The return of tourism to Spain triggers sales of Coca-Cola. With the end of mobility restrictions and the full reopening of bars and restaurants, the European bottler of the popular soft drink. Coca-Cola Europacific Partners (CCEP) recorded a 28.5% increase in the Iberian Peninsula – the region that includes Spain, Portugal and Andorra -. It is the area of the Old Continent that is growing the most and reaching revenues of 1,371 million euros.
The company chaired by the Catalan Sol Daurella presented this Thursday the results of the first half of 2022, which ended with a net profit of 675 million euros and a turnover of 8.280 million. Profits tripled the 246 million obtained over the comparable period and invoicing increased by 40% against 5,918 million.
The company is celebrating progress across Europe and much of the growth is being seen through the acquisition of Amatil – the Coca-Cola bottler in the Pacific – company in May 2021, which has consolidated its results throughout the semester unlike last year, when he had only calculated over two months.
Within the Old Continent, the Iberian market is the one that is developing the most. It is also the one that has fallen the most during 2020 and a good part of 2021, when the restrictions on tourism were still in force and for weeks, the closure of bars and restaurants was imposed. Between January and June, sales increased by 28.5% from 1,069 million to 1,371 million euros, mainly thanks to the recovery in Spain.
The Iberian Peninsula is again the second most important market for Coca-Cola Europacific Partners, just behind Great Britain
Iberia overtook Germany to again be the second most important market for the listed company, just behind Britain. In terms of growth, only the Netherlands (+23.5%) and Great Britain itself (+22.5%) come close. According to the CCEP itself, Coca-Cola Zero and energy drink Monster are the best performers.
“The growth in volumes reflects the strong recovery of the hotel industry, particularly in Spain, supported by the return of tourism and a favorable climate”, rejoices the organization. In addition, the firm assures that sales in supermarkets are improving after having regretted for months the increase in VAT on sugary drinks from 10% to 21% on the proposal of the Ministry of Consumer Affairs.
The tribute, which has had a major impact on soft drinks such as Coca-Cola or Fanta, aims to raise 300 million euros a year and only applies to sales in supermarkets so as not to touch the hotel.
Coca-Cola accounts for 58% of sales
According to the document sent to the National Securities Market Commission (CNMV), Coca-Cola is still resisting despite new trends in the food sector, which are theoretically healthier. It accounts for 58% of the bottling company’s sales. Within the category, Coca-Cola Zero is gaining more and more ground and is already selling 24% more than in 2019.
The original soft drink was up 12.5% year-on-year as the hospitality industry recovered. Up to 20% increased Fanta and 16.5% advanced Sprite. Water sales increased by 17.5%, although they remain 24.5% lower than they were before the pandemic. Energy drinks are also up 17.5% thanks to Monster.