Coke, Pepsi bottlers see sales fall

CHICAGO (Reuters) - Coca-Cola Enterprises Inc <CCE.N> topped profit expectations and raised its 2009 forecast on Wednesday, while rival bottler PepsiAmericas Inc <PAS.N> missed analysts' earnings forecasts and cut its outlook.

The companies, which bottle and distribute soft drinks, have been trying to offset the impact of consumers' frugal purchasing habits. Many consumers buying drinks in stores have moved away from some higher-end beverages such as bottled teas, and U.S. restaurant sales have also suffered in the downturn.

Sales declined and fell short of analysts' expectations at both companies.

PepsiAmericas, which is being acquired by PepsiCo Inc <PEP.N>, said it expected sales pressure to persist for the rest of 2009.

Shares of PepsiAmericas slipped 1.2 percent to $29.10 in light premarket trading, while Coke Enterprises rose 2.4 percent to $20.50.

Coke Enterprises, the largest bottler of Coca-Cola Co <KO.N> drinks, said sales by volume fell 6.5 percent, after declining 1 percent in the second quarter and 0.5 percent in the first quarter.

The company felt pressure in North America, where volume fell 10 percent. A year earlier, U.S. sales got a boost from Olympic-related promotions and the July 4 holiday falling in the quarter.

Last week, Coca-Cola reported disappointing revenue on a 4 percent decline in sales volume in North America. [ID:nN20380392] Analysts said those results boded poorly for Coke Enterprises, which bottles and sells about 80 percent of all the Coke drinks sold in North America, including Coca-Cola, Dasani water and Powerade sports drinks.

Coke Enterprises is selling 16-ounce cold bottles of Coca-Cola for 99 cents and taking other steps to revive U.S. sales.

In Europe, where third-quarter volume rose 4 percent, it is adding drinks such as Monster and vitaminwater to its lineup. It will also start distributing Ocean Spray juice drinks in parts of Europe in early 2010.

PROFIT UP AT COKE ENTERPRISES, DOWN AT PEPSIAMERICAS

Coke Enterprises earned $247 million, or 50 cents per share, in the third quarter, up from $214 million, or 44 cents per share, a year earlier.

Excluding items, it earned 51 cents per share, topping the analysts' average forecast of 46 cents, according to Thomson Reuters I/B/E/S.

Coke Enterprises' sales fell 3 percent to $5.57 billion, while analysts expected $5.71 billion. Prices climbed 7.5 percent.

The company forecast full-year earnings of $1.54 to $1.57 per share. Last month, it said profit should be at the higher end of its previous outlook of $1.44 to $1.49.

PepsiAmericas earned $63.5 million, or 51 cents a share, down from $73.1 million, or 58 cents a share, a year earlier.

Excluding items, it earned 59 cents a share, while analysts anticipated 62 cents.

Sales fell 15 percent to $1.13 billion at PepsiAmericas, while analysts expected $1.22 billion. Its U.S. volume slid 9 percent.

PepsiAmericas said it now expects 2009 earnings of $1.83 to $1.87 per share, excluding items, down from its prior view of $1.87 to $1.94.

Pepsi Bottling Group Inc <PBG.N>, the largest bottler of Pepsi drinks, posted a slightly greater-than-expected increase in quarterly profit earlier this month. Its revenue also lagged expectations.

(Additional reporting by Abhishek Takle in Bangalore and Martinne Geller in New York; Editing by Lisa Von Ahn)