ATLANTA — Unit case volume, led by Coca-Cola Zero Sugar, increased 2% in the fiscal year ended Dec. 31, 2023, a year in which net income and revenues rose as well.

Unit case volume in sparkling soft drinks increased 2%.

“Coca-Cola Zero Sugar is an ongoing example of how superior taste drives demand, with volume that grew 5% in 2023, leading to continued volume and value share gains,” said James Robert B. Quincey, chief executive officer, in a Feb. 13 earnings call. “We're applying learnings from this multiyear success and driving taste superiority elsewhere in our sparkling portfolio. In 2023, we launched Sprite and Fanta reformulations in 25 markets, delivering mid-single-digit volume growth in those markets and driving overall sparkling flavors value share gains.”

Other volume increases were 2% in juice, value-added dairy and plant-based beverages and 1% for water, sports, coffee and tea. Coffee volume increased 3%, and water was up 2%. Sports drinks were even as a decline in BodyArmor offset Powerade growth in Latin America. Tea volume declined 1%.

In North America, unit case volume decreased 1%.

“In North America, we're evolving packaging options across more distribution points to drive affordability and premiumization,” Quincey said. “On the affordability side, our 1.25-liter PET bottles are now available in 80% of supermarkets, and our 16-ounce can distribution increased by 14 points in convenience stores during 2023.

“We're also focused on premiumization through the expansion of our mini-can offerings. During the quarter, we launched 15-pack mini cans in grocery and club channels.”

Atlanta-based Coca-Cola had net income of $10.71 billion, equal to $2.48 per share on the common stock, which marked a 12% increase from $9.54 billion, or $2.20 per share, in the previous fiscal year. Net revenues increased 6% to $45.75 billion from $43 billion. Organic revenues increased 12%, driven by 10% growth in price/mix and 2% growth in concentrate sales.

Inflationary pressures are moderating or stabilizing across most of Coca-Cola’s global markets, Quincey said.

“To keep consumers in our franchise, we are leveraging our revenue growth management capabilities to tailor our offerings and price-pack architecture to meet consumers' evolving needs,” he said. “In North America and Europe, while inflation is moderating, the cumulative impact of inflation is pressuring certain consumer segments who are seeking value. Throughout 2023, we increased our affordability offerings and won volume and value share in both regions.”

In the fourth quarter companywide, net income slipped 3% to $1.97 billion, or 46¢ per share, from $2.03 billion, or 47¢ per share, in the same time of the previous year. Net revenues increased 7% to $10.85 billion from $10.13 billion. Organic revenues were up 12%, driven by 9% growth in price/mix and 3% growth in concentrate sales.

In the current fiscal year, Coca-Cola expects organic revenue growth of 6% to 7% and growth of 8% to 10% in currency-neutral EPS. Currency headwinds of 2% to 3% are expected as is a headwind of 4% to 5% from acquisitions, divestitures and structural changes.

“We anticipate hyperinflationary pricing will continue to play a role in 2024 but will moderate throughout the year,” said John Murphy, president and chief financial officer. “We continue to make significant progress toward refranchising company-owned bottling operations. Bottle refranchising is expected to be a 4- to 5-point headwind to comparable net revenues and a 2-point headwind to comparable earnings per share but will have a positive impact on both our margins and the return profile of our business.”

Quincey added, “In aggregate, we would expect to get more from price relative to volume for the US business. So, the balance that I talk about between price and volume applies on a global basis. Clearly, that's then made up of geographic portfolio mix.