Posted by Dale Buss on August 15, 2014 03:07 PM
Coca-Cola and Monster Beverage seems to be a match made in beverage heaven—or is it? Taking a 17-percent stake in America's fastest-growing energy drink brand for $2.1 billon may prove far from a panacea for troubled Coke in part because energy drink sales are decelerating too.
For now, everyone from Coke CEO Muhtar Kent and Monster CEO Rodney Sacks to industry analysts seem giddy about the tie-up. Coca-Cola will give Monster its tired energy brands in the deal, including NOS, Full Throttle, Burn, Mother, Play and Power Play and Relentless, while Monster will turn over its non-energy brand products—Hansen’s Natural Sodas, Peace Tea, Hubert’s Lemonade and Hansen’s Juice Products—to Coke, which will help accelerate distribution of Monster brands in the US and abroad, especially China. Coke has carried Monster in North America for six years already.
Monster's sales increased by 9 percent last year, and 80 percent of its volume is in the US. Overall energy-drink sales increased by more than 4 percent for the industry last year, Beverage Digest said. Meanwhile, Coke's overall soft-drink sales fell 3 percent last year, and Diet Coke especially has gone into an unexpected swoon on the heels of growing consumer concern over health factors like the use of aspartame.Continue reading...
sip on this
Posted by Dale Buss on August 8, 2014 06:22 PM
The moment of truth for beverage retailers has gotten more interesting in the UK as Coca-Cola Enterprises has rolled out a "virtual assistant" to provide a last attempt at persuasion.
Projected onto a life-size, thin screen by Tensator, Coke's virtual assistant "Isabelle" tells retailers about the success of the brand's can-personalization marketing campaign, Share A Coke, suggests how retailers can maximize shopper interest in their stores and plays a new Share a Coke TV advertisement.
The digital signage, which uses innovative HD projection and audio-visual technology, is being used at Dhamecha cash-and-carry depots in London.
Isabelle "is a creative and fun way to reach our customers with the campaign and is a piece of genuine digital innovation that we're excited to bring to the market," Simon Miles, digital director at Coca-Cola Enterprises, said in a statement.Continue reading...
sip on this
Posted by Dale Buss on July 31, 2014 04:04 PM
Things aren't going well for Coca-Cola these days. While the company still returned $47 billion in profits last year, that amount was down by more than $1 billion from 2012.
That may not seem like much of a problem, but as newly chronicled in places ranging from the cover of the new issue of Bloomberg Businessweek to a prominent story in this morning’s Wall Street Journal, minting profits—and sales—for Coca-Cola no longer is as simple as filling another bottle or can. The company and, especially, the brand are being hit with unprecedented resistance these days that is so stiff, some worry it ultimately could be existential for Coca-Cola.
Consumption of soda globally fell in the first quarter for the first time since 1999, though they rebounded in the second quarter; and the consumption slide continues in the US as the brand remains under assault from anti-obesity activists and politicians for its sugar and calorie content, while Diet Coke increasingly is suffering attrition as well because of concerns about aspartame. Meanwhile, new beverage startups in the flavored water and tea categories in which Coke has invested aren’t growing quickly enough to offset the continued losses in soda consumption.Continue reading...
Posted by Dale Buss on July 31, 2014 09:43 AM
Bloomberg Businessweek's new cover story hits Coca-Cola in the stomach over obesity.
Target hires PepsiCo veteran Brian Cornell as new CEO.
Apple reportedly plans to cut 200 jobs at Beats as $3B acquisition gets EU approval.
Budweiser features Jay Z and Rihanna in new campaign as MTV lands Beyonce solo for VMAs.
Whole Foods Markets lowers sales forecast and plans major marketing push to reverse "negative narrative."
MORE BRAND NEWS
AMC, the Mad Men/Breaking Bad network, reportedly eyes stake in BBC America.
American Express pursues “first-ever” experiences for customers.
BlackBerry's new COO discusses his goals with WSJ.
BMW kicks the tires on Medium as its first advertiser.
Bud and Miller struggle to take on craft beer.
Chevrolet increases focus on China.Continue reading...
Posted by Dale Buss on July 25, 2014 09:17 AM
McDonald’s suspends sales of chicken nuggets in Hong Kong but sticks with Chinese meat supplier, as company gives itself 18 months to rebrand.
Amazon reports another loss amid sales growth as CEO Bezos alarms investors with spending pace and Fire Phone hits stores.
Coca-Cola topped World Cup brand sponsors in new survey as it faces boycotts over Gaza conflict.
BSkyB creates European TV powerhouse by buying affiliated assets from 21st Century Fox, which would give Murdoch more cash for Time Warner bid.
Zillow is in advanced talks to buy rival Trulia.
MORE BRAND NEWS
Air Algerie plane crashed in Mali with 116 aboard and no survivors, as world faces deadliest crash year since 2005.
Bentley may add fifth model with SUV launch in two years.
CKE brings back Paris Hilton to tout for Carl’s Jr. and Hardee’s.
Comcast steps up its game on internet speeds.
CrossFit builds a passion brand.
Danone looks for second-half improvement coming out of massive food scare in Asia.
Dell takes social out of the silo.
Dunkin’ Donuts downgrades outlook after poor second quarter.
Facebook toys with idea of integrating Uber into Messenger.Continue reading...
sip on this
Posted by Dale Buss on June 11, 2014 03:43 PM
Coca-Cola’s global efforts to preserve its sales—and the essential nature of its brand and products—is beginning a crucial new test in the UK as the company launches both its new reduced-sugar Coca-Cola Life beverage and introduces a new anti-obesity campaign there simultaneously.
With 36 percent fewer calories and 37 percent less sugar than real cola, Coca-Cola Life will hit UK shelves in September, having passed its marketing launch in Argentina and Chile in 2013. Its upcoming launch in the UK will mark Life’s arrival in Europe (and the first new Coke product there since the launch of Coke Zero in 2006); no plans have been announced to roll it out in the US yet.
One reason Coke presumably started with Life in South America is that the drink is sweetened partially with stevia, a natural plant-derived substance that is native to the continent. PepsiCo has pooh-poohed the possibilities that global consumers will embrace stevia in colas because of aftertaste concerns, while still experimenting with the sweetener.Continue reading...
Posted by Dale Buss on June 3, 2014 03:42 PM
While anti-soft drink activists are preparing to dance on soda’s grave at the upcoming National Soda Summit this week, the industry’s biggest players, Coca-Cola and PepsiCo, continue to fight furiously.
No less a personage than PepsiCo CEO Indra Nooyi has recently admitted that the category looks moribund, noting at a recent industry conference that company executives anticipated the decline of the carbonated soft drink market three years ago. Of course that was also the time when Nooyi was accused by shareholders of allowing the Pepsi brand to slump voluntarily.
“It may never be the high levels of consumption [of soft drinks] that we had when we were young,” Nooyi said. “The new consumers have too many choices that they are playing around with.”
However, Nooyi said, “I actually think there is a once-in-a-lifetime opportunity to bring the consumer back” to the category by providing lower sugar levels and avoiding artificial sweeteners. That is why Pepsi has worked hard to bring alternative sweeteners to its drinks even though one of the first big possibilities, stevia, doesn’t work well, in Nooyi's opinion.Continue reading...
Posted by Dale Buss on February 19, 2014 09:24 AM
Kellogg's struggles to stay relevant as cereal sales fall.
Netflix sees video slowdown in conflict with broadband providers.
Target CEO is working to regain shoppers' trust.
Capital One causes backlash with policy about home visits.
Cinnabon thrives on licensing and co-branding.
Coke is warned over sub-standard Sprite in Nigeria.
Facebook copes with attention drift by users.
GM plans shift toward aluminum pickup trucks too, report says.Continue reading...