The strategy: Incoming CEO Henrique Braun wants to push Coca-Cola to speed up innovation at a more local level, pushing the system to get closer to consumers and move faster to market so the company can “better anticipate the next growth opportunity in beverages and shape what comes next.”
Braun, the current COO who will replace James Quincey at the end of March, said Coca-Cola’s innovation efforts “are not where they need to be,” even as the company balances building on what’s working with becoming more effective and efficient across its complex bottling network.
The examples: The company pointed to recent wins, including Sprite Chill—the cherry-lime soda that uses proprietary cooling agents to create a tingling sensation on the tongue and throat—and Coca-Cola Holiday Creamy Vanilla, a seasonal launch that pairs the classic Coke taste with a creamy vanilla finish. Both products delivered strong performance in Q4, highlighting the potential upside from faster, more targeted innovation.
Nearly 50% of US adults have increased their focus on wellness in recent years, per a KPMG survey. With health and wellness the only category where plans to increase spending outweigh plans to cut back in 2026—per a December CivicScience consumer survey—Coca-Cola is leaning into wellness-coded growth areas, including zero-sugar soft drinks and other beverages, as well as fairlife’s ultra-filtered milk and protein shakes.
Zero-sugar continues to be a bright spot: Coca-Cola Zero Sugar grew 14% in 2025, while Diet Coke rose 2% in Q4 and was flat for the year, as consumers increasingly shift away from full-calorie sodas.
Looking ahead: Coca-Cola expects organic sales growth of 4% to 5% in 2026, slightly below analysts’ expectations of about 5.01% to 5.3%. The conservative outlook underscores the challenges the incoming CEO faces, including:
- Softer soda demand in North America and parts of Asia
- Growing competition from regional brands
- Regulatory headwinds such as higher taxes on sugary drinks in Mexico and new US state-level restrictions on the use of SNAP funds to purchase soda
Quincey described the guidance as “realistic and prudent,” reflecting a mix of momentum and challenges across markets. Coca-Cola is working to boost volume growth in India, China, and parts of Europe, even as price increases—implemented to offset higher input costs—have pressured inflation-weary consumers. The company is also testing more affordable options, including mini 7.5-ounce cans priced under $2 in US convenience stores.
Implications for brands and marketers: With Coca-Cola facing uneven momentum across regions, marketers will need more nuanced, locally relevant narratives and offerings. That localized approach, across both product development and marketing, will be critical to driving success in an increasingly competitive landscape.