Coca-Cola Europacific Partners NASDAQ: CCEP reported what CEO Damian Gammell described as a “good start to the year” in its Q1 2026 trading update, citing positive mix, solid underlying volume growth and continued market share gains across key beverage categories.
While Q1 is typically the company’s smallest quarter, management said performance was “broadly in line with expectations” and reaffirmed full-year 2026 guidance for 3% to 4% revenue growth, around 7% operating profit growth and comparable free cash flow of at least €1.7 billion, which CFO Ed Walker noted is “half two-weighted as usual.”
Revenue, volumes and mix: Europe and APS
Gammell said revenue continued to benefit from “positive mix drivers” seen last year, supported by factors including additional cooler placements and the growth of Monster. He also pointed to “solid comparable volume growth beyond the benefit of a slightly earlier Easter.”
On a comparable basis, CCEP said Europe volumes grew 1.4%, “primarily driven by growth in Germany and GB,” with particular strength in the at-home channel, which the company said typically sees more Easter-related spending and larger packs. In the Australia Pacific & Southeast Asia (APS) segment, comparable volumes rose 1.9%, driven by the Philippines, double-digit growth in the Pacific Islands and Papua New Guinea, and improvement in Indonesia, where sparkling beverages benefited from a “solid Ramadan festive period,” according to Gammell.
Walker provided additional detail on Europe’s pricing and mix dynamics. He said the company was “pleased” with Q1’s “overall revenue growth of 9.8% in total,” noting the largest portion was from volume with “the extra days at just over 8%.” He said Europe continued to see “very positive brand mix… fueled by energy,” while package mix was positive but offset by Easter-related shifts toward multi-serve, at-home occasions that typically carry lower revenue per case. Walker also cited a “slight headwind from country mix,” with Great Britain and Germany growing faster but having “slightly lower revenue per case versus the other markets in Europe.”
In APS, Gammell said revenue per case faced a headwind from the Suntory alcohol exit, which he said had “just over 3% impact on APS revenues and 1% at a group level.”
Innovation and commercial execution highlighted across brands
Management repeatedly emphasized product innovation, packaging and marketing as key drivers of category growth and share gains. Gammell said Q1 innovations were “largely focused around the Coca-Cola trademark,” adding that “bolder moves on Coke are the name of the game.” He highlighted distribution of Coca-Cola Cherry Float in Great Britain supporting a broader Cherry rollout, and said “The Devil Wears Prada 2 campaign” was supporting improvements in Diet Coke.
Gammell also cited a strong start for a new 500 ml “super can” in Great Britain and the relaunch of Coca-Cola Zero Sugar Zero Caffeine with “black and gold packaging,” supported by a partnership with the “007 First Light” video game. In ready-to-drink alcohol (ARTD), he noted additions including “BACARDÍ Spiced & Coca-Cola” and “Absolut Vodka & Sprite Pineapple.”
Monster was again a central growth driver. Gammell said Monster volumes were up “by 20% or more,” supported by new launches and core variant growth such as Ultra White. He called out multiple launches including “Rehab,” a tea-based still lineup, and “Viking Berry,” which he said was the “strongest energy release to date” in Great Britain and had already outperformed prior year launches.
The company also pointed to gains in away-from-home execution and equipment placements. Gammell said Q1 saw “great customer wins in QSR,” including Chili’s in the Philippines and Great Britain holiday park operator Parkdean. He also said the company added “around 40,000 more Coke and Monster coolers” so far this year, with plans to add up to 1,000 in Co-op convenience stores in Great Britain.
Demand and inflation: “Not as severe as 2022,” management says
Analysts pressed management on inflation and volatility, including comparisons to 2022. Gammell said he did not see the current situation as comparable, while Walker said the company had “learned a lot” from 2022 and described a three-part approach: supply security, cost mitigation and demand management.
Walker said the company has worked to ensure “multiple sources of supply for key commodities and materials,” adding that “as we sit here today, we’re in great shape and no material risks from a supply perspective.” On costs, he said CCEP has “a very extensive hedging program” and is “over 85% hedged now for the remainder of the year.” He added that since 2022 CCEP has also worked directly with suppliers to hedge their exposure or reduce risk within their supply chains.
On demand, Walker said inflation pressures are a broader food-and-drink challenge rather than company-specific, but added: “As we sit here today, we don’t think it will be as severe as 2022.” He also pointed to revenue growth management tools and the company’s broad portfolio as levers to pull if conditions change.
Gammell acknowledged “increasingly uncertain” macro conditions, “particularly given the situation in the Middle East,” but said CCEP’s operating model is resilient. He said the company’s planning assumed “a temporary market disruption,” and that it was not currently seeing any “material impact on consumers,” though it is monitoring conditions closely.
Regional and channel commentary: Easter, Germany and France
On channel mix in Europe, Gammell said Q1’s at-home tilt was consistent with Easter, which he described as “a much more at-home occasion,” and said there was “nothing to read into in Q1” regarding away-from-home trends. He said improving spring weather in Northern Europe was “definitely giving away from home a boost” into April, and that the next couple of quarters are key for away-from-home in Europe.
Asked about Germany and France, Gammell said Germany benefited significantly from Easter and remains “quite a competitive market,” adding that CCEP needs to continue refining “price promo architecture” to sustain volume growth. On France, he said the market had faced “a lot of pricing inflation” driven by taxation but indicated the business had improved as the company cycled that disruption, calling out March performance as encouraging.
Gammell also addressed portfolio shifts, noting that sugar-free offerings are “continu[ing] to accelerate,” led by Coke Zero, while Diet Coke was benefiting from “more focus” and investment. For Coca-Cola Original Taste, he said performance was strong in single-serve and smaller pack formats, while “most of the volume weakness has been on large PET,” a trend he said has persisted for several quarters.
AI initiatives, capital investment and bottling ambitions
Management discussed ongoing investments in supply chain and digital capabilities, including a new “mega plant outside Manila” that Gammell said remains “on track to begin production at the start of 2027.” He also highlighted the launch of “Kira,” a natural language chat interface developed for the insights team to analyze data and support faster decision-making.
On artificial intelligence more broadly, Gammell said CCEP is seeing benefits in planning and forecasting accuracy, and has rolled out tools such as Copilot across the business. He said CCEP is also leveraging AI embedded in partner platforms including Salesforce and ServiceNow, and is using AI to improve promotional efficiency. He added that the company is working with customers using outlet-level sales information to support “share of shelf, cooler space, products on display” discussions, as well as analyzing promotional impacts on household penetration, frequency and loyalty.
In response to a question about potential new bottling markets following news about the Pepsi bottling agreement in Denmark and Finland changing hands in 2029, Gammell reiterated CCEP’s “broader ambition to become a bigger bottler in the Coke family.” He said performance remains key, and noted the company’s balance sheet and capital allocation framework retain the ability to do a transaction, while any expansion ultimately depends on discussions with The Coca-Cola Company.
CCEP also referenced shareholder returns, with Gammell pointing to a dividend declaration and an ongoing share buyback program. In closing remarks, he said the company was reaffirming guidance despite the uncertain backdrop and highlighted upcoming marketing initiatives, including FIFA World Cup activation and planned innovation across brands through the rest of the year and into 2027.
About Coca-Cola Europacific Partners NASDAQ: CCEP
Coca-Cola Europacific Partners is a major independent bottler and distributor of nonalcoholic ready-to-drink beverages, operating under a long-standing franchise relationship with The Coca-Cola Company. The business manufactures, bottles, sells and delivers a broad portfolio of global and local beverage brands, including still and sparkling soft drinks, waters, juices, sports drinks and ready-to-drink teas and coffees. Its activities encompass production, packaging, marketing and route-to-market distribution for retail, foodservice, convenience and vending customers.
The company was created through the combination of Coca-Cola European Partners and Coca-Cola Amatil in 2021, bringing together beverage operations across Europe and the Asia-Pacific region.
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