Coca-Cola has defied the squeeze on consumer spending in developed markets to post increased sales volumes in its North American heartland for the final three months of the year.

Volumes in the US were up 1% while emerging markets also did well, with sales up 10% in China and by 20% in India. Total sales for the fourth quarter grew 5% to $11bn (£6.95bn), while profits for the period stood at $1.65bn.

The soft drinks giant pledged to plough the cash raised by a new cost savings drive into further advertising for its key brands and to offset rising commodities costs. The company said it expected to save up to $650m a year by 2015 with increased efficiencies.

Chief executive Muhtar Kent said signs of recovery in the US economy were now visible.

“Compared to 12 months ago, there are very early indications that the [US] consumer is feeling a little better, with more mobility, travel and eating out,” he said. “That all translates into better business for us.”