What's going on?

Coca-Cola is done playing coy about what a catch it is: the drinks giant posted quarterly earnings that came in ahead of expectations on Wednesday.

What does this mean?

Wherever there�s a social hotspot � a restaurant, a theater, a stadium � there�s sure to be a tap with �Coca-Cola� emblazoned on it. So with plenty of spots getting well and truly hot again last quarter, the drinks giant�s organic revenue growth � excluding the effects of currency swings and acquisitions � climbed an expectation-busting 37% compared to the same time last year. That strong growth means Coke�s quarterly revenue has now overtaken pre-pandemic levels, and its outlook for the rest of the year looks like it�ll continue that trend: the drinks maker is now expecting to grow organic revenue and profit by up to 14% this year � up from roughly 9% and 10% respectively.

Why should I care?

For markets: Coke�s prices are right.
Investors sent Coke�s shares up on Wednesday, but the company�s better-than-expected results mightn�t be the only reason investors have taken a fancy to the stock. With the specter of inflation looming, they�ve been on the lookout for companies that can easily offset the rising costs of raw materials by nudging up their own product prices. And since �consumer staples� sell things that shoppers tend to buy no matter what, they fit the bill exactly. Case in point: Coke said on Wednesday that its prices will have risen as much as 3% between 2019 and 2021.

Zooming out: Pepsi had a good run.
Arch-rival Pepsi reported better-than-expected results of its own last week, but its 13% organic revenue growth was almost two-thirds lower than Coke�s (tweet this). The company, after all, has a big snacks business and sells more of its drinks in grocery stores than Coke does. Both of those benefit much more from a world in limbo, as well as from the crushing existential despair that might push someone to drink a Pepsi in the first place.