A：The main topics discussed during the conference call include the company's response to the dynamic external environment, plans for growth, segment performance, and the marketing and innovation strategies. CEO James Quincey, COO Enrique Braun, and CFO John Murphy also gave their insights on the call.

A：Key achievements mentioned in the third quarter include volume growth, continued organic revenue growth at the high end of the long-term growth model, ongoing efficiency and effectiveness initiatives that drove comparable operating margin expansion, and a 6% comparable earnings per share growth despite 6% currency headwinds. The company also gained overall value share and maintained or gained value share across each geographic segment.

A：The company faces a complex operating landscape with some consumer segments under pressure due to varying factors like unseasonable weather and the cumulative impact of inflationary pressures, uncertain trade dynamics, and a changing geopolitical environment. Despite these challenges, the company has delivered volume growth and maintained its position in the industry.

A：The company is focusing on capitalizing on the strength of its portfolio and improving execution across all aspects of its strategic growth flywheel. They are leveraging their portfolio power with their portfolio of billion-dollar brands and are investing in marketing transformation that connects deeply with consumers through digital engagement and cultural relevance. They are also prioritizing innovation and executing in the market.

A：Recently, the company completed two significant steps in its refranchising journey. In July, they sold a significant stake in their company-owned Indian bottler to the Jubilant Bartier Group, and Coca-Cola Hellenic announced its intention to acquire a controlling interest in Coca-Cola Beverages Africa. These moves are expected to unlock growth opportunities in India and Africa.

A：The global refranchising strategy has been a key focus area for the company, and recent milestones such as selling a stake in the company-owned Indian bottler and the planned acquisition in Coca-Cola Beverages Africa are expected to further focus the company on brand building and innovation while also allowing for integrated execution with bottling partners.

A：In North America, the company delivered strong results with flat polymer that improved sequentially. They gained value share and had strong revenue and profit growth, continuing their investment behind the brand. In Latin America, they gained value share and grew organic revenue and comparable currency-neutral operating income. In Europe, volume was flat, with the segment focusing on executing plans and driving profitable growth. The company's global franchise model is a strategic differentiator, and they are confident in their ability to navigate the current environment and deliver on their guidance.

A：The company's balance sheet remains strong with a net debt leverage of 1.8 times EBITDA, below the targeted range of 2 to 2.5 times. The company is confident in its long-term free cash flow generation and has ample balance sheet capacity to prioritize reinvesting in its business and returning capital to share owners.

A：The company is dealing with a portion of its case related to royalties from Brazilian affiliates that were blocked under Brazilian law. Recent decisions by the 3M appellate court are supportive of their position. They are continuing to vigorously defend their overall position and are encouraged about their chances of prevailing on appeal.

A：The company continues to expect organic revenue growth of 3 to 5% and comparable currency-neutral earnings per share growth of approximately 3%. They anticipate a 1 to 2 point currency headwind to comparable net revenues and an approximate five point currency headwind to comparable earnings per share for full year 2025. The underlying effective tax rate for 2025 is now expected to be 20.7%.

A：For the fourth quarter of 2025, the company will face a more difficult volume comparison in key markets, a one additional day in the quarter, and the impact of calendar shifts on quarterly cadence with more first quarter days and fewer fourth quarter days. Inflation is expected to moderate, and they anticipate pricing to normalize, leaning into affordability and premiumization depending on market demands. They also foresee volatility and trade dynamics impacting results, while focusing on unlocking cost efficiencies for portfolio growth and long-term value creation.

A：In September, there was a sequential improvement in underlying category trends, which was attributed to a doubling down by the system on increased marketing, focus, and innovation in affordability and revenue management, as well as improved execution. The environment did not change markedly, and the company is expected to continue focusing on driving results and volume growth into the fourth quarter.

A：The company plans to invest for growth in the fourth quarter, with a focus on executing good marketing and innovation programs through Halloween and Christmas. The environment is expected to stay consistent, requiring the company to focus on driving their own results and trying to achieve volume growth despite a steep comparison from last year. They expect inflation and pricing to moderate back to a more normal range.

A：The company's long-term growth model calls for 4 to 6% top-line growth with a focus on balance, implying 200 to 300 basis points on volume and 100 to 200 basis points on price. This is what they are aiming for to stay at the top end of their revenue growth algorithm, with the goal of growing volume to expand their consumer franchise and earn the right to pricing.

A：The company observes a big overall shift towards increased localness in competition, with a more dynamic environment in regional competitors due to the recent divergence in global economic and political conditions over the last five years. They are responding by driving more resources to the front line to have different local responses, emphasizing the need to be closer to the consumer and using the strength of their global system to respond to different dynamics in different parts of the world.

A：In Latin America, the consumer environment is tied to the US economy and policy changes. Recent microeconomic issues and a pivot in strategy to address these in Mexico have shown some bright spots, but it's too early to declare Mexico back on a growth trajectory. The company has seen more momentum in the rest of Latin America. The impact on forward performance and strategy changes will depend on resolving the microeconomic issues in Mexico.

A：The recent transactions with the Bia group in India and Hellenic relative to Coca-Cola Beverages Africa are the last two large pieces setting the path to completing the refranchising strategy. This strategy involves finding the right partners to drive investment in capabilities, which has proven to be successful. After these transactions, only a handful of smaller countries like Malaysia and Singapore will remain unrefranchised. The margin targets have been closely related to the progress of refranchising, and with the latest refranchising and ongoing margin expansion efforts, the company expects to continue seeing uplift in the overall margin profile.

A：Coca-Cola's refranchising strategy is nearly complete, with only a few smaller countries yet to be refranchised. The strategy has been successful, resulting in a more capable system set up to drive growth well into the future. The company now has a robust infrastructure in place that will allow it to focus on further enhancing growth and profitability.

A：The coffee category is described as super attractive, large, profitable, growing, and relatively unconsolidated. The coffee business has returned to volume growth and is doing well, with investments in store footprint, particularly in the UK, and continuing to increase the presence of express machines in other countries. The non-retail side of the coffee business did not provide the expected growth for the Coke system, leading to a reevaluation of future plans in coffee. The 'lights and zeros' segment, which includes Diet Coke and Coke Zero Sugar, has an opportunity to become a larger part of the soft drink volume, contributing to the growth of the sparkling category worldwide.

A：Diet Coke has recently experienced a stabilization and even growth in recent years, contrary to a decade-long decline. There has been a period of renewed investment in marketing and innovation for Diet Coke, alongside sustained growth in Coke Zero Sugar. The strategy has always been to give each brand its own justice, and the recent responsiveness to investment in marketing and innovation for Diet Coke has contributed to its resurgence.

A：Coca-Cola views the beverage industry as a growth industry with structural reasons such as economic growth and urbanization driving its creation. The industry is expected to continue growing, and as the leader in the industry, Coca-Cola aims to win market share. The company plans to maintain top line growth by investing in areas like marketing, innovation, and operational efficiency. Future changes include ongoing productivity enhancements, the introduction of AI and machine learning technology, and some restructuring of the organization in 2026 to drive top line revenue growth. This will involve examining and transforming aspects of the business to ensure continuous growth and competitiveness.

A：The management encourages looking at multi-quarter trends in the Asia Pacific segment because the businesses in the region are on different timelines, and it is easier to manage when they are looked at together due to their disparate nature.

A：The lower priced countries in the Asia Pacific segment, such as India and ASEAN, underperformed in volume terms due to monsoon, economic pressures, and market challenges. As a result, the weighting effect of these lower-priced countries' lower growth meant that the overall pricing in the segment appeared to have increased significantly, which is the inverse of the typical pattern where emerging market growth shows flat or declining prices in the region.

A：The expected long-term impact of GLP-1 drugs on beverage consumption, according to the data and insights shared, is a shift towards less full sugar soft drinks and more consumption of diet soft drinks, coffee, and protein drinks, suggesting a change in consumer dietary habits.

A：The capacity expansion at Fairlife is on track with the big factory in upstate New York, and it is expected to begin producing on time and ramp up throughout the year. There will be a more unconstrained ability to satisfy consumer demand for Fairlife products over the course of the year. The competitive environment is expected to grow with new competition and innovation, aiming to drive the Fairlife and core power brands, supported by new product introductions and increasing capacity.

A：The expectation is that the New York factory, when fully capacity, will provide about 30% more capacity for Fairlife, enabling significant growth into 2026 and allowing them to stop having the product on allocation to retail partners. This growth is expected to help move out of the bottleneck currently being experienced. Regarding international expansion, the company is looking at the success with Fairlife and Santa Clara in Mexico and leveraging the platform to make it work with other brands and product ideas around the world.

A：The company is working with the bottling system to accommodate and adapt to the sugar tax increase in Mexico, which will take effect at the beginning of next year. The company expects some impact in the early days but plans to use strategic adaptations like doubling down on marketing and RGM technology to come through the challenge stronger. The company is fully prepared to implement the latest adaptations of the strategy starting this year.

A：Positive volume growth in North America has been attributed to better execution and improved pricing mix, with 2 points coming from premium brands like Topo Chico Smart Water, Fair Life, and new packaging architecture, such as mini cans.

A：The company remains focused on its actions, marketing, innovation, and execution rather than market-wide trends. While acknowledging tougher volume comparisons in the fourth quarter, the company is not anticipating a decline and aims to continue rebuilding momentum.

A：Based on current knowledge, there is a slight tailwind expected for 2026 which could result in a slight benefit to margins. The company has experienced timing benefits in Q3 and improved productivity in marketing areas due to digitization work, which is not expected to be consistent every year. In 2026, these factors should contribute to a tailwind, and the objective is to maintain margin expansion in line with the company's long-term strategy.

A：The potential impact of competitors' actions on The Coca-Cola Company includes considerations like refranchising, strategic focus, and scope of brand support. The company aims to avoid complacency, remains focused on market leadership, and plans to transform and invest further for growth, especially in the U.S. and globally.

A：The European business has largely been resilient, although some areas experienced strong weather. However, there is pressure on the lower end of the consumer demographic, similar to the U.S., with value-seeking behavior across channels and packaging mix. Despite challenges, the European business has performed okay and the company plans to continue focusing on its strategies.

A：In newly franchised territories, the company is taking a deliberate approach to choosing new ownership groups that possess the skill, will, and capital to drive the franchises forward. The company aims to replicate the long-lasting, enduring relationships established in Latin America with bottling assets around the world, including in Africa, India, the Philippines, Indonesia, and other parts of Asia.