Global demand is lifting Coca-Cola’s sales, but its U.S. performance reveals how the company can gain market share without selling more drinks.

Coca-Cola reported a 5% increase in global beverage volume during the third quarter, driven by stronger demand in countries including India, China, Mexico and Brazil. North American volume remained flat, according to Sam Klebanov’s October 28 reporting for Morning Brew, despite increased sales of traditional Coke and Fairlife milk. Declines in water, coffee, juice and sports drinks offset those gains, while weaker restaurant demand weighed on the company’s U.S. business. Coca-Cola also cited a Topo Chico shortage and the timing of July Fourth purchases as contributing factors. Yet the company raised its earnings outlook and continued gaining U.S. market share from PepsiCo. As SSC previously reported, Coca-Cola recently secured KFC’s beverage contract, taking another major restaurant account from its longtime competitor. Distribution agreements give Coca-Cola access to customers at the point of purchase, allowing the company to strengthen its position even when overall consumption stalls.

Coca-Cola’s advantage also comes from adapting to changing preferences. Global volume for Coke Zero increased 16%, compared with 6% for Diet Coke and traditional Coke, suggesting that zero-sugar beverages are becoming a stronger source of growth. But Americans buying more Coke Zero does not necessarily mean they’re buying more beverages overall. Coca-Cola can capture a greater share of existing purchases through product selection, restaurant partnerships and retail distribution, while international markets provide the additional volume its U.S. business isn’t generating. That combination gives the company more ways to grow than competitors struggling to defend established accounts. Coca-Cola shares have risen approximately 30% this year, while PepsiCo shares have declined about 7%, according to Morning Brew. Stock performance reflects multiple factors, but the competitive direction is clear: Coca-Cola is strengthening its position in a market where consumers aren’t substantially increasing their purchases. If U.S. beverage consumption remains flat, the next phase of the cola rivalry will be decided increasingly by which company controls distribution and captures existing demand, rather than which one persuades Americans to drink more.