Coca-Cola's stock is bucking consumer weakness as it heads toward a record high

Volume growth for Mr. Pibb topped 20% in the second quarter.

As the biggest beverage makers battle for relevance among budget-conscious consumers, Coca-Cola is seeing early signs of a payoff from new drinks billed as beverage "innovation."

Management at the soft-drink giant said Tuesday that a new version of Mr. Pibb, which has 30% more caffeine and extra cherry flavoring, saw more than 20% volume growth in the second quarter. Volume is a gauge of the amount of soda sold.

The resurrection of that soda line also includes a zero-sugar version. Mr. Pibb was launched in 1972 to compete with Dr Pepper and was renamed Pibb Xtra in 2001. Coca-Cola announced the revival of the soda under the original Mr. Pibb name and the new offerings in October, with a nationwide rollout taking place this year.

Executives on Tuesday further noted that Sprite + Tea had landed in China after showing success in the U.S. They added that Bodyarmor Fit - a new sparkling sports drink with zero sugar that combines electrolytes and caffeine - has helped expand Coca-Cola's "functional" offerings.

Those creations, they said, helped drive global volumes 5% higher overall during the period. The company's second-quarter results on Tuesday broadly topped Wall Street's estimates, and management nudged its financial outlook higher for the year.

Coca-Cola shares jumped 4.8% on Tuesday and were trading at around $88, tracking toward a record high. The stock is up 27.5% so far this year.

During the company's quarterly earnings call on Tuesday, CEO Henrique Braun said the new Mr. Pibb helped it "stay relevant," while Sprite + Tea helped drive momentum for Sprite overall.

More broadly, management said minicans and things like variety packs helped make products more affordable and accessible to consumers.

The food-and-beverage industry has been cranking out new products to cut through consumer malaise and compete with retailers' store-brand products, which are cheaper but at times just as innovative. As lower-income consumers face more difficulty following years of price increases, executives at Albertsons $(ACI)$, during the grocery chain's earnings call last week, said they were "seeing a shift to private label."

This year, companies like PepsiCo $(PEP)$ and Kraft Heinz $(KHC)$ have highlighted creations like fiber drinks and snacks, as well as products geared toward "functional hydration" and the nation's emerging obsession with protein. Interest in wellness and uptake of GLP-1 drugs have driven those trends.

Coca-Cola on Tuesday also said that its marketing efforts during the World Cup translated into more consumer data. And following a cyberattack on its Fairlife milk segment, the company said most production had resumed at its four U.S. facilities, with availability on store shelves "largely unimpacted."

Coca-Cola on Tuesday raised its adjusted earnings-per-share outlook for this year to an increase of 9% to 10%, up from earlier expectations for an 8% to 9% gain. The company said it expected a roughly 5% increase in organic revenues, when factoring out things like currency fluctuations. That forecast was a bit more optimistic than a prior forecast for 4% to 5% growth.

During the second quarter, Coca-Cola's sales rose 7% year over year to $13.4 billion, above FactSet analyst estimates for $13.17 billion. The company reported adjusted earnings per share of 97 cents, up 11% and topping estimates for 93 cents.

-Bill Peters