Coke's still bubbling

The economy might be losing its fizz, but unwavering devotion to carbonated sugar water is keeping at least one business afloat.

Coca-Cola reported a beat in both top and bottom lines today, with third-quarter sales climbing 7% to $13.4 billion and adjusted earnings per share rising 11% to 91 cents. Global sales volume also grew 5% last quarter, while Coke raised its full-year earnings outlook.

Much of that momentum came from international markets, including India, China, and Mexico. Meanwhile, North American beverage volumes remained flat, with growth in Coca-Cola’s flagship soda lineup offset by declining demand for water, sports drinks, coffee, and tea. Shares remained largely flat today.

Something for every thirst

Coca-Cola’s latest results show how the century-old soda giant is adapting to a consumer base that’s increasingly conscious of both its spending and its health.

The penny-pinchers: With US inflation accelerating to 3.7% in September, household budgets are feeling the squeeze. Rather than slashing prices across the board, Coke is offering smaller, lower-priced packages to keep its drinks affordable while charging a premium for brands like smartwater and Core Power. It’s a tricky balancing act as rising packaging and distribution costs threaten to eat into profits—but the company pulled it off.

The sugar-skippers: Coke is making sure consumers can cut back on sugar without cutting out its brands. Coca-Cola Zero Sugar volumes surged 16% globally last quarter, more than three times the growth of the broader Coca-Cola lineup, while Diet Coke rose 6%. For those looking beyond soda altogether, bottled water volumes climbed 8%, while Coke’s fairlife dairy brand benefited from demand for high-protein beverages.

A safer bubble

For investors, Coke has long been a relatively defensive bet, offering steady demand and dividends even when the broader economy gets shaky. That appeal has become particularly relevant as investors reassess expensive tech stocks and look for companies with more predictable earnings.

It makes sense then that elsewhere in the old-school economy, another familiar name delivered good news: UPS beat Wall Street’s expectations, with revenue climbing 6.7%, and raised its full-year outlook as cost-cutting and efficiency improvements paid off. Shares of the delivery giant gained 5.87% today.

It’s another reminder that established businesses can still deliver growth in an uncertain economy. And as speculation grows that an AI bubble could burst, perhaps there’s comfort to be found in a fizz that’s stood the test of time.—SY