Keurig Dr Pepper reported a rise in second-quarter revenue and profit on Thursday buoyed by higher prices and strong demand for its soft drinks in the US and international markets.
The news comes as Dr Pepper and rival Coca-Cola have seen steady sales of soft drinks despite price hikes to offset high production costs.
Products from the two brands are typically categorised as “affordable luxuries.”
Brands have been losing market share to cheaper alternatives, generally private label products, as customers balk at high prices.
Nestlé and Unilever both reportedly suffered lower volumes as customers made the move to private label, but Coca-Cola retained strong demand.
Keurig Dr Pepper launched a variety of new drinks in the quarter, such as Schweppes mocktails and Strawberries & Cream sodas internationally to drive demand and boost sales growth.
Following the publication of results, shares for the company were up 2.3% at $33.52 premarket trading.
Keurig Dr Pepper’s average selling prices rose 1.6% in the second quarter ending 30 June, and sales volumes increased by 1.8%.
The company’s adjusted profit rose 7.1% to 45 cents per share, in line with estimates from the London Stock Exchange Group.
Net sales rose 3.5% to $3.92 billion, meeting Wall Street analyst expectations.
The company reaffirmed its forecast of a mid-single-digit percentage rise in fiscal net sales and high-single-digit percentage growth in adjusted profit.
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