(Reuters) -Coca-Cola reported a smaller-than-expected drop in first-quarter revenue on Tuesday, benefiting from price hikes and strong demand for its sodas, juices and milk offering Fairlife.

Shares of the Sprite and Fanta maker rose 1% in premarket trading.

Coca-Cola's price hikes in highly inflationary markets such as Argentina and Latin America, coupled with customers still choosing to spend on its slightly higher-priced products, have helped boost sales growth.

Consumer goods companies such as PepsiCo and Procter & Gamble have noted a general slowdown in demand, but Coca-Cola has enjoyed growth for its sparkling drinks and Fairlife milk in the North American market.

Coca-Cola's average selling prices rose 5% in the first quarter, the company said, while unit case volumes increased 2%.

The company's quarterly revenue fell to $11.22 billion from $11.23 billion a year earlier. Analysts on an average expected a 0.84% fall to $11.14 billion, according to data compiled by LSEG.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Devika Syamnath)