Coca-Cola’s investment in the World Cup didn’t exactly pay off

The numbers: Disappointing. The Coca-Cola Company reported second-quarter profits of $2.6 billion, down 3% from the same period last year. Revenues fell 1.4% to $12.6 billion, short of expectations. The stock slipped after results.

The takeaway: The soda business still looks relatively flat. In North America, carbonated drink sales remained level, though non-carbonated beverages rose by 1%. Diet Coke was especially soft, as a long-term downtrend for diet drinks continued. Coca-Cola’s juice drinks didn’t sell as well as usual, the company says, because of price hikes driven by higher commodity costs.

What’s interesting: Sales volumes grew by 3% during the quarter, but at a price. Coke spent a lot on its marketing efforts for the FIFA World Cup—perhaps too much, since it blamed increased marketing costs for dampening sales gains elsewhere.

the brief our picks popular latest obsessions search