Coca-Cola raised its annual sales and profit forecasts on Tuesday, as the beverage maker expects to benefit from price hikes and an advertising blitz, mainly in international markets where demand for its sodas and juices has been relatively strong.

Shares of Coca-Cola rose nearly 2% as the company also posted a surprise increase in second-quarter revenue.

The company has been trying out newer versions of its drinks such as Coke Spiced and Georgia Coffee to cater to varied tastes, while sponsoring music festivals and sporting events such as the Euro 2024 Football Championship and the Paris Olympics to attract younger consumers.

$22m invested in beverage sector by Coca-Cola

“With Summer Olympics coming every four years … you expect really bigger effect in the market … and a part of that is baked into (Coca-Cola’s) guidance,” said Christian Greiner, senior portfolio manager at F/m Investments, which owns shares in the company.

The company’s selling, general and administrative expenses jumped nearly 7% to $3.55 billion during the quarter as it doubled down on marketing campaigns in the run-up to the Paris Olympics while also promoting budget-friendly options such as 12-ounce slim cans globally.

“Fundamentally, Coca-Cola is a marketing machine … A continued rise in marketing spend suggests the group isn’t taking its foot off the pedal,” said Aarin Chiekrie, equity analyst at Hargreaves Lansdown.

PepsiCo, which missed second-quarter revenue estimates in July, is also launching new flavors of its snacking brands such as Lay’s and Doritos and offering products across different price tiers, as customers become more price-conscious.

Coca-Cola’s average selling price rose 9% in the second quarter, the Sprite maker said, while unit case volumes increased 2%.

However, volumes in the North American region fell by 1% as consumers turned cautious about spending and dining out.

Coca-Cola CEO James Quincey said that consumer sentiment was “pretty resilient” in North America although there were some signs of pressure in various segments across developed markets.

The company forecast fiscal 2024 organic sales to grow between 9% and 10%, compared with its previous expectation of a rise of 8% to 9%.

It expects annual adjusted profit to increase between 5% and 6%, compared with its prior forecast of a 4% to 5% rise.

Coca-Cola’s second-quarter net revenue rose 2.9% to $12.31 billion, beating LSEG estimates of $11.76 billion.

Its adjusted profit came in at 84 cents per share, topping expectations of 81 cents.