Coca-Cola CEO: We are holding prices for now despite the trade war

Coca-Cola (KO) CEO James Quincey is holding steadfast connected prices adjacent arsenic the Trump administration's commercialized warfare drives up costs similar aluminum cans and orangish juice.

"We're not doing it [raising prices] retired of cycle. Obviously prices went up due to the fact that of a full acceptable of mean things — past year's ostentation — that's already happened. But we're sticking to our existent pricing program because, you know, immoderate things are much costly and immoderate things are little expensive. And it each goes into the bundle," Quincey told Yahoo Finance (video above).

Shares of the beverage elephantine roseate astir 1% successful trading connected Tuesday arsenic it bushed connected archetypal 4th net and didn't contented a informing with its full-year guidance. The institution said successful a connection that it expects the commercialized war's interaction to beryllium "manageable" this year.

Read much astir Coca-Cola's banal moves and today's marketplace action.

That isn't to accidental consumers aren't showing signs of being nether unit arsenic ample companies statesman to rise prices to compensate for their higher costs of doing business.

In Coke's North America business, for example, portion lawsuit volumes fell 3% arsenic it raised prices by 8%. It was the second-largest terms summation among Coke's divisions, down a 16% hike successful Latin America.

Quincey explained to Yahoo Finance, "If you look astatine the US business, the weakness successful measurement successful Q1 was concentrated successful what we telephone aboriginal depletion packaging, which is overmuch much predominant successful supermarkets oregon successful benignant of autarkic commercialized outlets, alternatively than either convenience oregon the benignant of away-from-home quick-serve restaurants and each the distant from location channels. So that's wherever the weakness was focused, which I deliberation is partially an denotation of immoderate of the affordability unit for the lower-income user and immoderate of the geopolitical reaction."

• Net sales: -2% twelvemonth implicit twelvemonth to $11.2 cardinal vs. estimates for $11.14 billion

• Organic income growth: +6% twelvemonth implicit twelvemonth vs. estimates for +5.2%

• Core EPS: +1% twelvemonth implicit twelvemonth to $0.73 vs. estimates for $0.72

• Key comment: Said tariff interaction is "manageable"

• Organic income growth: +5 to +6% vs. estimates for +5.63% (previous guidance: +5% to +6%)

• Core EPS: +2% to +3% to $2.96 vs. estimates for $2.96 (previous guidance: +2% to +3%/$2.94 to $2.97)