Monday, 22 July 2013

Coke is blaming weather for drop in earnings. Yea blame it on the rain.

Maybe Coca-Cola needs to hire a meteorologist. Or if it already has, perhaps it’s time to expand the drink makers weather department.

The soft-drink giant attributed a disappointing earnings report to crummy weather, along with shaky economic conditions in Europe. All told, Coca-Cola said weather weighed on results in China, Europe and the U.S—three of its biggest markets. Monsoons hurt sales in India, company officials said, and rain took the blame for sales of fewer drinks to Americans. It follows that someone might be more inclined to buy an icy soda on a hot day and less interested on a chilly afternoon—or when faced by rain and even floodwaters, as was the case in Germany in the spring. Coca-Cola Chief Executive Officer Muhtar Kent cited “unusually poor weather conditions” during a conference call on Tuesday, adding: “This is more of an anomaly, we should not see this as a trend or a systemic issue.”

Is coke really serious? This year recorded the third-warmest May on record according to U.S. weather data. April was fairly.
Maybe they should take a very good look at their pricing mechanism. That should be a better reason than the weather. For real.

No comments:

Post a Comment