What's going on?

On Tuesday, Coca-Cola reported revenues and profits in better shape than expected � but flexing its sales strength didn�t quite convince investors it had a six-pack of its own, as the stock fell by a flabby 2%.

What does this mean?

In the age-old battle between Coca-Cola and PepsiCo, Pepsi�s been winning for most of the last five years � thanks in part to its swiftness in spotting and adapting to the consumer trend of eating and drinking healthier foods and beverages.

But Coca-Cola�s been making a comeback � its shares have performed 12% better than Pepsi�s over the last year. In the first quarter of 2018, its marquee Coke brands grew by 4% globally compared to last year � and healthier products were at the heart of it! Specifically, Coke Zero Sugar improved on last year�s sales by more than 10% and Diet Coke�s funky new rebranding (including new flavors to bubble up millennials� fickle taste buds) helped it get back to its growing ways in North America.

Why should I care?

For you personally:�Coca-Cola�s sugar-free focus might be at a Goldilocks moment.

Several major countries (including the US and UK) have recently introduced a �sugar tax�, aimed at lowering the sugar content in your drinks and tackling obesity (since we�re all stretching those waistbands). Given its recent investments in drinks companies like Honest Tea, the market is now playing into Coke�s increasingly healthy hands � helping the company, not your waistline, to grow. The result may be a healthier bottom line for all!

For markets:�Small brands are having a big impact in consumer goods.

The recent flurry of large consumer goods companies acquiring smaller businesses illustrates the challenges of a low-growth environment. And it�s not just affecting product prices, but share prices too: Coke�s shares are almost flat over the last five years, but big acquirers like Unilever (which bought Dollar Shave Club in 2016) have been rewarded by their shareholders � its stock is up over 40% in the same period.