Is Coca-Cola's Marketing Push Driving Sales in Key Global Markets?

The Coca-Cola Company's KO recent results highlight how its stepped-up marketing efforts are paying off in major global markets. In second-quarter 2025, the company posted 5% organic revenue growth despite a 1% decline in unit case volume, supported by targeted brand activations and strong execution. Campaigns like the global relaunch of “Share a Coke” across more than 120 countries and local activations such as “Bring the Juice” in North America helped Coca-Cola gain value share for the 17th consecutive quarter. These efforts translated into EPS growth of 4% to $0.87, despite currency headwinds and higher taxes.

Regionally, Coca-Cola’s marketing push has been instrumental in driving sales resilience. In Europe, digital activations boosted Coke Zero Sugar, Sprite and Fuze Tea, while Latin America saw growth from refillables, premium single-serve packs and connected packaging. In India, food- and festival-linked marketing helped offset summer disruptions, and in Africa, bolder campaigns and cold-drink equipment expansion lifted sales momentum.

Coca-Cola’s strategy of balancing affordability with premiumization, supported by highly localized marketing, is proving to be effective in both developed and emerging markets. The company’s actions in Africa were fewer but bolder integrated campaigns and expanded cold drink equipment placement delivered strong momentum in Nigeria, Egypt and Morocco. Meanwhile, innovations like Sprite+Tea in the United States demonstrate Coca-Cola’s ability to blend marketing with product innovation, helping Sprite become the #3 sparkling soft drink in the United States.

Overall, Coca-Cola’s ability to tailor campaigns to local consumer needs while leveraging its global scale is a key driver of its revenue growth trajectory in 2025.

KO’s Rivals Drive Growth With New Products

In a fiercely competitive beverage market, PepsiCo Inc. PEP and Keurig Dr Pepper Inc. KDP are harnessing bold product innovations to capture evolving consumer tastes, protect margins and unlock new growth avenues.

PepsiCo's second-quarter 2025 results highlight how marketing is fueling global growth, with 3.6% organic revenue growth driven by double-digit gains in markets like Mexico, India, Brazil, Egypt and Pakistan. Localized campaigns, digital-first activations and sports partnerships boosted demand for Doritos, Lay’s, Gatorade and Pepsi Zero Sugar, while product innovation and premiumization strengthened relevance in developed markets. By blending global scale with local execution, PepsiCo is effectively driving sales momentum worldwide.

Keurig’s second-quarter 2025 performance reflects the role of marketing in sustaining sales momentum across key markets. The company posted 2.4% net sales growth, led by strong execution in its Packaged Beverages and Beverage Concentrates segments, where brand activations and promotional campaigns boosted demand for Dr Pepper, Canada Dry and Polar seltzers. Marketing also supported the expansion of newer innovations like Snapple Elements and C4 Energy, while digital engagement and partnerships reinforced household penetration. By combining innovation-driven launches with targeted campaigns across North America and select international markets, KDP is effectively leveraging marketing to strengthen brand equity and drive steady growth despite a challenging consumer environment.

The Zacks Rundown for Coca-Cola

KO’s shares have risen 12.6% year to date compared with the industry’s growth of 6.6%.

From a valuation standpoint, Coca-Cola trades at a forward price-to-earnings ratio of 22.38X, significantly higher than the industry’s 18.08X.

The Zacks Consensus Estimate for KO’s 2025 and 2026 earnings implies year-over-year growth of 3.1% and 8.4%, respectively. Earnings estimates for 2025 and 2026 have been unchanged in the past seven days.

Coca-Cola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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