Oct. 17 (Bloomberg) -- Coca-Cola Co., the world's largest soft-drink maker, posted third-quarter profit that rose more than analysts estimated by selling more Vitaminwater to Americans and Coca-Cola Zero soda in Asia and Latin America.

Net income increased 13 percent to $1.65 billion, or 71 cents a share, beating the average estimate of analysts by 3 cents. Sales jumped 19 percent to $7.69 billion, helped by the falling U.S. dollar, the Atlanta-based company said today.

Chief Executive Officer Neville Isdell's focus on new drinks and rising demand in China and Brazil may result in the biggest increase in annual revenue in 13 years. To overcome falling U.S. soda sales, the company bought Vitaminwater flavored water in June and promoted no-calorie Coca-Cola Zero in Japan and Mexico.

``Management is executing and delivering in all these key markets,'' said Mike Morcos, who helps manage $1.2 billion including Coca-Cola shares at Old Second Wealth Management in Aurora, Illinois. ``I'm getting more bullish on Coke.''

Coca-Cola rose $1.33, or 2.3 percent, to $59.09 at 4:01 p.m. in New York Stock Exchange composite trading. It was the biggest increase in two months. The shares are at the highest in six years after climbing 20 percent this year through yesterday, outpacing a 15 percent gain by PepsiCo.

Twelve analysts surveyed by Bloomberg estimated an average profit of 68 cents a share, excluding 3 cents of costs for bottler restructurings and 3 cents of gains from the sale of a stake in a bottler. Eight analysts projected revenue of $7.29 billion. Year-ago profit was $1.46 billion, or 62 cents.

Dollar's Declines

The dollar's declines against the euro and yen added 4 percentage points to profit growth, the company said in a statement. The yen rose 7.3 percent against the dollar during the third quarter, and the euro increased 5.4 percent, data compiled by Bloomberg show. Coca-Cola gets 70 percent of sales outside North America.

Worldwide shipments rose 6 percent in the third quarter, exceeding the company's long-term target for the third straight quarter. Volume rose at least 10 percent in China, Russia, India, Brazil and the Philippines. Shipments of noncarbonated drinks jumped 14 percent for the quarter, while soda rose 4 percent.

``This demonstrates more consistency across key markets,'' said Mark Swartzberg, an analyst with Stifel Nicolaus & Co. He rates the shares ``buy.''

Coca-Cola promoted Sprite, Fanta soda and bottled tea in Japan to boost volume sales by 4 percent, the third straight quarterly gain. The company also introduced no-calorie Coca-Cola Zero soda in Japan this year.

Japan shipments fell last year after a Georgia coffee advertising campaign aimed at young consumers alienated its core middle-aged drinkers.

Latin America

The company promoted Coca-Cola Zero and tea under its Matte Leao brand in Brazil and sold more regular Coca-Cola in Mexico, lifting shipments in Latin America. Zero is in more than 50 countries now, and will be expanded to about 10 more countries by the end of 2007, the company said.

The soda maker is ``focusing on markets where the real growth is,'' said Jason Pride, director of research at Haverford Investments. The Radnor, Pennsylvania-based firm manages $6 billion including Coca-Cola shares.

In North America, Coca-Cola's largest unit, the company sold more Dasani bottled water and Powerade sports drinks, overcoming a decline in soda to post a 1 percent gain in sales measured by volume. It was the first time in five quarters that North America volume rose.

The purchase of Energy Brand Inc.'s Glaceau, the maker of Vitaminwater, added about 2 percentage points to North American volume growth, the company said. Without it, volume would have dropped 1 percent.

North American Improvement

There will be ``sequential'' improvement in North America in the fourth quarter, President Muhtar Kent said today on a conference call with investors and analysts.

Coca-Cola depends on soda for 80 percent of revenue, compared with less than 20 percent for PepsiCo.

To reduce its reliance on soda, Coca-Cola in June paid $4.1 billion to buy Glaceau, whose Vitaminwater drinks contain vitamins and antioxidants. Glaceau's pitchmen include rapper 50 Cent and basketball player Shaquille O'Neal of the Miami Heat.

Coca-Cola's long-term target is to increase shipments worldwide by 3 percent to 4 percent a year, and to boost earnings by a ``high single digit.'' The company doesn't give specific quarterly forecasts.

To contact the reporter on this story: Mary Jane Credeur in Atlanta at mcredeur@bloomberg.net.

Last Updated: October 17, 2007 16:18 EDT