Retail News CRM

Tag: coca-cola

  • Visy Produces First Glass Bottles at Yatala Recycling Plant

    Visy Produces First Glass Bottles at Yatala Recycling Plant

    Packaging company Visy has produced the first glass bottles at its new glass recycling and manufacturing facility in Yatala, Queensland, four years after construction began.

    Once fully operational, the plant will manufacture up to 1 billion glass bottles and jars annually, incorporating an average of 70 per cent recycled content.

    Visy CEO Mark De Wit noted the milestone following the start of commissioning of the site’s first of two oxygen-fuelled furnaces, which are designed to consume less energy than traditional facilities.

    Cutting Energy on the Furnace Line

    Engineers at the south Brisbane site started operations using the first of two oxygen-fuelled furnaces. Visy intends to bring the second furnace online as commissioning advances across the site.

    Conventional furnaces burn fuel using ambient air, which introduces unwanted atmospheric nitrogen into the heating chamber. Visy instead feeds concentrated oxygen into the combustion zone to trim nitrogen volumes and raise thermal efficiency.

    Incoming cullet undergoes pre-heating before entering the main melt zone. Lifting recycled glass temperatures ahead of melting cuts the thermal lift required from the burners, driving lower fuel use per tonne of finished glass.

    Clustering Supply Beside Big Brewers

    Putting glass production directly into Yatala links sorting, melting, forming, and packing inside an existing manufacturing cluster. The new site stands next to Visy’s established cardboard box factory and beverage can plant.

    Logistics dictate glass economics. The Yatala ovens sit roughly two kilometres from Asahi Beverages’ Yatala brewery and about 30 minutes by road from Lion’s XXXX brewery in Milton, removing cross-state container freight from local supply chains.

    The capital expenditure relies on long-term supply agreements. Asahi Beverages holds a foundational partnership on the site, alongside contracted volume commitments with Lion, Bundaberg, and Coca-Cola.

    Local Cullet and Container Scheme Feedstock

    Recycled container supply underpins the commercial rationale. The facility is engineered to process up to 200,000 tonnes of recovered Queensland glass each year, drawing heavily from regional container deposit collection points.

    For beverage manufacturers across Asia-Pacific, packaging remains a severe emissions liability. Securing commercial volumes with 70 percent recycled cullet gives regional bottlers an immediate mechanism to strip scope 3 emissions without changing primary bottle designs.

    The operational risk now centres on cullet purity and feedstock continuity. Contaminated recovered glass creates production defects and furnace downtime, forcing Visy to maintain tight control over sorting operations as intake scales toward the 200,000-tonne ceiling.

    Four Years of Build Lead to Commercial Output

    Construction crews broke ground on the Yatala development nearly four years ago, supporting roughly 600 construction roles during the installation of the heavy furnaces and forming machinery.

    The manufacturing complex will sustain approximately 200 permanent operational jobs once both production lines run at capacity, according to company projections.

    Visy now faces the commissioning of the second oxygen-fuelled furnace, which will lift production to the full 1-billion-unit target.

  • Nongfu Spring Brand Value Surges 38% to US$15.3 Billion

    Nongfu Spring Brand Value Surges 38% to US$15.3 Billion

    China’s Nongfu Spring expanded its brand value by 38 per cent to US$15.3bn in 2026, according to the Top 50 Non-Alcoholic Drinks report released this week by Brand Finance.

    The domestic drinks producer added US$4.24bn in value over the past year while US rival Pepsi shed US$5.74bn, falling to US$16.8bn from US$22.5bn in 2025.

    Coca-Cola held onto the top spot at US$46.1bn despite a US$243mn decline from its 2025 valuation. Nongfu Spring climbed from US$11.1bn in 2025, driven by strong demand across bottled water, ready-to-drink tea, and no-sugar drinks.

    Beyond absolute dollar value, the Chinese bottler surpassed Coca-Cola on underlying brand health metrics. Nongfu Spring recorded a Brand Strength Index score of 89.8 out of 100, earning an AAA+ rating. It stands as the only brand among the world’s top ten non-alcoholic beverage makers to retain that top-tier grade. Coca-Cola slipped from AAA+ to AAA, while Pepsi fell from AAA to AAA-.

    Eastroc Enters the Global Top Ten

    China’s presence among global beverage leaders widened further down the table. Eastroc claimed the tenth position globally with a brand value of US$4.99bn and an AAA brand rating.

    The functional drinks specialist lifted its valuation by 62 per cent from US$3.08bn in 2025. That jump followed a deliberate shift away from pure energy drink production into broader hydration categories, backed by export shipments into Southeast Asia, the Middle East, and the United States. Eastroc lifted its Brand Strength Index score to 85.4, up from 82.8 last year.

    Beyond its financial performance, Nongfu Spring has also overtaken Coca-Cola in terms of brand strength to become the strongest non-alcoholic drink brand in 2026, securing an impressive 89.8/100 BSI score.

    Western Incumbents Yield Ground in Asia

    The reordering reflects a structural operational challenge for Western soda giants across Asian retail shelves. For two decades, multinational conglomerates held distribution dominance by trading on universal brand recognition and bottling partnerships. Domestic Asian operators now build distribution routes that are faster and cheaper to run, leaning directly into consumer flight from high-sugar carbonated drinks.

    Retail buyers in primary Asian markets allocate refrigerator shelf space based on inventory turns. Unsweetened ready-to-drink teas and domestic electrolyte waters turn over faster than imported colas in modern trade. That shift pressures margin structures for Coca-Cola and PepsiCo bottlers, who face defensive price discounting to protect volume share against domestic rivals carrying lower production overheads.

    Shifting Consumer Formulations

    The valuation divergence deepens an earlier divide visible in 2025 trading results. While Coca-Cola preserved stability through its Zero Sugar product line, Pepsi absorbed volume contractions across multiple emerging territories as cost-conscious shoppers traded down to local alternatives.

    Nongfu Spring founder Zhong Shanshan countered price wars in mainland China by pairing basic hydration items with higher-margin functional teas. The strategy allowed the producer to absorb retail price deflation while pulling revenue growth out of adjacent categories. Competitor Eastroc mirrored this approach, using electrolyte formulations to establish quick traction in convenience chains across Southeast Asia.

    The test for Asian beverage operators shifts to their overseas balance sheets. Eastroc faces rising marketing costs as it scales shelf distribution in North American and Middle Eastern retail stores, where local listing fees squeeze working capital. Nongfu Spring must protect its mainland operating margins against retail price discounting as competitors prepare their upcoming summer product runs.

  • Coca-Cola Raises Full-Year Profit Target on Resilient Emerging Market Demand

    Coca-Cola Raises Full-Year Profit Target on Resilient Emerging Market Demand

    Coca-Cola raised its annual profit forecast on Tuesday, Oct 27, projecting comparable currency-neutral earnings per share to grow at least 9 per cent in 2026. The beverage giant previously targeted full-year earnings growth between 7 per cent and 8 per cent.

    Third-quarter revenue rose 7.4 per cent to US$13.38 billion, topping analyst projections of US$12.92 billion compiled by LSEG. Adjusted earnings per share reached 91 cents, ahead of the 88 cents consensus estimate.

    Emerging Markets Drive Global Volume

    Global unit case volumes increased about 5 per cent during the three months ended Oct 2. Volume expansion in India, China, Mexico and Brazil supported the overall gain, compensating for flat demand in North America.

    Shoppers in Asian markets continued buying core trademark sodas alongside zero-sugar varieties. In Western markets, the company leaned on pricing actions and package tiering, selling smaller, cheaper entry packs alongside higher-priced products such as fairlife milk, Topo Chico, and Coca-Cola Cherry Float.

    Divergence From Snack and Beverage Rivals

    The volume momentum widens the gap between Coca-Cola and competitors such as PepsiCo, which has struggled with softening snack sales in the United States. While North American consumers cut discretionary packaged foods, beverage intake remained stable across both developed and developing retail channels.

    For retailers and convenience store operators across Asia, the numbers show sustained foot-traffic demand for impulse cold-drink categories. Bottlers face higher inventory values, but turnover rates for core carbonated brands have held up better than non-essential ambient grocery items.

    Packaging Pressures and Input Volatility

    Operating margins face persistent headwinds from volatile industrial packaging markets. Rising commodity costs tied to the US war in Iran pushed aluminum and PET plastic expenses higher throughout the year.

    The company warned in July that container input costs had climbed past internal budgets. Those packaging increases continue to pinch margins even as net pricing gains shield headline top-line performance.

    Pricing Trajectory Into Year-End

    Coca-Cola’s stock has risen about 33 per cent in 2026, heading toward a third consecutive annual gain despite broad retail belt-tightening and geopolitical shocks. Shares traded marginally lower in premarket deals following the release.

    Management must now navigate final-quarter price elasticity across developing Asian cities as regional currencies shift against the dollar. The final quarterly filing will show whether volume gains in India and China can outpace elevated resin and can costs through December.

  • Diet Coke Cans Reach Record 70 Rupees in India as Aluminium Squeeze Bites

    Diet Coke Cans Reach Record 70 Rupees in India as Aluminium Squeeze Bites

    Coca-Cola bottlers and retailers across India have raised Diet Coke prices to 70 rupees for a 330 ml can, up from 50 rupees, as metal packaging costs climb.

    The 40 per cent jump hits major urban territories, including Delhi-NCR, Mumbai, Bengaluru and Goa. Local stores there charge the new rate even on inventory printed with the earlier 50-rupee maximum retail price.

    Metal costs squeeze bottler margins

    Can-grade aluminium prices surged 30 per cent year-on-year after conflict in West Asia disrupted supplies earlier this year. That inflation forced independent packaging partners to pass costs down the distribution chain.

    Bottlers say packaging economics collapsed under higher procurement tabs for beverage cans. One independent Coca-Cola bottler stated:

    “Yes, we are selling 330 ml cans of Diet Coke at ₹70 now. The increase in prices of aluminium cans is unsustainable,”

    Divergence between store shelves and apps

    Offline retailers and neighborhood grocers applied the 70-rupee price tag across metro markets, triggering consumer pushback on social media. Quick-commerce apps like Blinkit and Zepto still fulfill customer orders at the official 50-rupee price printed on the 330 ml packs.

    This pricing split creates friction across urban retail channels. General trade grocers and supermarkets face customer disputes at billing counters. App-based delivery platforms hold to official price tags to defend basket sizes.

    Coca-Cola stated that company guidance remains tied to package labeling. A company spokesperson said:

    “In line with Indian regulations, our recommendation to all trade partners is to charge the MRP printed on the pack.”

    Surging demand outstrips can availability

    Consumer demand for zero-sugar soft drinks doubled over the past 12 months, draining bottling lines of inventory. High demand and tight can supply allowed distributors to hike rates without hurting sales volumes.

    Independent bottlers operate with separate cost bases from company-owned plants. That makes localized price hikes hard for the brand owner to rein in. A senior beverage industry executive noted:

    “Pricing being taken by independent bottlers and retailers is beyond the company’s control. The decision to hike prices is a direct consequence of demand for the zero-calorie drink having doubled over the last year,”

    The shift from smaller pack sizes

    The latest jump follows a packaging transition that began in July. Coca-Cola phased in 330 ml cans at 50 rupees to replace older 300 ml cans priced at 40 rupees, standardizing can sizes while adjusting price realization per unit.

    Attention now turns to whether quick-commerce platforms raise listing prices to match general trade as new inventory reaches warehouses. Aluminium raw-material prices heading into the next bottling cycle will decide if the 70-rupee level sticks.

  • Coca-Cola Adds Unsweetened Pu Erh Tea to Malaysia Lineup

    Coca-Cola Adds Unsweetened Pu Erh Tea to Malaysia Lineup

    The Coca-Cola Co expanded its ready-to-drink Authentic Tea House line in Malaysia on October 10. The unsweetened Pu Erh variant uses tea leaves sourced from Yunnan province.

    Across the region, the RTD tea and coffee sector is projected to expand from 124.79 billion dollars in 2025 to 232.06 billion dollars by 2035. That represents a 6.4 per cent compound annual growth rate.

    Bottled without sugar, the Pu Erh SKU joins established Ayataka green tea and Oolong variants in local chillers. Coca-Cola generated 50.13 billion dollars in annual revenue. The Atlanta-based company is targeting Malaysian shoppers seeking traditional Chinese tea profiles without artificial sweeteners or syrups.

    Yunnan tea leaves enter Malaysian chillers

    Authentic Tea House uses single-origin leaf extraction rather than powdered concentrates against mass-market sweet teas. Yunnan Pu Erh is the brand’s first dark tea in the country. It delivers a fermented profile typically found in traditional teahouses and dim sum dining rooms.

    This recipe contains zero calories and zero added sugar. By keeping the formulation plain, Coca-Cola avoids excise duties levied on sweetened ready-to-drink beverages across Southeast Asian markets.

    Sugar reduction reshapes Southeast Asian shelves

    Convenience retailers across Malaysia are turning chillers over to plain teas as shoppers abandon sugary drinks. Unsweetened variants offer higher retail margins per facing for supermarket operators and minimarket chains like 99 Speedmart and 7-Eleven. They also match government health guidelines designed to curb diabetes rates.

    Regional beverage producers who long relied on sweet formulas to drive volume face mounting pressure. Rivals are shifting quickly. PepsiCo pushed low-sugar and functional RTD coffee formulations earlier this year, while Tata Consumer Products posted 41 per cent revenue growth in its ready-to-drink unit behind zero-sugar innovations.

    Global RTD beverage shifts

    Coca-Cola operates in more than 200 countries with over 500 brands, relying on local bottling partners for regional distribution. The company has steadily diversified away from carbonated soft drinks. It wants to capture growth in hydration, tea, and ready-to-drink coffee segments across Asia-Pacific.

    Packaged tea continues to absorb functional and clean-label trends as consumers prioritize basic ingredient lists. Ready-to-drink formats let global brands monetize traditional café and restaurant occasions inside convenience channels.

    Shelf space battle in convenience channels

    Nationwide modern trade outlets, petrol marts, and independent grocers will roll out the Pu Erh variant throughout the final quarter of 2026. Retail buyers will watch whether fermented dark tea can match the volume throughput of green and oolong variants in high-traffic urban convenience stores.

  • Tokyo Tatemono and UBS Back A$1.2B Charter Hall Logistics Venture

    Tokyo Tatemono and UBS Back A$1.2B Charter Hall Logistics Venture

    Charter Hall has set up an Australian logistics vehicle with Tokyo Tatemono and UBS Asset Management targeting an end value of A$1.2 billion ($859.3 million). The seed portfolio covers 335,000 square metres of east coast warehousing. Long-term leases to major grocery and beverage operators back the assets.

    Known as Charter Hall Industrial Partnership 5, the vehicle holds six industrial properties transferred mostly from the manager’s A$14.3 billion Charter Hall Prime Industrial Fund. Supermarket chains Coles and ALDI anchor the sites alongside Coca-Cola. These tenants secure immediate cash flow from essential consumer supply chains.

    The deal is Tokyo Tatemono’s initial entry into Australian logistics and its first direct venture with Charter Hall. Under its fiscal 2025 to 2027 plan, the Japanese property group allocated JPY 110 billion ($687.1 million) for overseas deployments. This partnership is its fourth commercial commitment in Australia.

    East coast assets and tenant footprint

    In Sydney, the portfolio holds three single-storey buildings in Wetherill Park, roughly 32 kilometres west of the central business district. Charter Hall completed the facilities in 2023 following a 2020 commitment by Coles. The site spans 142,599 square metres and delivers 73,835 square metres of net lettable area. Coles leases the whole complex for online fulfilment.

    Two established distribution centres make up the Queensland holdings. The first is a 71,670 square-metre facility in Brendale, 22 kilometres north of Brisbane, on a 185,500 square-metre plot. ALDI occupies the entire site after agreeing to a long-term lease expansion earlier this year. The second is a 79,261 square-metre warehouse on a 249,000 square-metre parcel in Richlands. It was built in 1993, expanded in 2017, and is leased entirely to Coca-Cola.

    Melbourne hosts the portfolio’s development component in Dandenong South, 31 kilometres from the city centre. The project will yield four single-storey warehouses with 110,943 square metres of net lettable area. It adds capacity to Melbourne’s tight outer-east market.

    Capital shifts across Asia-Pacific logistics

    Japanese developers and institutional asset managers continue redirecting balance sheet capital into developed Asia-Pacific logistics hubs. Yield spreads in Australia remain wide compared to domestic Japanese debt costs. This gap encourages groups like Tokyo Tatemono to take equity positions alongside local managers rather than building operational teams from scratch.

    Wholesale partnerships offer Australian landlords and retail tenants fresh development equity as traditional bank financing faces tighter underwriting constraints. Partnerships tied to grocery and beverage tenants reduce vacancy risks for offshore investors. At the same time, they fund dedicated fulfilment centres for major supermarket chains.

    Charter Hall expands wholesale partnerships

    This transaction broadens Charter Hall’s institutional roster and extends operational ties with UBS Asset Management into direct logistics ownership. Demand for modern warehousing across Australia’s eastern seaboard is up sharply. Leasing data from CBRE shows net industrial take-up surpassed 1.4 million square metres during the first half of 2026. That is more than double the volume recorded in the previous six months.

    Earlier this month, Charter Hall spent A$192.4 million on three logistics properties southwest of Brisbane for a parallel vehicle, Charter Hall Industrial Partnership 6. Those assets feed into an under-construction A$350 million industrial precinct near Darra, about 20 kilometres from central Brisbane.

    Timelines and next development milestones

    Past Australian projects for Tokyo Tatemono include a 25-unit residential build in Sydney’s Crows Nest and two suburban warehouse projects near Sydney. It also holds a build-to-rent residential development at 899 Collins Street in Melbourne.

    Australia’s industrial and logistics sector presents a compelling investment opportunity, supported by attractive market fundamentals, resilient occupier demand and long-term growth drivers.

    Work on the Dandenong South logistics estate in Melbourne begins in 2026, with staged handovers running through 2030. Charter Hall and its partners will also start planned expansion work at the Brendale distribution facility before the end of this financial year.

  • Coca-Cola Commits P157 Million to Aid 15,000 Philippine Micro-Retailers

    Coca-Cola Commits P157 Million to Aid 15,000 Philippine Micro-Retailers

    Coca-Cola Philippines launched a 157 million peso support fund in 2020 to help more than 15,000 sari-sari store operators resume trading safely across the country. The capital injection targets micro-retailers hit by extended pandemic lockdowns and economic disruptions.

    Micro-retailers represent the commercial backbone of Philippine fast-moving consumer goods distribution, accounting for more than one million outlets nationwide. Industry survey data from the Philippine Association of Sari-Sari Store and Carinderia Owners showed that 42 per cent of sari-sari stores and 75 per cent of small eateries shut during peak lockdown periods, while surviving outlets scaled back inventory and operating capacity by up to 90 per cent.

    Restoring neighborhood retail channels

    The company rolled out the initiative, titled the Rebuilding Sari-Sari Stores Through Access to Resources and Trade (ReSTART) program, alongside the Department of Trade and Industry. Participating vendors receive cash assistance, digital training modules, and retail guidance designed to meet national health and safety compliance rules.

    Bottling arm Coca-Cola Beverages Philippines, Inc. Paired the state-backed scheme with direct balance-sheet relief for distributors. The bottler revised credit terms and payment schedules for route partners while working with the Philippine Disaster Resilience Foundation to deliver 10,000-peso starter inventory packs, including 3,000 pesos of beverage stock, to 400 vulnerable store owners.

    Distribution push for returning workers

    Beyond existing store networks, the group is recruiting displaced overseas workers into its wholesale logistics chain. More than 285,000 overseas Filipino workers faced sudden repatriation during global travel halts and regional economic contractions.

    Through the OFW RISE program, run with the Department of Labor and Employment and technical training body TESDA, the beverage maker offers business coaching and exclusive wholesale rights. The companion Balik Pinas initiative expands that commercial pipeline nationwide, establishing family-run beverage distributorships backed by brand credit lines.

    “This is why we have continued and intensified investments in the country and have launched initiatives like Balik Pinas for returning OFWs,” said Gareth McGeown, President and Chief Executive Officer of Coca-Cola Beverages Philippines, Inc.

    Supply chain defense in traditional trade

    Fast-moving consumer goods manufacturers in Southeast Asia face immediate revenue loss when informal retail stalls. Unlike modern supermarket chains with centralized warehouses, traditional trade in the Philippines relies on daily cash turns and high-frequency neighbourhood purchases. When micro-retailers lack working capital to restock beverage coolers, beverage volume drops instantly at the factory gate.

    Direct financial intervention protects downstream volume more effectively than conventional consumer marketing during a retail slump. Competitors in the packaged food and beverage categories face identical route bottlenecks, but deploying balance-sheet liquidity directly into vendor restock programs locks in shelf space before independent retailers switch working capital to dry goods or alternative suppliers. The credit risk sits with repayment rates among cash-strapped micro-entrepreneurs, yet writing off trade support costs less than rebuilding lost distribution reach.

    Targets for the nationwide network

    The micro-retail recovery packages build on continuous capital deployment across the bottler’s domestic infrastructure. CCBPI maintains 19 operational manufacturing plants across Luzon, the Visayas, and Mindanao, supported by a proprietary fleet logistics footprint.

    Execution milestones now rest on onboarding the targeted 15,000 micro-retailers into the ReSTART network while scaling wholesale recruitment for returning workers across provincial distribution hubs.

  • Coca-Cola Europacific Partners Teams Up with Visy for Sustainable, Efficient Freight Transport Deal

    Coca-Cola Europacific Partners Teams Up with Visy for Sustainable, Efficient Freight Transport Deal

    Coca-Cola Europacific Partners (CCEP) in the Australia Pacific region has formed a strategic partnership with Visy to oversee freight transport on select national transit paths.

    Partnership Details

    Within the framework of Visy’s national fleet network, CCEP is set to reap the benefits of dependable capacity, operational adaptability, and state-of-the-art transport facilities. This includes access to Volvo FH600 prime movers and high-capacity 36-pallet trailer configurations.

    These uniquely configured trailers enable CCEP to transport 6% more goods per journey compared to the standard 34-pallet configurations, thus reducing the total number of road trips. The incorporation of Euro 6 engines is anticipated to decrease CCEP’s freight fuel consumption by 5%.

    Tim Chapman from CCEP Australia Pacific stated the importance of having the right partners across their supply chain, given the company’s role in manufacturing and moving some of Australia’s favorite beverages on a daily basis. He noted that Visy Logistics provides the necessary scale and linehaul ability to support this, while also granting access to higher-capacity equipment for a more efficient and sustainable supply chain.

    The partnership agreement includes plans for dedicated CCEP branding to be displayed on select Visy Logistics trailers as they transport goods interstate.

    Partnership Goals

    The collaboration aims to ensure stable, efficient product distribution for the beverage distributor, while also addressing corporate supply chain sustainability goals through the use of modernized freight equipment.

    Wayne Boxshall, president of Visy Logistics Australia, spoke about the partnership reflecting the robustness of their transport capabilities and their consistent delivery of high-quality results for their clientele.

    Visy made headlines earlier this year with the announcement of its investment in a new packaging hub in Devonport, which will supply cardboard packaging throughout Tasmania.

    Questions & Answers

    What benefits will CCEP gain from its strategic partnership with Visy?
    CCEP will gain reliable capacity, operational flexibility, and access to modern transport facilities, including high-capacity trailers and Euro 6 engines, which are expected to decrease CCEP’s freight fuel consumption by 5%.

    How will the partnership affect product distribution?
    The partnership aims to ensure consistent, efficient product distribution for CCEP, while addressing corporate supply chain sustainability targets through modernised freight equipment.

    What future plans does the partnership include?
    The agreement includes plans for dedicated CCEP branding to be displayed on select Visy Logistics trailers as they transport goods interstate.

  • Coca-Cola Unveils New Absolut Vodka & Sprite Fusion: A Game Changer in Australia’s Ready-to-Drink Market

    Coca-Cola Unveils New Absolut Vodka & Sprite Fusion: A Game Changer in Australia’s Ready-to-Drink Market

    Coca-Cola Australia has broadened its alcoholic ready-to-drink range with the introduction of mixed drinks featuring Absolut Vodka and Sprite.

    Varieties in the New Range

    The new product line includes two distinct variants: Absolut Vodka Mixed with Sprite and Absolut Vodka Mixed with Sprite Zero Sugar. Both the versions maintain a modest alcohol by volume (ABV) content of 5 per cent, offered in 330ml cans.

    Available Packaging Options

    Customers have the option to buy these beverages in 4-packs, 10-packs, or bulk 24-can cases. The range of packaging options caters to different customer needs, whether it’s for personal consumption or a social gathering.

    Developing a Premium, Refreshing RTD Option

    Matthias Blume, Vice President of ARTD at Coca-Cola Australia, spoke about the recent launch. He stated that the introduction of Absolut Vodka Mixed With Sprite is a fusion of two renowned brands, aiming to provide a high-quality, invigorating ready-to-drink option for consumers in Australia. He also emphasized that this product is a valuable addition to their expanding ARTD portfolio, as it mirrors the ongoing momentum of the category and responds to the increasing consumer demand.

    Notably, this isn’t Absolut Vodka’s first foray into creative flavor combinations. The brand had previously collaborated with Tabasco to introduce a spicy flavor variant to its range.

    Questions & Answers

    What are the two versions of the new product launched by Coca-Cola Australia?
    Absolut Vodka Mixed with Sprite and Absolut Vodka Mixed with Sprite Zero Sugar are the two versions introduced in the new range.

    What are the available packaging options for this new range?
    Consumers can purchase these beverages in 4-packs, 10-packs, or 24-can cases.

    What is the significance of this new product range according to Matthias Blume, VP ARTD at Coca-Cola Australia?
    Matthias Blume suggests that the introduction of Absolut Vodka Mixed With Sprite reflects not only the momentum of the category but also the increasing consumer demand. It is intended to provide a premium, refreshing ready-to-drink option for Australian consumers.

  • Coca-Cola’s Upbeat 2025: Digital Transformation and Steady Growth Ahead

    Coca-Cola’s Upbeat 2025: Digital Transformation and Steady Growth Ahead

    Coca-Cola, a leading player in the soft drink industry, showcased continued revenue growth in 2025, setting the groundwork for its long-term success plan.

    Growth Pattern

    The company’s net revenues exhibited a 2% increase in both the fourth quarter and the entire year, while organic revenues saw a 5% growth over the same timeframe. James Quincey, chairman and CEO of Coca-Cola, expressed his satisfaction with the 2025 performance, which he believes demonstrates both the resilience and momentum inherent in the business.

    Quincey also shared insights into the company’s future plans, stating, “Our focus moving forward will be on better execution of our strategy and ensuring our system is primed for long-term success.”

    Towards a Digital Future

    Coca-Cola is set to fast-track its digital transformation with the aim of fostering closer relationships with consumers. Key initiatives include the establishment of a chief digital officer position, the launch of innovation hubs, and the inception of “commercial centres of excellence” in strategic markets.

    A spokesperson for the company explained that, “These collective actions are designed to better position the business to attract new customers, take the lead with marketing and innovation, and pilot a system that is ready for the future.”

    Sales and Revenue Highlights

    Sales figures for Coca-Cola’s zero sugar drink rose by 13% in Q4, while Diet Coke saw a 2% increase in the same period. However, the company’s operating income for the quarter fell 32% due to a US$960 million ($1.35 billion) charge related to a Bodyarmor trademark. Despite this, annual operating income showed a 38% rise.

    Future Expectations

    Looking ahead, Coca-Cola anticipates a free cash flow of approximately $17.1 billion, which includes an estimated $20.2 billion cash flow from operations.

    Questions & Answers

    What were the growth rates for Coca-Cola’s net and organic revenues in 2025?
    The company’s net revenues grew by 2% and organic revenues increased by 5% in the same year.

    What are some initiatives Coca-Cola is taking as part of its digital transformation?
    Coca-Cola is appointing a chief digital officer, setting up innovation hubs, and creating commercial centres of excellence in key markets.

    How does Coca-Cola’s operating income for 2025 compare to the previous year?
    Despite a 32% drop in the operating income for Q4 due to a trademark-related charge, the annual operating income grew by 38%.

  • Coca-Cola Charts New Course: Henrique Braun to Succeed James Quincey as CEO

    Coca-Cola Charts New Course: Henrique Braun to Succeed James Quincey as CEO

    The Coca-Cola Company recently announced that Henrique Braun, currently serving as executive Vice President and Chief Operating Officer, is set to become the organization’s next Chief Executive Officer. This change in leadership is scheduled to take effect from March 31, with Braun succeeding James Quincey.

    Quincey is not leaving the company entirely, however. He will be transitioning to the role of Executive Chairman. Furthermore, the board has plans to nominate Braun for election as a director during the annual shareholder meeting next year.

    Quincey’s tenure as CEO, which lasted nine years, was marked by his effective leadership in guiding the company through significant shifts and changes. He notably spearheaded the company’s transition towards a comprehensive beverage strategy. This involved restructuring its operational model, advancing its digital and marketing transformation, and overseeing the launch of over 10 billion-dollar brands. Additionally, he steered the company through the challenges posed by the Covid-19 pandemic.

    Quincey’s leadership style has been lauded by David Weinberg, Coca-Cola’s lead independent director, who described Quincey as a transformative leader. He further commended Quincey for setting and implementing a strategy that has bolstered Coca-Cola’s standing as a global leader. Quincey is expected to remain an active participant in the company’s operations through his new role as executive chairman.

    Reflecting on his time as CEO, Quincey expressed gratitude for the opportunity to have served such a robust and enduring business over his 30-year career with the company. He voiced his confidence in his successor, praising Braun as a trusted and highly experienced business partner. He expressed his belief that Braun is the ideal person to navigate the company and the Coca-Cola system towards future growth and success.

    In his new role as CEO, Braun will concentrate on identifying and capitalizing on global growth opportunities, reinforcing consumer connections, and harnessing technology to bolster business performance.

    Braun expressed his pleasure at being given this new responsibility. He pledged to maintain the momentum established by the company and to strive for future growth in collaboration with their bottlers.

    Weinberg expressed confidence in a smooth transition of leadership, stating that Quincey has fulfilled his role as a strong CEO and that Braun has demonstrated his suitability to lead Coca-Cola into the future.

    Questions & Answers

    Who will be the new CEO of The Coca-Cola Company?
    Henrique Braun will become the new Chief Executive Officer of The Coca-Cola Company.

    What role will James Quincey assume after stepping down as CEO?
    James Quincey will transition to the role of Executive Chairman after his stint as CEO.

    What will be Henrique Braun’s primary focus as the new CEO?
    As CEO, Braun will aim to leverage global growth opportunities, strengthen consumer connections, and harness technology to boost business performance.

  • Coca-Cola Vietnam’s $31M Tax Challenge Shaken: Legal Appeal Loses Fizz

    Coca-Cola Vietnam’s $31M Tax Challenge Shaken: Legal Appeal Loses Fizz

    Despite its efforts to dispute a tax claim, Coca-Cola Vietnam has been ordered to pay VND821 billion ($31.1 million) in back taxes and penalties after losing a lawsuit. The lawsuit was dismissed by the HCMC People’s Court last Thursday. This judgment upholds the decision made by the General Department of Taxation on December 25, 2019.

    Incorrect Tax Filings

    The tax authorities began to question Coca-Cola Vietnam’s tax filings for the business period from 2007 to 2015. Subsequent investigations revealed that the company had made errors in its filings, leading to an order for it to pay VND471 billion in back taxes and VND288 billion as a penalty for late payment.

    In court documents, the tax department revealed that Coca-Cola Vietnam had consistently reported losses from 1994 to 2015, resulting in no payment of business income taxes for those years, excluding 2015 when it paid VND115 billion. However, a contrary trend was noticeable in its net revenues, which consistently rose during this period. The company’s net revenues had reached VND197 billion in 2001, VND1.13 trillion in 2008, and VND6.82 trillion in 2015.

    Audit Results and Legal Disputes

    An audit of Coca-Cola Vietnam’s tax filings for the years 2016-2017 was conducted by the tax authorities. The audit, which concluded in December 2019, found incorrect filings, leading to the company’s underpayment of taxes. Coca-Cola Vietnam lodged a complaint in 2020, requesting the removal of part of the order, but this was dismissed by the tax department. Consequently, the company initiated a lawsuit in 2022.

    During the lawsuit, Coca-Cola Vietnam acknowledged disagreements with some of the tax authorities’ conclusions but was unable to provide sufficient evidence to support its case. The tax department maintained that its audit and decisions were in accordance with the law, a position which the court validated.

    Despite the dismissal of its appeal, Coca-Cola Vietnam stated that it respects the court’s procedures and judgement, reiterating its commitment to full compliance with tax regulations. The company is currently contemplating its subsequent moves.

    Coca-Cola’s History in Vietnam

    Coca-Cola made its entry into the Vietnam market in 1994, becoming one of the first U.S. companies to invest in the country after diplomatic relations were normalized. In more recent years, the company invested $136 million to establish a new factory in the southeastern province of Tay Ninh, indicating its continued intent to contribute to Vietnam’s development.

    Questions & Answers

    What was the outcome of Coca-Cola Vietnam’s lawsuit?
    The company’s lawsuit was dismissed, and it was ordered to pay VND821 billion ($31.1 million) in back taxes and penalties.

    What accounting discrepancies were found by the tax authorities?
    The tax authorities found that Coca-Cola Vietnam had been reporting losses consistently from 1994 to 2015, resulting in no payment of business income taxes for those years, except for 2015. However, the company’s net revenues had been steadily rising during this same period.

    How has Coca-Cola reacted to the court’s decision?
    Coca-Cola Vietnam has expressed respect for the court’s procedures and judgement. The company maintains that it has always fully complied with tax regulations and is considering its next course of action.

  • Bacardi and Coca-Cola Europacific Partners: Brewing Success in Australia with New Distribution Deal

    Bacardi and Coca-Cola Europacific Partners: Brewing Success in Australia with New Distribution Deal

    On November 3, Bacardi-Martini and Coca-Cola Europacific Partners (CCEP) initiated a multi-year partnership in Australia. This strategic alliance between the two beverage leaders aims to broaden their influence in the local drinks industry.

    The Partnership Details

    The partnership, first publicized in August, allows CCEP the responsibility of distributing an array of well-known brands. These encompass Bacardi rum, Bombay Sapphire gin, Grey Goose vodka, Patrón tequila, Dewar’s Scotch whisky, Angel’s Envy whiskey, and Martini vermouth. Simultaneously, Bacardi-Martini will continue to manage marketing and brand strategies.

    Luiz Schmidt, the Managing Director of Bacardi-Martini Australia, emphasized the importance of this collaboration. “Our brands are incredible with fantastic equity, but we acknowledge that to fully exploit their potential in Australia, we need to collaborate with an organization that possesses the necessary resources to put them in consumers’ hands nationwide,” he stated.

    Schmidt further stated that not only does CCEP have tremendous scale, but it also possesses proven industry expertise that can ensure long-term sustainable growth for both companies.

    Strengthening CCEP’s Market Position

    This agreement solidifies CCEP’s position as a key contender in the local premium drinks market and mirrors broader consolidation trends in beverage distribution.

    Orlando Rodriguez, the Managing Director of Australia Coca-Cola Europacific Partners, expressed his enthusiasm about the partnership and its potential. “The Bacardi portfolio is iconic, and we at CCEP have the track record of operational excellence to best support it,” Rodriguez stated.

    He added that both companies are eagerly anticipating the accomplishments they can achieve in the vibrant and expanding alcohol category.

    Questions & Answers

    What does the partnership between Bacardi-Martini and CCEP entail?
    The partnership allows CCEP to distribute Bacardi-Martini’s renowned brands across Australia, including Bacardi rum, Bombay Sapphire gin, among others, while Bacardi-Martini will continue managing marketing and brand strategies.

    How does the partnership affect CCEP’s position in the market?
    The agreement strengthens CCEP’s position as a leading player in the local premium drinks market and reflects broader consolidation trends in beverage distribution.

    What are the expected outcomes of this alliance?
    The Managing Directors of both Bacardi-Martini Australia and Coca-Cola Europacific Partners have expressed optimism about the potential growth and achievements this partnership can bring to the dynamic and expanding alcohol category in Australia.

  • Coca-Cola Partners with Return-It to Pilot Reverse Vending Machines: Taking Beverage Container Recycling to the Next Level in Australia

    Coca-Cola Partners with Return-It to Pilot Reverse Vending Machines: Taking Beverage Container Recycling to the Next Level in Australia

    Coca-Cola Europacific Partners (CCEP) Australia has initiated the introduction of reverse vending machines (RVMs) in its primary manufacturing facilities, commencing with its Moorabbin site in Victoria.

    What is a Reverse Vending Machine?

    A reverse vending machine is a sophisticated device designed to collect empty beverage containers. This includes plastic bottles, glass bottles, and aluminium cans, which are then funneled into the recycling process. Users are often rewarded for their recycling efforts, typically in the form of a deposit refund, voucher, or other incentives.

    CCEP Australia’s trial initiative is being carried out in collaboration with Return-It, the eastern zone network operator for Victoria’s Container Deposit Scheme (CDS Vic). The main goal of this venture is to make container recycling more accessible to the general public.

    Industry Partnerships Promote Recycling

    Orlando Rodriguez, the Managing Director for Australia at CCEP, expressed the company’s pride in making Coca-Cola in Moorabbin for over 65 years. He highlighted that with the installation of the reverse vending machine, consumers can now return their containers for recycling at the same location where their favourite beverages are produced.

    Marc Churchin, CEO of Return-It, emphasized that the collaboration highlights the crucial role of industry partnerships in advancing recycling efforts. He mentioned that the organization’s mission is to make recycling worthwhile by making it accessible, easy, and rewarding.

    Future Expansion Plans

    Beyond the Moorabbin facility, CCEP Australia has plans to expand the deployment of RVMs to other manufacturing locations across Australia. Rodriguez added that “the initiative reflects our long-standing support for Australia’s container deposit schemes and our commitment to investing in local recycling infrastructure. We want to ensure beverage containers are kept out of the environment.”

    Questions & Answers

    What is the function of a reverse vending machine?
    A reverse vending machine collects empty beverage containers, such as plastic bottles, glass bottles, and aluminium cans. These are then recycled, and users are incentivized for their participation in the form of deposit refunds, vouchers, or other rewards.

    What is the objective of CCEP’s initiative with Return-It?
    The primary goal is to make container recycling more accessible to the general public. This is achieved by installing reverse vending machines at locations where beverages are produced, enabling consumers to return their containers for recycling.

    What are Coca-Cola Europacific Partners’ (CCEP) future plans regarding reverse vending machines?
    CCEP plans to expand the rollout of reverse vending machines to more manufacturing locations across Australia. This reflects their ongoing support for local container deposit schemes and commitment to investing in local recycling infrastructure.

  • Coca-cola Q3 Report: Revenue Boost Amid Challenging Market, Category & Regional Performance Explored

    Coca-cola Q3 Report: Revenue Boost Amid Challenging Market, Category & Regional Performance Explored

    In the third quarter, Coca-Cola revealed a 5% increase in net revenue, rising to $19.2 billion. Their organic revenue also observed a 6% increase during this period.

    Challenging Market Conditions

    James Quincey, the Chairman and CEO of Coca-Cola, acknowledged the challenging market conditions, yet credited the company’s impressive performance to their diverse beverage portfolio and the unique strengths of their franchise model.

    Growth Across Regions

    Unit case volume increased by 1% during the third quarter. This growth was driven by increasing sales in specific regions such as Central Asia, North Africa, Brazil and the UK.

    Category Performance

    The performance varied across the different beverage categories. Sparkling soft drink volumes remained stable, with a 1% growth in unit case volume. This growth was primarily driven by gains in Europe, the Middle East and Africa, and the Asia Pacific region.

    Coca-Cola Zero Sugar saw a considerable increase in sales, with a 14% rise across all regions. Diet Coke and Coca-Cola Light also performed well, with a 2% increase predominantly due to growth in North America and the Asia Pacific region.

    However, not all categories experienced growth. Sparkling flavours saw a 1% decline as gains in Europe, the Middle East and Africa were offset by weaker results in the Asia Pacific region. Additionally, juice, value-added dairy and plant-based beverages saw a 3% decline.

    Conversely, water saw a 3% increase across all regions, sports drinks rose 3% due to growth in North America, and coffee grew 2%, driven by the Asia Pacific and Europe, Middle East and Africa regions.

    Refranchising Strategy

    Coca-Cola also made advancements in its refranchising strategy during the quarter. Coca-Cola HBC AG agreed to obtain a controlling interest in Coca-Cola Beverages Africa, furthering the company’s shift towards a franchise-focused model. In a separate transaction, the company completed the sale of a 40% stake in Hindustan Coca-Cola to the Jubilant Bhartia Group.

    The company confirmed that its productivity programs have helped counter inflationary pressures and have supported investment in areas such as digital and omnichannel capabilities.

    Future Projections

    Coca-Cola anticipates generating a minimum of $15 billion in free cash flow for the remainder of the fiscal year and affirmed that it is on track to meet its full-year guidance. Looking further ahead, Quincey expressed confidence in the company’s ability to meet its 2025 guidance while also working towards achieving its long-term objectives.

    Questions & Answers

    Does Coca-Cola expect to meet its full-year guidance?

    Yes, Coca-Cola confirmed that it expects to meet its full-year guidance.

    Which regions contributed to the growth of Coca-Cola?

    The growth in the third quarter was largely driven by increasing sales in regions such as Central Asia, North Africa, Brazil and the UK.

    What was the result of Coca-Cola’s refranchising strategy in the third quarter?

    During the third quarter, Coca-Cola HBC AG agreed to obtain a controlling interest in Coca-Cola Beverages Africa, furthering the company’s shift towards a franchise-focused model. Additionally, the company completed the sale of a 40% stake in Hindustan Coca-Cola to the Jubilant Bhartia Group.