Coca-Cola's new CEO Henrique Braun has identified a sweet spot for budget-conscious shoppers: 1.25 liters. The executive, who took the helm on March 31, is betting that smaller beverage sizes and mini cans will resonate with consumers watching their spending. American shoppers are growing increasingly cautious as economic uncertainty mounts.

The University of Michigan's consumer-sentiment index has dropped to its lowest level in the survey's history, weighed down by concerns over the Iran war, persistent inflation and a weakening job market. For Braun, this compounds the longer-term challenge of keeping Coke relevant with younger generations who are drinking less soda overall.

Despite the gloomy consumer mood, Coca-Cola reported stronger-than-expected first-quarter results. The company posted a 12% rise in sales and higher profit, beating analyst estimates. Braun's focus on affordable pricing and smaller formats appears to be resonating with today's penny-pinching shoppers.