Coca-Cola today raised its annual organic sales forecast, signalling strong global demand for the brand’s popular drinks.
The updated forecast sent the company’s shares up 2% in premarket trading.
The drinks giant is seeing a rise in demand particularly in its US market’s away-from-home category.
As consumers in the US are increasingly dining out and attending the cinema they are willing to spend more on Coca-Cola’s higher-priced juices and soft drinks.
Both Coca-Cola and PepsiCo are also seeing buoyant demand for their products in international markets such as Europe and Asia.
The relaunch of Georgia Coffee, Sprite reformulations and a foray into newer markets have helped the brand bump up sales.
Coca-Cola’s average selling prices rose 13% in the first quarter according to the company, while unit case volumes increased by 1%.
Drinks and confectionery companies have been raising prices in an attempt to protect margins in the face of rising material production costs.
Although PepsiCo and now Coca-Cola have reported increased profits with price hikes, Nestlé reported last week that it missed sales estimates due to the hikes.
Coca-Cola expects fiscal 2024 organic sales to grow between 8% and 9%.
This exceeds previous estimates of a 6% to 7% rise.
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