By coinnews 
00:00 Brian Sozzi
Welcome back to Yahoo! Finance. Coca-Cola shares popping after topping expectations for its first quarter earnings. Let’s get right into it with the CEO of Coca-Cola, James Quincey. James, always nice to get some time with you. Welcome back to Yahoo! Finance. Uh, now, I’ve just got off your earnings call. You’re talking about how volume was impacted by by consumer sentiment weakening. Volumes in North America down 3%. You know, as you zoom out and you study the health of the US consumer, are they experiencing recessionary conditions given everything going around the world as pertains to the trade war?
00:47 James Quincey
Um, look, I think we got good global volume growth, 2% globally, and yes, there was a there was a decline in the US. I think the the as it relates to decline US in Q1, it was much more a set of uh kind of factors specific to Q1. There was some very cold weather in January. Uh Easter is much later this year than previous years, which is a big selling period uh for us. And there was some consumer pull back uh more more specifically in some of the Hispanic uh areas of the country. Um I I wouldn’t call it recessionary at all. I think it was really much more idiosyncratic in terms of a few factors. Um because actually even though sentiments been impacted as we come into April, you know, consumers are still out there spending. So I think it’s more a continuation of certain consumer segments under pressure because of inflation coming out of last year, uh that we need to deliver affordability options and then some specific reasons in Q1. We we know what we need to fix. Uh we know what we need to focus on going forward and and get back on our growth plan. I think as you say that given the current dynamics Q2 and Q3 could be a little choppy. Uh but we know what we need to do as it relates to the US within the global portfolio.
02:51 Brian Sozzi
James, within that consumer weakness in North America, is it more pertaining to the shopper that goes to a supermarket to buy a couple bottles of soda or is it more confined to the convenience store channel, which, in my view, has always been viewed as a leading economic indicator?
03:19 James Quincey
Look, if you look at the US business, the weakness in volume in Q1 was concentrated in what we call future consumption packaging, which is much more predominantly uh in in in supermarkets or in kind of independent trade uh outlets rather than either convenience or uh the kind of away from home QSRs and all the away from home channels. So that’s where the weakness was focused, which I think is partly an indication of some of the affordability pressure uh for the lower income consumers and some of the geopolitical reaction. Um so that’s why I think that with what our strategy that we’re putting in place, we can certainly begin to address that weakness uh while still maintaining a good growth in the rest of the portfolio in the rest of the channels.
04:38 Brian Sozzi
James, you’re the second CEO of a large packaged goods company. Call out weakness in the consumer, in the Hispanic consumer to me. The other one was two weeks ago when I talked to Constellation Brands CEO Bill Newlands. Of course, they make Modelo and Corona beer. He thinks it’s because of the administration’s uh immigration policies and other economic concerns. Would you agree with that assessment? Why is that Hispanic consumer under a lot of pressure?
05:16 James Quincey
Um I I I’m not sure I would characterize it that way. Look, I think that the Hispanic, some of the Hispanic consumers in this in particularly in some of the southern states in the US, and actually frankly in some of the northern states uh in Mexico. There’s a huge high degree of economic integration of the supply chain uh between those parts uh uh uh uh uh you know, the Mexico particularly Northern Mexico uh and the US. And I think some of the the uncertainty that’s about exactly where’s this going, caused them to pull back a little in terms of spending. Um I don’t see that as a permanent feature. I think this will be worked through. Uh and it’s to some extent the newness of the news. Um so we believe we focus on reinforcing that we got yes, we got global brands, but those brands are made local in every country around the world. And the operations are local. The factories, the employees are local. Um and backed up with affordability and execution, that we will be able to uh see a kind of a normalized our business with with with all our consumers, including some of the Hispanic ones in those areas.