North AmericaNarrow moat

Coca-Cola (KO) — moat facet

The largest segment and the least Coke-like: a finished-drinks maker earning 26% on revenue that tripled in nine years.

North America is the largest segment and the one that looks least like the Coca-Cola of the textbooks. In 2025 it brought in $19,579 million of third-party revenue and $5,070 million of operating income, about 25.9% of its segment revenue, the lowest margin of the four geographic segments.12

North America intersegment revenue ($m)$3,738m2016$1,954m2017$263m2018$6m2021$7m2025Coca-Cola Forms 10-K FY2018, FY2021, FY2025; as reported then
Once the American bottlers were sold, the concentrate they bought became third-party revenue.

The revenue nearly tripled in nine years, from $6,587 million in 2016.34 Two things did it. Refranchising moved the American bottlers out of the company, so sales that had been intersegment became sales to third parties: North America's intersegment revenue was $3,738 million in 2016 and $7 million in 2025.56 And the segment became a maker of finished products, with fairlife acquired in 2020 and BodyArmor in 2021, finished-product businesses rather than concentrate.7

That is why its costs look like a manufacturer's. Cost of goods sold was $9,438 million, 48.2% of segment revenue, against 17.5% in Latin America.89 The segment sells concentrate to the bottlers too, but the dairy, sports drinks and juices it makes itself carry a manufacturer's cost structure.

The margin is also pulled down by what the finished-product bets have cost. The BodyArmor trademark was impaired by $760 million in 2024 and $960 million in 2025, leaving a carrying value of $2,440 million; the 10-K cites slower projected category growth and more competition.10 Excluding those charges the segment earned about 28.2% in 2024 and 30.8% in 2025.11 Operating income rose 11.3% in 2025, which the filing puts down to pricing, against a 1% fall in concentrate sales volume.1213

The American business is therefore a pricing story. Unit case volume fell 1% in 2025, with Trademark Coca-Cola, juices and dairy all lower.14 In the June 2026 quarter volume grew 3%, third-party revenue rose 7.5% to $5,405 million and operating income 4.6% to $1,695 million, a margin of about 31.3% against 32.2% a year earlier.1516 Over the first half operating income rose 11.4%.1718

The number to watch is the North American margin excluding impairments. It rose from about 28.2% to 30.8% in 2025 while volume fell; if it stops rising when volume stops falling, pricing has reached the point where the shopper notices.

Moat trajectory: Holding steady

Margin excluding BodyArmor impairments rose to about 30.8% in 2025, but slipped to 31.3% from 32.2% in the June 2026 quarter.

The number that tests this moat
Moat Explorer calc
North America operating margin excluding BodyArmor impairments
About 30.8% in 2025, from 28.2%

If it stops rising once volume stops falling, pricing has reached what shoppers will pay.

How it's calculated: (5,070 + 960) / 19,586 for 2025; (4,556 + 760) / 18,869 for 2024.
Source: Coca-Cola Form 10-K FY2025 (Moat Explorer calc) ↗
References
  1. ReportedIn 2025 it brought in $19,579 million of third-party revenue and $5,070 million of operating income, about 25.9% of its segment revenue, the lowest margin of the four geographic segments.
    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 calcIn 2025 it brought in $19,579 million of third-party revenue and $5,070 million of operating income, about 25.9% of its segment revenue, the lowest margin of the four geographic segments.
    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. ReportedThe revenue nearly tripled in nine years, from $6,587 million in 2016.
    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 calcThe revenue nearly tripled in nine years, from $6,587 million in 2016.
    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. ReportedRefranchising moved the American bottlers out of the company, so sales that had been intersegment became sales to third parties: North America's intersegment revenue was $3,738 million in 2016 and $7 million in 2025.
    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 ↗
  6. ReportedRefranchising moved the American bottlers out of the company, so sales that had been intersegment became sales to third parties: North America's intersegment revenue was $3,738 million in 2016 and $7 million 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. ReportedAnd the segment became a maker of finished products, with fairlife acquired in 2020 and BodyArmor in 2021, finished-product businesses rather than concentrate.
    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 ↗
  8. ReportedCost of goods sold was $9,438 million, 48.2% of segment revenue, 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 ↗
  9. Moat Explorer calcCost of goods sold was $9,438 million, 48.2% of segment revenue, 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 ↗
  10. ReportedThe BodyArmor trademark was impaired by $760 million in 2024 and $960 million in 2025, leaving a carrying value of $2,440 million; the 10-K cites slower projected category growth and more competition.
    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. Moat Explorer calcExcluding those charges the segment earned about 28.2% in 2024 and 30.8% 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 ↗
  12. ReportedOperating income rose 11.3% in 2025, which the filing puts down to pricing, against a 1% fall in concentrate sales volume.
    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 ↗
  13. Moat Explorer calcOperating income rose 11.3% in 2025, which the filing puts down to pricing, against a 1% fall in concentrate sales volume.
    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. ReportedUnit case volume fell 1% in 2025, with Trademark Coca-Cola, juices and dairy all lower.
    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 3%, third-party revenue rose 7.5% to $5,405 million and operating income 4.6% to $1,695 million, a margin of about 31.3% against 32.2% a year earlier.
    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 3%, third-party revenue rose 7.5% to $5,405 million and operating income 4.6% to $1,695 million, a margin of about 31.3% against 32.2% a year earlier.
    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. ReportedOver the first half operating income rose 11.4%.
    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 calcOver the first half operating income rose 11.4%.
    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 ↗
Sources
Generated September 23, 2026