Beverage companies, pinched by a year of stiff declines in U.S. soda sales, may be headed toward a little relief in North America.

Early numbers that track store sales and other data suggest the industry may be done with the worst declines in the U.S. While soda pop volumes aren't poised for any dramatic rebound, the large beverage companies could begin to see some sequential improvement from last year in the region.

Some brand new marketing campaigns from giants PepsiCo Inc. (PEP) and Coca-Cola Co. (KO) seem to be helping, as lower gasoline prices are aiding soft drink sales in convenience stores.

"Things are not going to be as bad as they were in the fourth quarter in 2008. Volumes will be better in the first quarter than the fourth," says JPMorgan analyst John Faucher.

Coke and Pepsi are set to report quarterly earnings next week and the companies' comments on North America will be closely watched. Any better-than-expected volume numbers "will be perceived very favorably," says Esther Kwon, an analyst at Standard & Poor's.

To be sure, the two multinationals face a host of other pressures, such as the fluctuations in foreign currencies that have pressured the companies' revenue in recent quarters. Also, emerging markets aren't growing at the breakneck speed of previous years. Higher priced drinks such as ready-to-drink teas are likely to continue to be hurt by consumers trading down. That said, fewer pressures in the key U.S. market would be a big positive for two beverage makers. (Unlike Coke, Pepsi also sells snacks in the U.S. and around the world).

Volumes in the U.S. carbonated soft drink market fell 3% in 2008, and both Coca-Cola and PepsiCo lost market share, according to trade publication Beverage Digest. But more recently, Dr Pepper Snapple Group Inc. (DPS) - which sells both fizzy drinks and ready-to-drink teas - offered a glimmer of hope by reporting better-than-expected results. The company, which is smaller than Coke or Pepsi, said fourth-quarter soda volume fell less than 1% as consumers reached for cheaper drinks and shunned more expensive ones such as Snapple.

The U.S. carbonated soft drink market has seen volume drops in recent years as many consumers reached for non-carbonated drinks. The recession sharpened those declines, pushing both Coke and Pepsi to invest in reviving the soda category, which they both view as key for the industry.

Coke launched a fresh marketing campaign it calls "Open Happiness" and Pepsi has sought to create more buzz around its brands through new packaging and branding for several products. The two beverage giants have also been experimenting with smaller-size bottles and packs at more attractive prices, such as Coke's efforts to widen distribution of a new 16-ounce bottle priced at 99 cents.

"I'm seeing a lot of commercials from Coke and Pepsi that are exciting and fun," says George Kalil, president of privately held Kalil Bottling, in Tucson, Ariz., whose company sells a mix of beverage brands including Coke's VitaminWater and Snapple. "It helps the whole industry. They may get the biggest benefit, [but] we all get a piece of the action." JP Morgan's Faucher, for instance, has recently been bullish on Coke bottler Coca-Cola Enterprises Inc. (CCE).

The stabilization in North America may not be sufficient to completely override other pressures the industry faces. Both Coke and Pepsi have been fairly guarded in their forecasts for the year, acknowledging the challenges of the global slump in spending. JPMorgan's Faucher says Wall Street's consensus earnings expectations for Coke and Pepsi for this year may still be too high given outside factors such as currency fluctuations. UBS says volumes could be weak for Coke in Latin America and Russia.

Lower commodity costs will be a positive, but S&P's Kwon expects most of those benefits to show up mainly in the second half of the year.

-By Anjali Cordeiro; Dow Jones Newswires; 201-938-2408; anjali.cordeiro@dowjones.com