Poland is one of the most expensive places to buy Coca-Cola in Europe

Coca-Cola and PepsiCo delivered great global sales figures last week. The recovery from the pandemic favors the sale of carbonated beverages. In Poland, sales are worse due to the increase in the prices of beverages after the introduction of the sugar tax. A 1,5 liter bottle of Coca-Cola costs in Poland approx PLN 7while w Germany or Spain you can buy it for approx PLN 5.

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.

Coca-Cola and Pepsi in Poland

From the beginning of the year, the sugar tax that caused this has been in force in Poland increase in prices of carbonated beverages by 36%, which in turn caused a decrease in sales by 20 percent. y / y (CMR data for the first half of 2021) - and this despite the heat wave that hit Poland in June. Usually, such phenomena have a very strong impact on sales increases. The tax significantly increased the prices of Coca-Cola products (with a 40% share in the Polish carbonated beverages market) and Pepsi (with 20%). For example, a 1,5-liter bottle of Coca-Cola costs around PLN 7 in a supermarket in Poland (the tax amount for this bottle is around PLN 1,50). Meanwhile, in Germany or Spain, the same bottle can be bought for no more than the equivalent of PLN 5, which is as much as it cost in Poland before the introduction of the tax. Importantly, the sugar tax also applies to beverages sweetened with sweeteners, so it is actually a tax on carbonated beverages, and not strictly a sugar tax, which occurs in other countries.

Coca-Cola and Pepsi globally

In Poland, sales of beverages are falling, but in the world it is rebounding after the decline caused by the pandemic. Coca-Cola and its eternal rival Pepsi presented great global results for the second quarter. Coca-Cola posted second-quarter revenues of $ 10,1 billion, an increase of 42 percent, beating analysts' expectations by $ 800 million. EPS (Earnings per share) increased by 48%. to $ 0,61, and the company's organic revenue grew 38 percent. Coca-Cola's share price increase has been lower than that this year S & P500 indexgood results can attract investors' attention again. Progressive lifestyle changes, as well as the pandemic, have contributed to the decline in the company's revenues in recent years. In response, it started a restructuring process aimed at focusing on proven drinks such as Coca-Cola and healthier alternatives such as water, tea and coffee. The company strongly promotes the Coca-Cola Zero Sugar drink without sugar all over the world, including Poland.

PepsiCo also exceeded analysts' expectations. The company's revenues in the second quarter increased by 20,5%. y / y to USD 19,22 billion. The EPS was $ 1,72, which is 19 cents above expectations. The company's sales of non-alcoholic beverages increased by 21 percent worldwide. The company expects further increases, but there are still risks associated with the next wave of the pandemic. It may take place during the holidays, i.e. in the period of the highest sales of carbonated drinks.