Coca-Cola Co. predicted yesterday that non-carbonated drinks would overtake carbonated beverages in Europe within three years.

The company believes that teas, energy drinks and other non-carbonated brands would become the most profitable part of Coke's business in Europe, Eurasia and the Middle East.

In a presentation to a Morgan Stanley consumer conference in New York yesterday, Sandy Allan, president and CEO of Coke's European, Eurasian and Middle Eastern unit said: "In 2005, we will make the same money on non-carbs as on carbs and thereafter non-carbs will be greater."

As Q3 sales increased by 9% in Europe, as announced last month, sales of Powerade and other non-carbonated drinks grew by 45% in the region. Overall growth of non-carbonated drinks for the company in Q3 was also 9%.