Coca-Cola sees profit, but Diet Coke sales fizzle

Coca-Cola reported a quarterly profit Wednesday that beat Wall Street expectations as the world's largest beverage maker raised prices to offset slower growth. The maker of Sprite, Dasani, Powerade and other drinks said its global volume rose 1 per cent, reflecting gains in both soda and non-carbonated drinks. In its flagship North America market, overall volume was flat. The company sold 1 per cent less soda, reflecting the ongoing move away from traditional carbonated drinks. One recent drag on soda has been the fading popularity of Diet Coke.The drink declined 5 per cent in the region, while Coke Zero, a newer diet soda, declined 1 per cent, said Kathy Waller, Coke's chief financial officer. "We're doing a lot of work in North America to understand what's going on,'' Waller said of the decline of diet sodas. The overall soda decline in North America was offset by a 2 per cent increase in noncarbonated drinks, such as bottled teas. Higher pricing helped drive up revenue. Coca-Cola Co. says it is focusing less on volume growth and instead focusing on driving up revenue by mixing up the type of packages it sells. For instance, the Atlanta-based company has been pushing its mini-cans and glass bottles more aggressively, which are positioned as premium offerings and tend to fetch higher prices per ounce. Waller said the company is continuing to roll out the mini-cans more broadly in the U.S. The company has also said it would work on slashing costs to improve its financial performance amid slowing growth. CEO Muhtar Kent has called 2015 a ``transition year'' for the company. For the three months ended April 3, Coke said it earned $1.56 billion, or 35 cents per share. Not including one-time items, it earned 48 cents per share. That was more than the 43 cents per share analysts expected, according to Zacks Investment Research. Total revenue was $10.71 billion, which also came in above the $10.66 billion analysts expected. Shares of Coke rose 3 per cent to $42.10.