Lesson 6 of 8
Pricing power, measured
Coca-Cola split its 2025 revenue change into volume, price and mix, currency and acquisitions. Latin America shows why a large price number is not always power.
By Javier Sanz
Founder of ValueScreener. Built Ninety Nine, a securities services provider, and sold it to a tier-one global bank; ran operations and internationalization at Alpaca, the brokerage API.
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In one minute
- Some companies publish the split of their own revenue change into volume, price and mix, currency and acquisitions, which turns pricing power from a claim into a figure.
- Coca-Cola's 2025 net operating revenues rose 2 percent, from volume of 1 point, price and mix of 4 points, currency of minus 2 and acquisitions and divestitures of minus 1.
- Latin America shows the trap: price and mix of 11 points against a currency effect of minus 12, which is inflation being passed through rather than power being exercised.
Pricing power means raising price without losing the volume. Both halves are needed, and a company that discloses the split of its revenue growth has handed you both.
Coca-Cola, 2025 against 2024: what moved net operating revenues
| Segment | Volume | Price and mix | Currency | Acquisitions and divestitures | Total |
|---|---|---|---|---|---|
| Consolidated | 1% | 4% | -2% | -1% | 2% |
| EMEA | 4% | 2% | 0% | -1% | 5% |
| Latin America | -1% | 11% | -12% | 0% | -2% |
| North America | -1% | 5% | 0% | 0% | 4% |
| Asia Pacific | 1% | 4% | -3% | -1% | 1% |
Reading the consolidated row
Net operating revenues were 47,941 million dollars in 2025 against 47,061 million in 2024, an increase of 880 million or 2 percent. The company attributes 1 point of that to volume and 4 points to price and mix.
So on a consolidated basis, price carried four times what volume did, and volume still grew. That is the shape pricing power takes: the price rose and the customer did not leave. Worldwide concentrate sales volume grew 1 percent and unit case volume was even.
The row that teaches the most
Latin America reports price and mix of 11 points. Read alone, that is a company with extraordinary pricing power.
Read beside the currency column of minus 12 points, it is something else. A business selling in a currency that fell against the dollar has to raise local prices to hold dollar revenue steady, and the price line records that as pricing while the currency line takes it back out. Volume in that segment fell 1 point and total revenue fell 2 percent.
The discipline is to read the two columns together, always. A price number unaccompanied by its currency column is not a measure of anything.
North America, and what a clean reading looks like
North America shows price and mix of 5 points, no currency effect, no acquisition effect, and volume of minus 1 point. Total revenue rose 4 percent.
That is the honest version of the question: the price rose 5 points and volume fell 1, so the company kept about four fifths of the price increase in revenue. Whether that is a good trade depends on the margin on the lost volume, which this disclosure does not give.
What to do where there is no such table
Most companies publish nothing like it. Where they do not, the substitutes are a unit count in the operating statistics, an average selling price computed as revenue over that count, and any disclosure of a price increase and its effective date. All three are weaker, and all three are better than an assertion.
Check yourself
What did Coca-Cola attribute its 2 percent consolidated revenue increase to in 2025?
- Entirely to volume
- Volume of 1 point, price and mix of 4, currency of minus 2, and acquisitions and divestitures of minus 1
- Entirely to acquisitions
Show the answer
Answer: B.
Net operating revenues rose from 47,061 million dollars to 47,941 million, and the company publishes the four components of the change by segment.Latin America reported price and mix of 11 points. Why is that not evidence of pricing power?
- Because volume grew
- Because the currency column was minus 12 points, so local prices rose largely to offset a falling currency
- Because the segment is small
Show the answer
Answer: B.
Total revenue for the segment fell 2 percent with volume down 1 point. The price line and the currency line have to be read together.North America shows price and mix of 5 points and volume of minus 1. What does that say?
- The price increase failed
- The company kept about four fifths of the price increase in revenue, with no currency or acquisition effect to complicate it
- Nothing, without a margin figure
Show the answer
Answer: B.
It is the clean case: a price increase into slightly falling volume. Whether the trade was good depends on the margin on the volume lost, which this table does not give.Sources
- The Coca-Cola Company, Form 10-K for the year ended 31 December 2025, filed 2026-02-20, accession 0001628280-26-010047: net operating revenues, the estimated percentage impact of volume, price and mix, currency and acquisitions and divestitures by operating segment, and the concentrate sales volume and unit case volume discussion.
What this leaves out
- The company describes the table as an estimated impact, and notes that rows may not add due to rounding. It is management's attribution of its own revenue change, not an independent measurement.
- Price and mix are reported together, so a figure in that column can come from selling a more expensive product rather than from charging more for the same one.
- The disclosure covers revenue only. It says nothing about the margin on volume gained or lost.
- Nothing here is a view on The Coca-Cola Company or on any security.