A：The key factors contributing to Coca-Cola's strong first half of the year include operating in a great industry with widely loved beverages, having an unmatched system strength with the dedication of Coca-Cola system partners around the world, and executing against priorities to enhance and extend the company's power and strength.

A：In the second quarter, the company delivered a strong performance with volume growth of 5%, organic revenue growth at the high end of a long-term growth algorithm, and expanded margins while investing in the business. Notable factors included the strength of the total beverage portfolio, the power of the global yet local system, and the ability to quickly adapt to changing consumer needs.

A：The global consumer environment is uneven, with the economy strong in some places but many consumers facing inflationary pressures, geopolitical uncertainty, and economic challenges. Consumers are re-evaluating their spending and preferences. In some markets like the U.S. and Europe, the consumer backdrop is stable, but many are still under pressure, while in China, sentiment remains cautious and spending is selective.

A：Coca-Cola's mission is to ensure its brands are valued, relevant, and worth choosing. In the second quarter, the company engaged consumers through its FIFA World Cup integrated marketing campaign, which brought consumers closer to the action and showed the power of the system at scale, driving business momentum across North America.

A：The total beverage portfolio grew volume 3% by leveraging the company's growth flywheel. There was strong volume growth for many brands, including trademark Coca-Cola, Fairlife, Powerade, and others. Mr. Pibb grew volume more than 20%, demonstrating innovation and relevance across states and drink occasions.

A：The company's three priorities for growth are becoming more consumer-centric, remaining constructively discontented, and placing digital at the core of every connection. These priorities are being executed, for example, by leveraging insights and innovation to build long-term capability as shown with the FIFA World Cup, by continuing to refine approaches to engage consumers effectively, and by integrating digital into every aspect of the customer experience.

A：Coca-Cola's volume grew by 5% for the quarter, driven by the FIFA World Cup activation, which is the strongest volume growth in 17 years excluding Covid recovery. Power rate also grew volume 8% globally during the quarter.

A：Coca-Cola is making its brands more relevant by redesigning products like Coca-Cola 0 0 for evening occasions, better positioning the brand for the current moment, and continuing to expand the reach of successful products like Fairlife across more markets.

A：Coca-Cola's priorities include placing great leaders in key roles, sharpening accountability, inspiring a culture of daily improvement, and focusing on enhancing the role of digital. The company is also working on reinforcing competitive advantages and creating value across the system as it prepares for the next chapter.

A：In the second quarter, organic revenue grew 6%, and unit case volume grew 5%, benefited from factors like favorable weather, strong global activation around the FIFA World Cup, and easier prior-year comparison. On a two-year basis, volume growth is 2%. Earnings per share of 97 cents increased 11%, with free cash flow at approximately $6.9 billion, an increase versus the prior year.

A：Coca-Cola is awaiting the court's decision after presenting oral arguments. The company continues to vigorously defend its position and remains confident in its chances of prevailing on appeal, without any specific financial impact mentioned at this stage.

A：Production operations at the four facilities in the US have largely resumed, with no impact to the second-quarter results or the second half. The Webster facility is ramping up capacity and the Fairlife team is recognized for their swift action and dedication.

A：The external environment remains uncertain, but Coca-Cola's strong first half performance and business flexibility give confidence in the updated outlook for the year.

A：For the remainder of the year, Coca-Cola expects to deliver at the high end of its prior revenue guidance with organic revenue growth approximately 5%. The company now expects comparable currency adjusted earnings per share growth, excluding acquisitions and divestitures, to be 7 to 8%. The overall impact of the cost basket is manageable, with divestitures expected to be a 2 to 3% headwind to comparable net revenues and a 1% headwind to comparable earnings per share. The company expects a one point currency tailwind to comparable net revenues and a three point currency tailwind to comparable earnings per share for the full year 2026, with an underlying effective tax rate of 19.9%. The company now expects comparable earnings per share growth of 9% to 10% versus 2025.

A：The company's success in the first half of the year was attributed to its focus on becoming more formal in the market, engaging with more brands and categories, and being consumer-centric in a challenging global economic climate. It played its Retail Gross Margin (RGM) toolkit to address both affordability and premiumization, closely following consumer trends.

A：The existing productions at the Webster plant were returning to normal, and the incremental capacity at Webster was ramping up as planned. The timing and operational status of this capacity were not disrupted and the plant's performance was in line with expectations.

A：The impact of the Webster plant's capacity expansion was positive, with increased availability of products and no disruption to consumer service. The company aimed to maintain main stock units on shelf due to strong demand and expected innovation flexibility to increase in the future. There was no mention of changes in brand development, but the team was excited about the brand's progress.

A：The company's approach to positioning for long-term growth in India is consistent with its strategy, focusing on affordability, revenue growth management, and some investment in price mix. It is also investing in value share losses and aims to build the equity of its top 10 brands. Investment priorities include strengthening core business operations, equipment, and capabilities for better consumer engagement, particularly in the cold drinks segment. Geographical mix and global market dynamics are factors considered in this strategy.

A：The company sees itself in a good position to argue for a favorable outcome of the tax case. If an unfavorable outcome were to occur, the potential implications could not be clearly stated. As for the timeline of a resolution, no specific range was provided. In terms of capital allocation following a positive outcome, this would be revisited and considered after a favorable decision.

A：The expected timing for a decision from the appellate court is still unknown, but it is mentioned that it could take 6 to 12 months.

A：The potential outcomes are winning the case with recourse to previously deposited funds with the IRS in the best case scenario, and detailing the worst-case scenarios in the company's financial disclosures.

A：The FIFA World Cup was a successful activation campaign contributing to the strong growth of Coca-Cola and Powerade. It involved getting insights, generating innovation, and executing a global yet market-intimate plan that led to the distribution of 1 billion Panini stickers worldwide and engaging consumers in different markets.

A：The first-party data collected during the World Cup, amounting to 25 million new accretive data points, will be used to bring consumer experiences from one campaign to the next and to aid in future marketing campaigns like Coke and Meals or Powerade moments.

A：The World Cup had a significant impact on Coca-Cola's presence, with the highest incidence of beverages in a World Cup ever, representing about 80% with roughly one drink per attendee. There was also a lot of work done during anticipation with different packaging sizes and formats. The most important outcome, however, is the consumer engagement that can be leveraged for future campaigns.

A：The key factors that contributed to winning the Marriott contract included becoming consumer and customer-centric, as well as the ability to work together with Monster and bring value to customers through powerful global brands and personalized experiences.

A：The transition with Monster is expected to be accretive to volume and partnership, as it represents an opportunity to work together and extend the partnership to other areas. It is part of the plan to continue amplifying the opportunity and extending the relationship with customers and consumers.

A：The company's focus moving forward is on driving quality top line growth and managing both the cost base and investment base to sustain it over time, which is expected to result in the implied margin in the algorithm being realized.

A：In North America, the consumer has continued to participate well in the industry's growth. However, lower-income groups are facing pressure and the focus has been on value rather than just pricing. The company has worked to make its brands value-relevant and at the end of the day, worth choosing by consumers. They have also made it easier for consumers to choose their brands by having entry prices at the right level through different packaging formats.

A：The recent innovation in Mr. Pibb involved a product with a higher caffeine content and a more bold cherry flavor, resulting in encouraging results for the brand. Also, the exportation of ideas and innovations, such as theSprite's, has helped to get momentum in various markets, including a successful export to Asia.

A：The company is pleased with the strongest volume growth in recent years and confident that the balance between volume and price mix is happening as anticipated. Consumer reactions worldwide have been positive, with options provided on affordability and premiumization. The underlying capabilities, such as durable and balanced top-line growth, are expected to continue driving performance. The World Cup is one factor among others contributing to strong volume, but it is not the sole impact.

A：Henrique attributed the revenue growth to the algorithm gaining more contributors, which has provided the company with more degrees of freedom in its operations.

A：The diversity in markets and categories is indicative of a better control of how the company delivers its durable long-term algorithm.

A：The first half of the year was positively influenced by extra trading days, significant events like the World Cup, and favorable weather, which helped the company capture those opportunities and build momentum.

A：The long-term growth algorithm is rooted in typical industry growth rates, which are usually around 3 to 4%, and the company aims to achieve a range between 4 to 6% growth, with a clear ambition to be at the higher end of this range sustainably.

A：The updated guidance implies more bottom line leverage for the year, possibly due to cost efficiencies and the company's strategy to stay ahead by investing in brand portfolio and consumer insights, as well as leveraging AI and digital capabilities for better quality investments.

A：The company is reflecting benefits on and below the line in its guidance for the rest of the year and looks forward to delivering on those benefits.