This product appeals to people that want more of an energy boost.
Today’s post is by Gayl Southard, Administrative Consultant at SafeSourcing, Inc.
Coca-Cola Chief Executive, James Quincey, has announced the launch of Coca-Cola Plus Coffee in 25 markets by the end of the year. This product appeals to people that want more of an energy boost than just a regular Coke. It also provides a new taste. Coca-Cola acquired the British coffee-shop chain, Costa, in the first quarter of 2019 for $5.1 billion. Plans to launch the first ready-to-drink Costa product is set for this spring. Costa serves roughly 3,800 cafes currently. There are 2,500 in the U.K. and an ever growing presence in China. Coca-Cola owns an 18.5% stake in Monster, the leading energy drink in the U.S. Monster said the launch of this product is in direct violation of an agreement struck in 2015. The companies are currently in arbitration.
Meanwhile, Coca-Cola Energy drinks will be launched in Europe. The company has diversified beyond soda into water, coffee, juice and other drinks. A reformulated Coca-Cola Zero Sugar grew by double digits this last quarter. The February launch of Orange Vanilla Coke was the first new flavor in a decade, increasing retail sales by 6%. Monster and Red Bull energy drinks are big in the U.S. and Europe. This market is expanding rapidly and the opportunity to to create drinks that blur the lines between energy drinks and cola is a great marketing opportunity.
PepsiCo Inc. is also trying new brands with three new flavors in the U.S. that contain real juice — berry, lime, and mango. New package designs have also been developed.
For more information on how SafeSourcing can help in your procurement efforts, or on our Risk Free trial program, please contact a SafeSourcing Customer Service Representative. We have an entire team ready to assist you today.
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Jennifer Maloney, WSJ, 4/24/2019
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