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Portfolio changes, economic pressure, and financial performance explain the new strategy based on smaller, more affordable packaging
Coca-Cola revised its global strategy after identifying a decline in soda consumption and increased pressure on family budgets, especially in the United States. The company decided to prioritize smaller packaging as a way to preserve sales volume without resorting to aggressive discounts.
Henrique Braun, a Brazilian who took over as global CEO in March 2026, detailed the approach in an interview with The Wall Street Journal. The company opts to reduce the volume per unit instead of lowering prices, allowing consumers to pay less per purchase, even if taking a smaller quantity.
The strategy seeks to maintain consumption frequency in a high-inflation scenario. Reduced formats increase accessibility and help sustain the brand’s presence in consumers’ daily lives, even in the face of financial constraints.
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Strategy with smaller packaging gains scale
Mini cans and multipacks recorded significant growth in North America, according to the company itself. Smaller individual versions also gained space in convenience stores, where they serve as a more accessible entry alternative.
Size diversification strengthens the portfolio and caters to different consumption occasions. The introduction of smaller packaging expands the brand’s reach without directly compromising value perception.
Coca-Cola also launched a 1.25-liter bottle, aimed at home consumption. The format occupies an intermediate position between larger versions and individual packaging, balancing cost and volume.
Cans of 220 ml and 310 ml had already been strengthened in recent years, alongside the traditional 350 ml version. These formats are also available in Brazil, consolidating the strategy in different markets.
Financial results exceed projections
The company presented performance above expectations in the first quarter of 2026. Earnings per share reached US$ 0.91, representing an 18% growth compared to the same period last year.
After adjustments, profit stood at US$ 0.86, surpassing the projection of US$ 0.81, according to FactSet data. Revenue advanced 12%, reaching US$ 12.5 billion and exceeding Wall Street analysts’ estimates.
Growth was driven mainly by the sale of concentrates, the base used by partners in beverage production. This factor partially offset the slowdown in final consumption.
Economic scenario influences consumer behavior
Consumer confidence in the United States reached its lowest recorded level, according to the University of Michigan. The scenario reflects concerns about inflation, international conflicts, and a weakening labor market.
The reduction in purchasing power directly impacts beverage consumption, leading the company to adapt its strategy. Coca-Cola’s response seeks to align perceived price and offered volume with the new consumption profile.
Performance in Brazil sustains regional growth
The Brazilian operation is conducted by Coca-Cola FEMSA, responsible for production and distribution. The portfolio includes soft drinks such as Coca-Cola, Fanta, Sprite, and Schweppes, as well as Leão teas and Del Valle juices.
The company also operates with energy drinks, isotonic drinks, beers, and Crystal mineral water. This diversification expands the brand’s presence in different segments of the beverage market.
Sales volume in Brazil grew by 3.6%, totaling 306 million cases. Revenue reached approximately US$ 1.2 billion, with a 5% increase year-over-year.
The South America division recorded **18.8% growth in operating profit**, offsetting weakness observed in Mexico and contributing to the balance of global results.
Brazilian CEO’s trajectory strengthens global positioning
Henrique Braun took office after almost three decades with the company. He joined as a trainee in 1996 and gained experience in strategic markets, including China, Brazil, and Latin America.
In recent years, he held relevant global positions, such as Chief Operating Officer (COO), coordinating activities in different regions. His appointment reflects the company’s need to adapt to changes in consumer behavior.
Braun replaced James Quincey, who remains as chairman. The transition occurs at a time of strategic adjustments and increased competitiveness in the beverage sector.
The adoption of smaller packaging consolidates a direct response to economic pressures and new consumer preferences, redefining how Coca-Cola sustains growth in a more price-sensitive market — will this strategy be enough to maintain global leadership?
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