Asia PacificNarrow moat

Coca-Cola (KO) — moat facet

The one geographic segment earning less than it did in 2016.

Asia Pacific is the geographic segment where the concentrate model has not compounded. It brought in $5,328 million of third-party revenue in 2025 and $2,042 million of operating income, about 36.2% of its segment revenue.12

Asia Pacific operating income ($m)$2,210m2016$2,278m2018$2,282m2019$2,133m2020$2,325m2021$2,057m2023$2,156m2024$2,042m2025Coca-Cola Forms 10-K FY2018, FY2021, FY2025; earlier years as reported then
Nine years and no growth: 2025 was the lowest year on the chart.

Nine years earlier the numbers were close to the same. Revenue was $4,788 million in 2016 as reported then and operating income $2,210 million, a margin of about 41.7%.34 So revenue rose about 11% and operating income fell about 8% over a period in which Latin America's operating income nearly doubled.5

Some of the pressure is in the product mix. Cost of goods sold was 31.7% of segment revenue in 2025, against 17.5% in Latin America.67 In 2025 the segment's operating income fell 5.3% to $2,042 million, which the 10-K attributes to higher commodity costs, other operating charges including a $41 million impairment, an 8% currency drag and structural changes, against 1% more concentrate volume and pricing and mix.89

Volume has been flat. Unit case volume was even in 2025: Greater China and Mongolia grew 1%, the ASEAN and South Pacific unit fell 3%, and India and Southwest Asia and Japan and South Korea were each even.10 The company's own Indian bottler is not in this segment but in Bottling Investments, and its partial refranchising in 2024 and 2025 shows up there.11

The June 2026 quarter showed the gap between volume and money plainly. Unit case volume grew 8%, the most of any segment, but third-party revenue rose 1.6% to $1,487 million and operating income 1.4% to $656 million.1213 Over the first half operating income fell 6.2%, to $1,192 million.1415

The case for the region is future volume, and nine years of results do not yet show it paying. The measure is operating income per unit case: if volume keeps growing at the 8% of the June quarter and operating income keeps growing at about 1%, the added volume is coming at prices that earn almost nothing.

Moat trajectory: Narrowing

Operating income down 5.3% in 2025 and 6.2% in the first half of 2026 while volume grew.

The number that tests this moat
Reported
Asia Pacific operating income, first half
$1,192M in H1 2026, down 6.2%

Volume grew 8% in the June quarter; profit falling alongside it means the added volume earns little.

Source: Coca-Cola Form 10-Q, Q2 2026 ↗
References
  1. ReportedIt brought in $5,328 million of third-party revenue in 2025 and $2,042 million of operating income, about 36.2% of its segment revenue.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  2. Moat Explorer calcIt brought in $5,328 million of third-party revenue in 2025 and $2,042 million of operating income, about 36.2% of its segment revenue.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. ReportedRevenue was $4,788 million in 2016 as reported then and operating income $2,210 million, a margin of about 41.7%.
    Coca-Cola Form 10-K FY2018 - segment note 2016-2018 as reported then: third-party revenue and operating income by segment (2016 EMEA $7,014M/$3,668M, Latin America $3,746M/$1,953M, North America $6,587M/$2,614M with intersegment revenue $3,738M, Asia Pacific $4,788M/$2,210M, Bottling Investments $19,601M/$1M; Bottling Investments $3,760M in 2018 and operating losses of $962M in 2017 and $649M in 2018) — FY2016-FY2018 · publ. February 2019 · source ↗
  4. Moat Explorer calcRevenue was $4,788 million in 2016 as reported then and operating income $2,210 million, a margin of about 41.7%.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  5. Moat Explorer calcSo revenue rose about 11% and operating income fell about 8% over a period in which Latin America's operating income nearly doubled.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  6. ReportedCost of goods sold was 31.7% of segment revenue in 2025, against 17.5% in Latin America.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  7. Moat Explorer calcCost of goods sold was 31.7% of segment revenue in 2025, against 17.5% in Latin America.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  8. ReportedIn 2025 the segment's operating income fell 5.3% to $2,042 million, which the 10-K attributes to higher commodity costs, other operating charges including a $41 million impairment, an 8% currency drag and structural changes, against 1% more concentrate volume and pricing and mix.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  9. Moat Explorer calcIn 2025 the segment's operating income fell 5.3% to $2,042 million, which the 10-K attributes to higher commodity costs, other operating charges including a $41 million impairment, an 8% currency drag and structural changes, against 1% more concentrate volume and pricing and mix.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  10. ReportedUnit case volume was even in 2025: Greater China and Mongolia grew 1%, the ASEAN and South Pacific unit fell 3%, and India and Southwest Asia and Japan and South Korea were each even.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  11. ReportedThe company's own Indian bottler is not in this segment but in Bottling Investments, and its partial refranchising in 2024 and 2025 shows up there.
    Coca-Cola Form 10-K FY2025 - segment note 2023-2025 (third-party revenue, intersegment revenue, cost of goods sold, operating income by segment; 2025: EMEA $10,833M/$4,298M, Latin America $6,331M/$3,742M, North America $19,579M/$5,070M, Asia Pacific $5,328M/$2,042M, Bottling Investments $5,726M/$426M, Corporate $144M/-$1,816M); Global Ventures sunset from 1 January 2025 with Costa, innocent and dogadan moved into EMEA; BodyArmor trademark impairments $760M (2024) and $960M (2025), carrying value $2,440M; $1,274M charge on the African bottling operations held for sale; unit case volume and operating income drivers by segment; refranchising in the Philippines, Bangladesh and India — FY2023-FY2025 · publ. February 2026 · source ↗
  12. ReportedUnit case volume grew 8%, the most of any segment, but third-party revenue rose 1.6% to $1,487 million and operating income 1.4% to $656 million.
    Coca-Cola Form 10-Q for the quarter ended July 3, 2026 - segment third-party revenue and operating income for the three and six months (Q2 2026: EMEA $3,087M/$1,309M, Latin America $1,839M/$1,177M, North America $5,405M/$1,695M, Asia Pacific $1,487M/$656M, Bottling Investments $1,525M/$91M; six months operating income $2,568M/$2,215M/$3,301M/$1,192M/$282M against $2,390M/$1,861M/$2,962M/$1,271M/$178M); unit case volume growth by segment — Q2 2026 · publ. July 2026 · source ↗
  13. Moat Explorer calcUnit case volume grew 8%, the most of any segment, but third-party revenue rose 1.6% to $1,487 million and operating income 1.4% to $656 million.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
  14. ReportedOver the first half operating income fell 6.2%, to $1,192 million.
    Coca-Cola Form 10-Q for the quarter ended July 3, 2026 - segment third-party revenue and operating income for the three and six months (Q2 2026: EMEA $3,087M/$1,309M, Latin America $1,839M/$1,177M, North America $5,405M/$1,695M, Asia Pacific $1,487M/$656M, Bottling Investments $1,525M/$91M; six months operating income $2,568M/$2,215M/$3,301M/$1,192M/$282M against $2,390M/$1,861M/$2,962M/$1,271M/$178M); unit case volume growth by segment — Q2 2026 · publ. July 2026 · source ↗
  15. Moat Explorer calcOver the first half operating income fell 6.2%, to $1,192 million.
    Moat Explorer calculation from Coca-Cola's Forms 10-K FY2018, FY2021 and FY2025 and the Q2 2026 10-Q: segment shares of revenue and operating income, operating margins on segment revenue, cost of goods sold as a share of segment revenue, growth rates and compound growth — FY2016 to Q2 2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026