Coca-Cola has issued a warning to its customers ahead of a price increase on its products.

The drinks giant has announced average selling prices have increased by 12 per cent.

The increases were made at the end of last year, and the company warned “there will be price increases across the world in 2023".

The costs for customers in Europe increase by 15 per cent last quarter compared to the previous year.

James Quincey, chief executive of Coca-Cola, said: “While 2022 brought many challenges, we are proud of our overall results in a dynamic operating environment.

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“We are keeping consumers at the centre of our innovation and marketing investments, while also leveraging our expertise in revenue growth management and execution.

“Our growth culture is leading to new approaches, more experimentation, and improved agility to drive growth and value for our stakeholders.”

Mr Quincey added: “There will be price increases across the world in 2023.

“Inflation is likely to moderate as we go through the year, and therefore we expect the rate in which prices are going to increase will start to moderate and become more normal by the end of the year.

“It looks like the European economy is going to avoid a technical recession, but clearly consumer demand is softening, and I think that is likely to continue into the rest of the year.”

The chief executive was speaking to investors at a trading update as the company revealed an increase in adjusted earnings per share of between four and five per cent.

That was up on the average analyst estimate of 2.96 per cent growth.

While Coca-Cola’s revenue rose 7 per cent to $10.1 billion in the final quarter of 2022.