THE FIZZ went out of Coca-Cola yesterday after it was forced to cut full-year earning forecasts on the back of lower quarterly profits.
Shares fell nearly six per cent to their lowest level since the financial crisis after it trimmed forecasts for the rest of this year.
The soft drinks maker, which is aiming to overcome sluggish growth by slashing costs, said quarterly net income declined to $2.1bn (£1.3bn) from $2.4bn in the same period last year.
Changing consumer tastes, with a move away from sugary drinks, and currency weaknesses have put a dampener on Coke’s sales.
Sales fell five per cent in Europe and one per cent in the US, but the group posted a small rise in Latin America and Asia of two per cent.
“While we have begun to see early signs of progress, we recognise that we need to increase the scope and pace of change as we continue to face a challenging macroeconomic environment,” Coca-Cola boss Muhtar Kent said.
The company promised to ramp up its cost saving drive and save $3bn a year by 2019, up from $1bn.