Coca-Cola(US:KO) Xin Lang Cai Jing·2026-02-15 09:30Core Viewpoint - Coca-Cola is facing significant challenges with stagnant sales and declining profits, particularly in the Asia-Pacific region, indicating a shift in consumer preferences and market dynamics [2][3][4]. Financial Performance - In 2025, Coca-Cola reported a revenue of $47.941 billion, a 2% increase, and a net profit of $13.137 billion, a 23% increase, despite global single-serve sales being flat for the first time in a decade [3][16]. - The Asia-Pacific region, including China, saw a revenue of $1.139 billion in Q4 2025, down 7% year-over-year, with operating profit dropping 36% [4][19]. Market Dynamics - The stagnation in sales is attributed to declines in key markets such as the U.S., Mexico, and Thailand, which offset growth in regions like Central Asia and North Africa [3][16]. - Local competitors like Eastroc Super Drink, Nongfu Spring, and Yuanqi Forest are gaining market share, with Eastroc projecting a revenue increase of 31% to 33% for 2025 [20]. Consumer Sentiment - There is a growing consumer backlash regarding the taste of Coca-Cola, with many complaints about changes in flavor and sweetness due to cost-cutting measures [8][21]. - The company's strategy of frequent price increases has not resonated well with consumers, leading to reduced purchase impulses [10][23]. Strategic Challenges - Coca-Cola's reliance on price increases rather than volume growth is becoming unsustainable, as consumers are increasingly resistant to higher prices [11][23]. - The company is facing a critical transition with a change in leadership, as current CEO James Quincey will be succeeded by COO Brian Smith in March 2026, raising questions about future strategies in the Chinese market [11][25].