Coca-Cola Co. (COKE.O) sold fewer drinks in the Americas in the fourth quarter despite a boost from zero-calorie offerings as rival PepsiCo Inc. (PEP.O) ramps up marketing spending. Shares slipped in early trading.

Unit case volume fell 1 percent in North America and 2 per cent in Latin America in the quarter ended Dec. 31. Still, Coke’s adjusted earnings per share matched what analysts had been expecting.

Key Insights

-While the beverage giant has made progress with its Diet Coke and Coke Zero Sugar brands, the results show that a broader decline in soda consumption may still be weighing down performance. Coke, like its rivals in the beverage business, is also facing higher transportation costs.

-Chief Executive Officer James Quincey has been banking on a pivot away from sugary soda at the world’s largest beverage company. He’s now under pressure to show his company’s big bet on U.K. coffee chain Costa can drive growth. Investors will be listening on the call this morning for more details about the coffee strategy.

-Pepsi has boosted its marketing spending as the longtime rivals try to grab market share amid sliding soda consumption. The beverage landscape has also gotten more and more competitive, with sparkling water, bottled coffee and other drinks resonating with customers.

Market Reaction

-Coke shares fell as much as 3 per cent as of 7:11 a.m. in New York. The stock had gained 5 per cent this year through Wednesday’s close, about half of the S&P 500’s rise.