Emerging markets fizzing for Coke

Having a global brand helps Coke through difficult times

Strong sales growth in China and Russia as well as growing demand for water and juice drinks have boosted profits at Coca-Cola.

The US firm saw third-quarter pre-tax profits rise 16% to $2.1bn (£1.03bn) while revenues rose 19% to $7.7bn.

Growing preference for non-fizzy drinks such as Powerade and Minute Maid lifted sales in established markets but poor weather saw sales fall 2% in Europe.

But elsewhere, sales rose more than 10% in China, Russia, India and Brazil.

Brand strength

Demand for Coke and its other drinks in emerging economies is counteracting sluggish growth in North America, where sales grew by just 1% over the period.

In US and Europe, sales have been dented by concerns about obesity levels and the amount of sugar in soft drinks popular with children.

This was reflected by the fact growth in sales of non-carbonated drinks outstripped those of their fizzy counterparts, rising 14% year-on-year compared with 6% sales growth in fizzy drinks.

Foreign sales, in general, were boosted by the weak US dollar.

Coca-Cola acknowledged that its growth was being driven by international markets but added that it had seen some "signs of progress" in its North American business.

"We are demonstrating our ability to create shareowner value from the combined strengths of our brands and our global reach," said chief executive Neville Isdell.