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Coca

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, the world's largest beverage company, posted third-quarter revenue that missed estimates after North American sales declined and global volume grew less than predicted. The company also embarked on a plan to cut $3 billion in annual expenses by 2019.


Revenue fell to $11.98 billion in the quarter from $12 billion a year earlier, Atlanta-based Coca-Cola said today in a statement. Analysts had estimated $12.1 billion on average, according to data compiled by Bloomberg.


Chief Executive Officer Muhtar Kent is struggling with sluggish international growth and mounting concerns at home over obesity and artificial sweeteners. The woes overshadowed a U.S. market-share gain from the company's 'Share a Coke' program, which replaced its logo on bottles and cans with common names and phrases. Kent also has been squeezing expenses, including the additional cost cuts announced today.


'We recognize that we need to increase the scope and pace of change as we continue to face a challenging macroeconomic environment,' he said in the statement.


The shares fell as much as 4.1 percent to $41.50 in early trading in New York. They had risen 4.8 percent this year before today, compared with a 3 percent gain for the Standard & Poor's 500 Index.


Sales volume declined 1 in North America, while global volume grew 1 percent in the quarter. Mark Swartzberg, an analyst at Stifel Nicolaus & Co., had projected global growth of 3.4 percent.


Quarterly Profit

Net income fell 14 percent to $2.1 billion, or 48 cents a share, from $2.45 billion, or 54 cents, a year earlier. Excluding some items, profit was 53 cents a share, matching analysts' .


As part of the plan to streamline Coca-Cola, the majority of company-owned distribution territories in North America will be sold back to independent bottlers by the end of 2017, with most of the rest being refranchised by 2020.


'We worry that bigger issues will continue to plague the company,' Vivien Azer, an analyst for Cowen & Co. in New York, said this week in a note. 'Macro weakness in emerging markets, in particular Latin America, concerns over diets, and currency headwinds, to name a few.'


To contact the reporter on this story: Duane D. Stanford in Atlanta at dstanford2@bloomberg.net


To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net Bruce Rule


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