Coca-Cola is Done Raising Prices in the U.S. and Europe This Year

Coca-Cola had good news for its loyal U.S. and European customers. This week, the company announced it would not be hiking up prices for the remainder of the year in developed markets like the U.S. and Europe.

For two years now Coca-Cola has been raising prices on its drinks to keep up with higher costs, CNBC reported. Coca-Cola, along with Pepsi, both reported strong sales growth due to the higher prices.

However, Coke CEO, James Quincey, admitted on a company conference call that U.S. and European customers are now switching to private label bottled water and juices. “Across the sector, consumers are increasingly cost conscientious. They are looking for value and stocking up on items on sale,” Quincey also said.

Pepsi is in the same boat and has also experienced a decline in customer demand. The company reported a 4.5% decline for beverage volume in the second quarter while its Quaker Foods North America unit’s volume fell 5%, per CNBC.