Despite rising inflation and a trend of consumers trading down to cheaper alternatives, certain premium brands continue to maintain their pricing power. According to a McKinsey report, 79% of shoppers are opting for more affordable options, but companies like Costco Wholesale, Coca-Cola, On Holding, Starbucks, and Procter & Gamble are defying this trend by maintaining or even raising prices without losing demand.
Costco Wholesale, known for its discount model, has successfully raised its membership fees in 2025 and seen strong renewal rates. In the 2026 fiscal fourth quarter, its total sales increased by 11.2% year over year, driven by a 9.4% increase in comparable sales. Coca-Cola, a classic example of a company with strong pricing power, reported a 6% increase in sales and a 30% rise in earnings per share in the second quarter, thanks to higher pricing and effective marketing strategies.
On Holding, a newer player in the athleisure and athletic footwear market, has cultivated a loyal following among affluent consumers. Its revenue increased by 21.6% year over year in the second quarter, with a significant 34.3% growth in direct-to-consumer channels. Starbucks, under the leadership of CEO Brian Niccol, has cut specials and leaned into its premium image, resulting in a 7.9% increase in global comparable sales and an 86% growth in earnings per share in the 2026 fiscal third quarter.
Procter & Gamble, known for its premium beauty and hygiene brands, has seen sales increases in three of its five categories in the 2026 fiscal fourth quarter. The company has maintained its premium positioning and generated higher consumer loyalty. These companies exemplify the importance of pricing power in maintaining long-term growth and representing great investing opportunities.