EMEAWide moat

Coca-Cola (KO) — moat facet

A concentrate business with a coffee chain folded in, whose dollar profit has grown under 2% a year for nine years.

Europe, the Middle East and Africa is the second-largest segment and, since 2025, the one with a coffee chain inside it. It brought in $10,833 million of third-party revenue in 2025 and $4,298 million of operating income, about 37.3% of its segment revenue.12

EMEA third-party revenue ($m)$7,014m2016$7,138m2018$5,534m2020$6,564m2021$10,152m2023$10,278m2024$10,833m2025Coca-Cola Forms 10-K FY2018, FY2021, FY2025; 2023-25 recast to include Costa
The step up after 2021 is Costa moving into the segment, not a surge in concentrate sales.

That margin is lower than the segment used to earn, and the reason is a reporting change rather than a worse business. From 1 January 2025 Coca-Cola closed its Global Ventures segment, set up in 2019 to hold Costa, and moved Costa's retail business, innocent and doğadan into EMEA.3 Before that, EMEA was almost entirely concentrate: in 2021 it earned $3,735 million on $7,193 million of segment revenue, about 51.9%, while Global Ventures earned $293 million on $2,805 million.45 Cost of goods sold in the recast segment was 28.6% of revenue in 2025.67

Growth has been slow even with Costa counted. Operating income was $3,668 million in 2016 as reported then and $4,298 million in 2025, about 17% more in nine years.8910 In 2025 revenue grew about 5.4% and operating income 1.0%; the filing credits a 4% rise in concentrate sales volume and pricing, against higher commodity and marketing costs, a 5% currency drag and the effect of divestitures.1112

The volume is not coming from Europe. Unit case volume grew 3% across the segment in 2025: 7% in Eurasia and the Middle East and 3% in Africa, while Europe fell 1%.13 The growth sits in markets with weaker currencies, which is why so much of it disappears on translation into dollars; the 10-K names the Turkish lira among the currencies that hurt the segment.14

The latest quarter was weaker. In the June 2026 quarter volume grew 4%, third-party revenue rose 2.6% to $3,087 million and operating income fell 1.2% to $1,309 million, a margin of about 40.4% against 41.7%.1516 Across the first half operating income rose 7.4%.1718

Nothing in this segment is broken, but its profit has grown about 1.8% a year for nine years.19 The figure that tests it is operating income growth in dollars; if volume keeps rising in Eurasia and Africa and dollar profit keeps standing still, the segment's growth is being spent on currency.

Moat trajectory: Holding steady

Operating income up 1.0% in 2025 and down 1.2% in the June 2026 quarter, on rising volume.

The number that tests this moat
Reported
EMEA operating income, latest quarter
$1,309M in Q2 2026, down 1.2%

Volume is growing in Eurasia and Africa; flat dollar profit means that growth is being lost to currency.

Source: Coca-Cola Form 10-Q, Q2 2026 ↗
References
  1. ReportedIt brought in $10,833 million of third-party revenue in 2025 and $4,298 million of operating income, about 37.3% 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 $10,833 million of third-party revenue in 2025 and $4,298 million of operating income, about 37.3% 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. ReportedFrom 1 January 2025 Coca-Cola closed its Global Ventures segment, set up in 2019 to hold Costa, and moved Costa's retail business, innocent and doğadan into EMEA.
    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 ↗
  4. ReportedBefore that, EMEA was almost entirely concentrate: in 2021 it earned $3,735 million on $7,193 million of segment revenue, about 51.9%, while Global Ventures earned $293 million on $2,805 million.
    Coca-Cola Form 10-K FY2021 - segment note 2019-2021 as reported then, including Global Ventures (2021 revenue $2,805M, operating income $293M) and EMEA (2021 segment revenue $7,193M, operating income $3,735M); Bottling Investments third-party revenue $7,431M in 2019; in the second quarter of 2019 the Company decided to maintain its controlling stake in CCBA, which then no longer qualified as held for sale — FY2019-FY2021 · publ. February 2022 · source ↗
  5. Moat Explorer calcBefore that, EMEA was almost entirely concentrate: in 2021 it earned $3,735 million on $7,193 million of segment revenue, about 51.9%, while Global Ventures earned $293 million on $2,805 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 ↗
  6. ReportedCost of goods sold in the recast segment was 28.6% of revenue in 2025.
    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 in the recast segment was 28.6% of revenue in 2025.
    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. ReportedOperating income was $3,668 million in 2016 as reported then and $4,298 million in 2025, about 17% more in nine years.
    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 ↗
  9. ReportedOperating income was $3,668 million in 2016 as reported then and $4,298 million in 2025, about 17% more in nine years.
    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 ↗
  10. Moat Explorer calcOperating income was $3,668 million in 2016 as reported then and $4,298 million in 2025, about 17% more in nine years.
    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 ↗
  11. ReportedIn 2025 revenue grew about 5.4% and operating income 1.0%; the filing credits a 4% rise in concentrate sales volume and pricing, against higher commodity and marketing costs, a 5% currency drag and the effect of divestitures.
    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. Moat Explorer calcIn 2025 revenue grew about 5.4% and operating income 1.0%; the filing credits a 4% rise in concentrate sales volume and pricing, against higher commodity and marketing costs, a 5% currency drag and the effect of divestitures.
    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 ↗
  13. ReportedUnit case volume grew 3% across the segment in 2025: 7% in Eurasia and the Middle East and 3% in Africa, while Europe fell 1%.
    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 ↗
  14. ReportedThe growth sits in markets with weaker currencies, which is why so much of it disappears on translation into dollars; the 10-K names the Turkish lira among the currencies that hurt the segment.
    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 ↗
  15. ReportedIn the June 2026 quarter volume grew 4%, third-party revenue rose 2.6% to $3,087 million and operating income fell 1.2% to $1,309 million, a margin of about 40.4% against 41.7%.
    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 ↗
  16. Moat Explorer calcIn the June 2026 quarter volume grew 4%, third-party revenue rose 2.6% to $3,087 million and operating income fell 1.2% to $1,309 million, a margin of about 40.4% against 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 ↗
  17. ReportedAcross the first half operating income rose 7.4%.
    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 ↗
  18. Moat Explorer calcAcross the first half operating income rose 7.4%.
    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 ↗
  19. Moat Explorer calcNothing in this segment is broken, but its profit has grown about 1.8% a year for nine years.
    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