and it's important. So India, specifically speaking, we not only have been investing with our bottling partners ahead of the curve. I think we mentioned a few quarters back the level of investment that we had on new lines in India that has been unprecedented. That's just to give an idea about that investment.
Henrique Braun: Hey, Carlos. Great to hear from you. So let me step back here because it's not only about India. I think it's a strategy that has been working for us. And John mentioned a few questions before that this idea of investing together, Bob Lewis and us, ahead of the curve. It's, number one, showing the belief that the system has on this industry. And on top of that, that we invest with that same idea in every market we operate in. That's very unique from the Coca-Cola. Every market has one mission, and it's important. So India, specifically speaking, we not only have been investing with our bottling partners ahead of the curve. I think we mentioned a few quarters back the level of investment that we had on new lines in India that has been unprecedented. That's just to give an idea about that investment.
Henrique Braun: Hey, Carlos. Great to hear from you. So let me step back here because it's not only about India. I think it's a strategy that has been working for us. And John mentioned a few questions before that this idea of investing together, Bob Lewis and us, ahead of the curve. It's, number one, showing the belief that the system has on this industry. And on top of that, that we invest with that same idea in every market we operate in. That's very unique from the Coca-Cola. Every market has one mission, and it's important. So India, specifically speaking, we not only have been investing with our bottling partners ahead of the curve. I think we mentioned a few quarters back the level of investment that we had on new lines in India that has been unprecedented. That's just to give an idea about that investment.
The extent of the digital Investments that you've been able to make in B2B platforms and advanced analytics and so forth for the purpose of more granular, execution by point of sale before you refrained from. And what's your vision for how? This demand cap fulfillment capability? Um is going to evolve their thanks
Hey, God, it's great to hear from you. Um,
so, let me step back here, because it's not only about the India, I think it's, it's, it's a strategy that, uh,
Is being working for us and John mentioned, you know, 2 questions before that, this idea of investing together the Butler and us.
Ahead of the curve. It's number 1.
On top of that, that we invested that same.
Idea in every Market, we operate that's that's very unique from the core, every Market has 1 Mission and it's important. So India, the specifically speaking,
uh, we not only
Henrique Braun: We'll continue to invest because this is a market for the future. We're still building the industry in there. That's why we need to continue to invest ahead of the curve because it's more almost on the motto that building will come, right? Because really, on this market, you can actually continue to push forward. Digital, it's part of this. It continues to be an opportunity in India, why, number one, because digitally speaking, the country's infrastructure, it's pretty high as well, has been an acceleration across the whole India in the last few years.
Henrique Braun: We'll continue to invest because this is a market for the future. We're still building the industry in there. That's why we need to continue to invest ahead of the curve because it's more almost on the motto that building will come, right? Because really, on this market, you can actually continue to push forward. Digital, it's part of this. It continues to be an opportunity in India, why, number one, because digitally speaking, the country's infrastructure, it's pretty high as well, has been an acceleration across the whole India in the last few years.
Henrique Braun: We'll continue to invest because this is a market for the future. We're still building the industry in there. That's why we need to continue to invest ahead of the curve because it's more almost on the motto that building will come, right? Because really, on this market, you can actually continue to push forward. Digital, it's part of this. It continues to be an opportunity in India, why, number one, because digitally speaking, the country's infrastructure, it's pretty high as well, has been an acceleration across the whole India in the last few years.
Henrique Braun: We'll continue to invest because this is a market for the future. We're still building the industry in there. That's why we need to continue to invest ahead of the curve because it's more almost on the motto that building will come, right? Because really, on this market, you can actually continue to push forward. Digital, it's part of this. It continues to be an opportunity in India, why, number one, because digitally speaking, the country's infrastructure, it's pretty high as well, has been an acceleration across the whole India in the last few years.
We have been investing with our bottling partners, uh, ahead of the curve. I think we mentioned a few quarters back, um, you know, the level of investment that we had on new lines, and, you know, that has been unprecedented. That's just to give an idea about that investment. And we will continue to invest because this is a market for the future. We're still building the industry in there, and that's why we need to continue to invest ahead of the curve, because it's more on, uh, almost on the model that the building will come, right? Because really, on these markets, you can actually continue to, to push forward.
Digital. It's part of this.
It's continues to be an opportunity in India. Why number 1? Because digitally speaking the country infrastructure it's pretty high.
Henrique Braun: And we also invested behind it with a lot of focus on not only engaging with the consumer through data tech and AI, but also from a customer point of view, developing a platform that we call Coke Buddy, which is a platform that connects the bottler to the customers through a digital platform that has been growing from day one. We're still at one-fourth of the entire outlet base that we can reach in India. But we think that we're already deploying digital ordering, agentic AI to determine the next best SKU. And the next phase of that growth will be an end-to-end digital platform that will connect not only the consumer, the customers, but the experiences to translate that engagement into transactions. So India, for those reasons, is a market that, on that space, it's going to continue to be ahead of the pack as well.
Henrique Braun: And we also invested behind it with a lot of focus on not only engaging with the consumer through data tech and AI, but also from a customer point of view, developing a platform that we call Coke Buddy, which is a platform that connects the bottler to the customers through a digital platform that has been growing from day one. We're still at one-fourth of the entire outlet base that we can reach in India. But we think that we're already deploying digital ordering, agentic AI to determine the next best SKU. And the next phase of that growth will be an end-to-end digital platform that will connect not only the consumer, the customers, but the experiences to translate that engagement into transactions. So India, for those reasons, is a market that, on that space, it's going to continue to be ahead of the pack as well.
Henrique Braun: And we also invested behind it with a lot of focus on not only engaging with the consumer through data tech and AI, but also from a customer point of view, developing a platform that we call Coke Buddy, which is a platform that connects the bottler to the customers through a digital platform that has been growing from day one. We're still at one-fourth of the entire outlet base that we can reach in India. But we think that we're already deploying digital ordering, agentic AI to determine the next best SKU. And the next phase of that growth will be an end-to-end digital platform that will connect not only the consumer, the customers, but the experiences to translate that engagement into transactions. So India, for those reasons, is a market that, on that space, it's going to continue to be ahead of the pack as well.
Henrique Braun: And we also invested behind it with a lot of focus on not only engaging with the consumer through data tech and AI, but also from a customer point of view, developing a platform that we call Coke Buddy, which is a platform that connects the bottler to the customers through a digital platform that has been growing from day one. We're still at one-fourth of the entire outlet base that we can reach in India. But we think that we're already deploying digital ordering, agentic AI to determine the next best SKU. And the next phase of that growth will be an end-to-end digital platform that will connect not only the consumer, the customers, but the experiences to translate that engagement into transactions. So India, for those reasons, is a market that, on that space, it's going to continue to be ahead of the pack as well.
Uh, as well as being an acceleration across. Uh, you know, the whole India in the last few years, and we also uh invested behind it with a lot of focus on not only engaging with the consumer through data Tech and AI.
But also, from a customer point of view, developing a platform that we call Coke Buddy.
Which is a platform that connects the bottler to the, uh, to the, uh, customers through a digital platform that has been growing from day 1. We still that, you know, 1/4 of the entire Outlet space that we can reach in India, but we think that we already deploying digital ordering. Uh, um, AI a genetic AI to determine the next best SKU, and the next phase of that growth will be an end to end. Um, digital platform that will connect the only the consumer the customers, but the experiences to translate that engagement into transactions. So India for those reasons is the market that on that space, it's going to continue to be ahead of the pack as well.
James Quincey: Great. Thanks very much, everyone. To summarize, we're well positioned, I think, to achieve our objectives both in 2026 and the long term. It's a great foundation that's been set. As we've talked, this is the time for a seamless leadership transition. And I have every confidence Henrique is the best person to help lead the Coca-Cola Company, the team, and the system on our next chapter of growth. Thank you very much for your trust, your investment in the company, and for joining us this morning.
James Quincey: Great. Thanks very much, everyone. To summarize, we're well positioned, I think, to achieve our objectives both in 2026 and the long term. It's a great foundation that's been set. As we've talked, this is the time for a seamless leadership transition. And I have every confidence Henrique is the best person to help lead the Coca-Cola Company, the team, and the system on our next chapter of growth. Thank you very much for your trust, your investment in the company, and for joining us this morning.
James Quincey: Great. Thanks very much, everyone. To summarize, we're well positioned, I think, to achieve our objectives both in 2026 and the long term. It's a great foundation that's been set. As we've talked, this is the time for a seamless leadership transition. And I have every confidence Henrique is the best person to help lead the Coca-Cola Company, the team, and the system on our next chapter of growth. Thank you very much for your trust, your investment in the company, and for joining us this morning.
James Quincey: Great. Thanks very much, everyone. To summarize, we're well positioned, I think, to achieve our objectives both in 2026 and the long term. It's a great foundation that's been set. As we've talked, this is the time for a seamless leadership transition. And I have every confidence Henrique is the best person to help lead the Coca-Cola Company, the team, and the system on our next chapter of growth. Thank you very much for your trust, your investment in the company, and for joining us this morning.
Henrique Braun: Thank you, James.
Henrique Braun: Thank you, James.
Henrique Braun: Thank you, James.
Henrique Braun: Thank you, James.
James Quincey: Yes.
James Quincey: Yes.
James Quincey: Yes.
James Quincey: Yes.
Alright, thanks very much, everyone. Um, to summarize, we're well positioned, I think, to achieve our objectives, both in 2026 and the long term. Uh, it's a great foundation that's been set. Uh, as we've talked, this is the time for a seamless leadership transition, and I have every confidence Enrique is the best person to help lead the Coca-Cola Company, the team, and the system on our next chapter of growth. Thank you very much for your trust, your investment in the company, and for joining us this morning. Thank you, James. Yes.
Operator: Ladies and gentlemen, this concludes our conference call. Thank you for participating. You may now disconnect.
Operator: Ladies and gentlemen, this concludes our conference call. Thank you for participating. You may now disconnect.
Operator: Ladies and gentlemen, this concludes our conference call. Thank you for participating. You may now disconnect.
Operator: Ladies and gentlemen, this concludes our conference call. Thank you for participating. You may now disconnect.
Ladies and gentlemen, this concludes our, our conference call, thank you for participating you may now. Disconnect
