Coca-Cola Co.’s focus on smaller sizes is paying off with cash-strapped consumers as the world’s largest beverage maker boosted sales last quarter more than expected.
Atlanta-based Coca-Cola reported organic revenue growth of 10%, topping the average of analyst estimates, and notching the company’s best organic growth in five quarters. Adjusted earnings per share also outpaced expectations.
Shares of Coca-Cola rose as much as 3.5% in premarket trading.
The stock had gained about 8% this year, compared with a roughly 5% increase in the S&P 500 Index.
The results show that Coca-Cola’s efforts to win over consumers looking for beverages at different price points are paying off at a time when spending between lower income and more affluent households is diverging.
The beverage company has been offering more single serve and smaller sizes to lower the price points for the most stressed consumers, while also selling premium items to those who
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