Coca-Cola exceeds expectations thanks to the boost from sugar-free drinks

Sugar-free beverages and smart pricing strategies are driving the Coca-Cola giant beyond expectations, confirming its leadership in the global soft drinks market.

Coca-Cola surprised Wall Street by exceeding revenue and profit expectations in the third quarter, driven by steady demand for both traditional and sugar-free drinks. The shares of the American company rose 2.5% in pre-market trading, while the company confirmed its full-year targets despite a challenging economic environment, according to CEO James Quincey.

Quarterly revenues reached $12.46 billion, surpassing estimates of $12.39 billion. In the U.S. and abroad, the growth of sugar-free and energy drinks offset weaker performance from classic Coca-Cola. In North America, water, ready-to-drink beverages, and energy drinks drove demand, with Coca-Cola Zero Sugar up 14% for the second consecutive quarter, and Diet Coke rising about 2%. Overall volumes increased by 1%, with prices up 6%.

For cost-conscious consumers, Coca-Cola will launch 7.5-ounce mini cans priced under $2, and will introduce a new version with cane sugar, part of the “Make America Healthy Again” movement promoted by the Trump administration. PepsiCo, Coca-Cola’s main competitor, also reported better-than-expected results, thanks to smaller snacks and healthier drinks, confirming the trend of consumers favoring accessible and lighter products.

Earnings per share, excluding extraordinary items, were 82 cents, above analysts’ estimate of 78 cents. Coca-Cola thus demonstrates its ability to balance innovation and strategic pricing, maintaining leadership in the global beverage market.