Coke sales up in first quarter of 2012

Coca-Cola, the nation's leading soft drink, is showing signs its North American sales may be stabilizing after several shaky years.

For the second consecutive quarter, U.S. sales volume of Atlanta-based company's flagship cola brand was up, growing under 1 percent for the period ending March 30, the company said in its earnings report Tuesday. The brand also grew 1 percent in the fourth quarter of last year compared to the same time the year before.

Up until then, the company had not seen a positive quarter for the cola since the second quarter of 2010.

Getting regular Coke's numbers up is critical to the Atlanta-based company. Overall U.S. sales of carbonated soft drinks, once the cash cows of beverages, fell industrywide in 2011 for the seventh year in a row, according to a recent report from Beverage Digest, an industry publication.

Consumers have been leaving soft drinks for energy drinks, water and teas, Beverage Digest said.

Coke Chief Executive Office Muhtar Kent said on Tuesday that while regular Coke's numbers were good, he's not ready to declare victory. He said the improvements are part of a long-term strategy still in its infancy.

"We are just beginning the journey in the U.S.," he said, adding that one or two positive quarters does not a trend make.

John Sicher, editor and publisher of Beverage Digest, said Coke's recent advertising, packaging and pricing strategies are helping the company move in the right direction.

"Growing carbonated soft drinks on a sustained basis in North America is going to be a challenge for Coke and all the major companies," he said. "However, I think Coke is firing on all cylinders now both on marketing and execution, so this quarter's results is not a surprise."

Overall sales volume for North America posted positive gains in the first quarter of 2012, including a 9 percent increase for Coke Zero and a 4 percent hike for Fanta.

Coke had earnings of 89 cents per share in the quarter, compared to 82 cents per share the same period last year. The company posted revenue of $11.14 billion for the first quarter of 2012, up from $10.55 billion a year ago.

However, North America operating income declined 3 percent for the quarter compared to a year ago. Coke blamed the results on higher commodity prices and a shorter quarter (by one day).