Coca-Cola (KO) stock jumped more than 4% in premarket trading on Tuesday after the company beat Wall Street’s earnings expectations and raised its guidance as consumers turned to lower-calorie trademark Coke options, such as Coke Zero and Diet Coke.
The soda giant was able to tap into health-conscious consumers and those leaning into America 250 and FIFA World Cup celebrations
Global unit case volume rose 5%, above the previous quarter’s 3% gain and the 2.5% growth Wall Street expected, per Bloomberg consensus data. In North America, volume grew 3%. Yet again, Coca-Cola Zero Sugar was the driving force, with volume up 16% in the quarter.
Right behind it were Diet Coke and Coca-Cola Light, up 7%. “Diet Coke was up 7% for the quarter, also, having its moment,” CFO John Murphy told Yahoo Finance on Tuesday. “We have Coke Zero in certain parts of Europe beginning to build scale. You’re going to hear a lot more about that in the next 12 to 18 months.” “Coke Zero, the current iteration of Coke Zero, has a taste profile that people like,” Murphy added on the winning formula. “It’s not much more complicated than that.” Innovation will be a key tactic to keep the momentum. “We’re open to exploration,” Murphy said when asked about a recent trademark filing for the term “Spricy.” “Explore, learn, and move on if it’s not [working],” Murphy continued. “Spricy is one of those potential opportunities in the future. Nothing much more to say about it at the moment.” The company raised its full-year guidance, and Murphy said Coca-Cola is seeing consistent growth and momentum heading into the back half of the year.