It won’t be the first time Coca-Cola steps into the coffee business, but the beverage giant intends on pushing it big there, this year. By this year end, the company will introduce Coca-Cola Coffee to at least 25 markets across the globe.
CEO James Quincey says Coke Coffee is designed for specific occasions and channels such as a mid-day energy drop at work. This blend of Coke and coffee has just a little less caffeine compared to a regular coffee, but a little more than that can of soda. This move aims to counter the recent shift from soda to options with less sugar such as bottled water or Coca-Cola Zero Sugar. The Coca-Cola Coffee will contain less sugar when compared to a Coke.
This drink will now let the company in to a trend that works: coffee. Mintel records a 31% growth in 2016-17 for instant coffee, making it the quickest growing segment in the category of coffee. In the U.S., cold coffee brews also grew 10% annually from 2013-17. European customers are not as experimental and appreciate the trend much less.
Until now, Coke focused its coffee business largely in Japan, vending machine canned coffee has existed for decades. Georgia Coffee, the brand has exceeded $1 billion in turnover and reached other countries in Asia.
Coke’s first alliance with coffee was in 2006, when the company introduced Coca-Cola Blak. The product ‘blacked out’ in 2 years. 11 years on, in Australia, Coca-Cola introduced Coca-Cola Plus Coffee and brought the drink to Asia for further tests to intensify the aroma of the coffee.
Following the purchase of the British brand, Coke plans to sell instant Costa products across European markets from April.
On Tuesday, the company declared profits higher than the estimates of Wall Street, which injected renewed life into Coke’s stock with a 2% hike. Even revenues increased by 5% going up to $8.02 billion, which was beyond the expected $7.88 billion.
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