Coca-Cola Takes on China's Picky Consumer with Aggressive Expansion

Coca-Cola's second quarter earnings report showed growth in volume and revenue, but operating income fell in Asia Pacific due to China's cautious consumer sentiment.

CEO Henrique Braun stated that 'sentiment remains cautious and spending continues to be selective' in China, where shoppers are weighing value more than ever.

Coca-Cola is expanding its consumer base in all socioeconomic segments in the region, investing money to reach lower-income buyers who are more price sensitive.

The company's comparable operating income in Asia Pacific declined due to investments and affordability initiatives, but management believes it will pay off in the long term.