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Tag: coca-cola

  • Swire Pacific acquires Coca-Cola bottling business in Vietnam, Cambodia

    Swire Pacific acquires Coca-Cola bottling business in Vietnam, Cambodia

    Hong Kong-based conglomerate Swire Pacific is offering $1 billion for Coca-Cola’s bottling operations in Vietnam and Cambodia, a move to expand its presence in the Southeast Asian market.

    Swire Pacific will pay Coca-Cola Indochina, which produces and sells Coca-Cola products in both countries, $1.015 billion in cash, South China Morning Post cited its filing to the Hong Kong stock exchange Monday.

    The transactions “will expand the group’s beverages business into one of the most rapidly growing beverages markets,” the company said.

    It is expected to be completed within the next six months, subject to antitrust approval, Bloomberg cited the filing.

    Swire, a Hong Kong- and London-based British conglomerate, was founded over 200 years ago in 1816. It has been redirecting investment into key operations of beverages and property, as well as emerging sectors like healthcare.

    It is also the principal shareholder at Hong Kong flag carrier Cathay Pacific Airways, one of Asia’s best-known airlines.

    Back in 2016, the group bought a Coca-Cola’s bottling facility in southern China. Its beverage arm operates one of the largest Coca-Cola plants in the world.

    In Vietnam, Coca-Cola has three factories, currently under the control of Coke’s Bottling Investment Group.

  • Coca-Cola names new regional marketing VP

    Coca-Cola names new regional marketing VP

    Coca-Cola has appointed Matthias Blume as its new VP of marketing, ASEAN and South Pacific. Based in Singapore, Blume will lead the company’s marketing and brand initiatives across Southeast Asia, Australia, New Zealand, and the Pacific Islands and serve on the company’s senior leadership team in the region.

    He was most recently the frontline director for Coca-Cola’s ASEAN and South Pacific operating unit, based in Singapore. Previously, he was sparkling director for the company’s ASEAN business unit. According to the company, Blume has a detailed knowledge of the company’s business across the region and has driven growth and innovation across the company’s stills and sparkling beverage brands.

    He is also a strong supporter of integrating sustainability into the company’s portfolio of brands. Coca-Cola said Blume was “at the forefront” of the company’s introduction of a prominent “Recycle Me” call-out across all its packs as well as the move across Southeast Asia to switch its iconic Sprite brand to clear, transparent bottles which are easier to recycle. He has 24 years of international marketing experience including 21 years at Coca-Cola and three years at Danone. Blume has also held local, regional, and global roles in a range of markets across Asia, North America and Europe.

    “Blume brings a tremendous passion for marketing and people plus a superb knowledge of our bottling system,” said Claudia Lorenzo, president, Coca-Cola ASEAN and South Pacific, said. According to her, Blume also brings a combination of consumer centricity, marketing curiosity and business acumen – strengths that Coca-Cola needs and values deeply in our marketing organisation.

    Separately, on the public affairs and communications front, the company named Russell Mahoney its VP, public affairs, communications and sustainability in March. He now leads the team across ASEAN, Australia, New Zealand, and the South Pacific and looks to address “some big sustainability issues” in the company. Mahoney said in a LinkedIn post that he will be moving to Singapore in the coming months.

    With the metaverse being all the rage these days, Coca-Cola also launched a pixel-flavoured drink, the limited-edition Zero Sugar Byte, which will rolle out first in the metaverse before making its way into physical retail. Coca-Cola describes the Zero Sugar Byte as the first Coca-Cola flavour to be born in the metaverse, which will bring the flavour of pixels to life in a limited-edition beverage that transcends the digital and physical worlds. The Zero Sugar Byte is the company’s second release from its Coca-Cola creations hub, following its release of its Starlight “space-flavoured” Coke in March this year.

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  • Coca-Cola opens London flagship store

    Coca-Cola opens London flagship store

    Coca-Cola has opened the doors to its first flagship store in Europe today, in a vote of confidence for the West End. After a number of stores in the US, including the beverage titan’s home territory in Atlanta, Coca Cola is testing the waters with a UK experiential destination.

    The store is set to be open until September at the moment, as bosses trial a direct-to-consumer store format in Europe for the first time.

    Shoppers will be able to purchase limited-edition merchandise, including fashion collaborations with Staple and Lees.  Other collaborations include designers such as Soho Grit, Alma de Ace, BAPE, Herschel, and BE@RBRICK.

    Visitors can buy mocktails made with Coca-Cola products at a dedicated beverage bar – drinks on the menu at the moment include Winners Circle, Mango Sunset, and an Orange Lolly Float. There is also an opportunity for shoppers to design customized drink cans, with personalized messages on.

    Michelle Moorehead, vice president of licensing and retail, said the store would give shoppers “fresh ways to experience our drinks.”

    “Through a collection of products made from recycled materials, it also gives us a great opportunity to share our sustainability commitments with people and bring them with us on our journey to a World Without Waste,” she added.

    It comes as retail goliaths have continued to be keen to stake a physical presence in the West End, despite the departure of big names such as Topshop.

    Furniture giant Ikea is set to open up shop, after buying Topshop’s former flagship store on Oxford St for £378m.

    “I don’t think [high street shopping] necessarily is dying, it’s changing,” Alex Loizou, the co-founder of online boutique marketplace Trouva said. earlier this year. “Offline becomes more about the experience and something different. Online is driven by transactional behavior.”

    In recent years, the Apple and Nike stores have become weekend destinations for many, Loizou explained. “People will go into those destination spaces to just experience it and look at physical objects up close, even if people don’t buy them there,” he said.

    Earlier this week, Coca-Cola Co surpassed quarterly revenue expectations after raising prices and the reopening of theatres and restaurants.

    In results published on Monday, the firm said demand for soft drinks had come back with zest after entertainment and hospitality venues had reopened with the easing of Covid restrictions.

    Net revenue lifted 16 per cent to $10.5bn in the first quarter of the year, beating analyst expectations of $9.83bn, according to Refinitiv data.

    However, the soft drinks titan warned its suspension of operations in Russia would result in a hit to annual profit worth four cents per share.

  • Coca-Cola, the world’s worst plastic polluter, makes reusable pledge

    Coca-Cola, the world’s worst plastic polluter, makes reusable pledge

    The Coca-Cola Company on Thursday said it will aim for 25% of its packaging globally to be reusable by 2030, a move hailed by environmental groups who have called out the soft-drink maker for worldwide plastic pollution.

    Coca-Cola is a top target for consumer, investor, and environmental groups concerned about petroleum-based plastic single-use bottles clogging oceans, among other problems.

    The company was the world’s worst plastic polluter for the fourth year in a row in 2021, according to the global coalition Break Free From Plastic’s annual report released in October.

    “We hope that other companies will follow Coke’s leadership and set reusable packaging targets,” said the group’s global corporate campaign coordinator Emma Priestland.

    Reusable packaging includes containers that can be refilled with original products by companies or consumers, such as refillable fountain drink containers and glass and plastic bottles that are refillable or returnable, the cola maker said, referring to reuse guidelines by nonprofit Ellen MacArthur Foundation.

    In 2020, 16% of the company’s packaging was reusable. That year, 90% of its refillable glass and plastic containers were collected, it said.

    Coca-Cola’s announcement on Thursday is “the first known goal of its kind” and “a welcome change in strategy,” fund manager Green Century Capital Management said in a statement.

    Green Century and activist investor As You Sow filed a shareholder proposal urging Coca-Cola to reduce single-use plastic. They are now considering whether to withdraw their proposal.

    If Coca-Cola hits its new goal, it will be “easier to achieve our objectives of a World Without Waste, where we intend to collect back a bottle or can for every one we sell by 2030,” Chief Executive Officer James Quincey said during the company’s fourth-quarter earnings call Thursday.

    Eight in 10 American adults support government policies to reduce single-use plastic, according to a poll released on Wednesday by advocacy group Oceana.

    Coca-Cola, PepsiCo and other international brands in January called for a global pact that included calls to cut plastic production, a key growth area for the oil industry.

    Break Free From Plastic cleaned beaches in 45 countries and found nearly 20,000 Coca-Cola branded products, more than the next two largest plastic polluters – PepsiCo Inc and Unilever PLC – combined.

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  • Coca-Cola to fully acquire Gatorade rival BodyArmor for $5.6 bln

    Coca-Cola to fully acquire Gatorade rival BodyArmor for $5.6 bln

    Coca-Cola said on Monday it would buy the remaining stake in BodyArmor it did not already own for $5.6 billion, as the soda maker amps up its sports drink portfolio to take on market leader, PepsiCo Gatorade.

    The deal marks a shift in strategy for the world’s largest beverage maker after it spent the last year offloading or discontinuing brands, including its own energy-drink brand, to focus on Coca-Cola sodas.

    The deal, which values BodyArmor at about $6.59 billion, is Coca-Cola’s largest for a single brand; It comes about three years after the company bought British coffee chain Costa for $5.1 billion.

    BodyArmor, which markets itself as an electrolyte-filled energy recovery drink for athletes, currently makes about $1.4 billion in annual retail sales and has a 50% growth rate, Coca-Cola said.”It gives Coke a strong stable of products in the rapidly growing sports hydration category. It’s a nice premium brand that has an opportunity for expansion over time,” Edward Jones analyst John Boylan said about BodyArmor that gained popularity after basketball star Kobe Bryant backed it in 2013.

    However, Boylan believes the massive deal would only “give Coke a solid No. 2 position in an attractive category”.

    Coca-Cola, which had first acquired a 15% stake in BodyArmor in 2018, said the brand’s co-founder Mike Repole will stick around after the deal to advise on the marketing and packaging of products.

    At the time Coca-Cola took its initial stake, BodyArmor was valued at $2 billion, according to a Sunday Wall Street Journal.

    The deal comes as Coca-Cola and rival PepsiCo face immense supply chain bottlenecks, forcing the companies to raise prices to counter higher freight and raw material costs. PepsiCo has even said it has had to deal with a shortage of Gatorade bottles.

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  • Coca-Cola says new ‘No Sugar’ has the same flavour as Classic Coke

    Coca-Cola says new ‘No Sugar’ has the same flavour as Classic Coke

    In much the same way plant-based meat companies are tweaking their offerings to make them taste more like the real thing, beverage giant Coca-Cola is doing the same thing with its no-sugar cola.

    Coca-Cola has a vested interest in creating a no-sugar variety that mirrors its sugar-laden offering as a way to keep people associated with the brand. Consumers are drinking less soda as part of a broader effort to cut their sugar intake, and increasingly no sugar offerings are a more popular option.

    If consumers decide they want to drink less soda with sugar, and a no-sugar offering has the same flavor as the original, they are more likely to turn to their preferred brand. Sales of Coca-Cola Zero Sugar have been a bright spot for Coke, and the company no doubt is hoping the new flavor profile will attract more customers to the product. The new version is already on shelves across Europe and Latin America, and will roll out globally during 2021.

    “In order to continue to drive growth of our diets and lights category, we must keep challenging ourselves to innovate and differentiate just as other iconic brands have done,” Natalia Suarez, senior brand manager for Coca-Cola’s North America operating unit, said in a statement. “The consumer landscape is always changing, which means we must evolve to stay ahead.”

    No-calorie Coca-Cola Zero Sugar is sweetened with aspartame and acesulfame K. Finding a sweetener that can replace sugar’s texture and taste has been difficult for companies. Some companies have used aspartame, but many consumers stopped drinking diet soda because of concerns over the health impact of the artificial ingredient.

    Coca-Cola seems to have found the right ingredient mix for its no-sugar products. According to Euromonitor International data cited by The Wall Street Journal, Diet Coke had 35% of sales in the $22 billion global diet category in 2019 and Coke Zero Sugar had 22%.

    Coca-Cola also is making a big change in the packaging it uses for Coca-Cola Zero Sugar. The new can has the same design as its its popular Coke soda, but uses different colors and the words “zero sugar” to indicate the absence of the sweetener. The new, simpler packaging is smart in that it keeps the brand, which is trying to emulate regular Coke, with the same design scheme as the original — but gives it just a bit of its own identify to stand out on store shelves.

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  • Coca Cola Australia ways into first alcoholic beverage

    Coca Cola Australia ways into first alcoholic beverage

    Coca-Cola Australia has launched a drink unlike any other it has produced before.

    For the first time, the company will enter the alcohol market with its Topo Chico Hard Seltzer which blends sparkling water with alcohol and natural flavor.

    The hard seltzer category has seen huge growth over the last 12 months and the soft drink giant also wanted to jump on the bandwagon.

    Coca-Cola South Pacific vice president Robert Priest said their beverage will have a great appeal to those drinkers looking for something new and refreshing to enjoy.

    “We have a fantastic product in Topo Chico Hard Seltzer which is backed by fans in Latin America and Europe and we’re confident Australians will love the light, refreshing taste,” Mr. Priest said.

    He said the company is “very good at finding drinks” and finding a new direction, and understanding what people want to drink as well.

    The hard seltzer category has blown up in recent time with the IRI predicting sales in Australia could be as high as $300 million by 2025.

    The publication explained its appeal comes from its reported health and wellness profile and how it usually contains less than 100 calories and generally has a lower ABV at around 4-5 percent.

    Seltzer water is carbonated water, and a replacement for soda and other sugary drinks that can increase the chances of conditions such as obesity and type 2 diabetes.

    The new alcoholic beverage will be available in three flavors: Tangy Lemon Lime, Pineapple Twist, and Strawberry Guava — with each can containing 4.7 percent alcohol by volume (ABV) and under 104 calories.

    Its description reads that its also gluten-free with no artificial sweeteners.

    Dietitian Leanne Elliston said at the end of the day consumers need to be made aware it’s still alcohol.

    “There is absolutely no nutritional value in hard seltzers and as such, they do not contribute to a healthy diet whatsoever,” she said.

    “It would be a concern if younger Australians thought it was a healthier way to drink.

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  • Coca-Cola the latest global brand to ‘Adopt a Park’ in Brazil rainforest

    Coca-Cola the latest global brand to ‘Adopt a Park’ in Brazil rainforest

    Coca-Cola Co on Wednesday agreed to sponsor a protected reserve in the Amazon rainforest, joining beer maker Heineken and a growing list of global corporations signing up to the Brazilian government’s “Adopt a Park” program.

    Environmentalists say that the program, launched by the right-wing government of President Jair Bolsonaro this year, amounts to “greenwashing,” or a cosmetic move aimed to improve the government’s image, at a time when deforestation is soaring.

    Acting via its Brazilian subsidiary, Coca-Cola is the eighth company to join the program by adopting the Javari-Buriti Area of Relevant Ecological Interest for 658,850 reais ($122,109) for a period of one year.

    The park occupies 132 square kilometers in the remote western portion of Brazil’s Amazonas state and includes one of the densest formations of Buriti palm forest in the world.

    Heineken earlier this month pledged 466,900 reais to sponsor a 93 square kilometer Amazon reserve that is home to a traditional community of escaped slaves in Maranhao state.

    More than 11,000 square kilometers were deforested in Brazil’s Amazon in the 12-months through July 2020, an area 14 times the size of New York City, according to the latest annual data available from government space research agency Inpe.

    Environmentalists blame the surgeon Bolsonaro, who has weakened environmental enforcement agencies and called for more development in protected areas. Adopt a Park is only an attempt to improve the government’s image, they say.

    “The government should reverse the environmental dismantling … instead of this program which opens up a huge space for greenwashing and doesn’t solve the problem,” said Cristiane Mazzetti, a conservationist with advocacy group Greenpeace Brasil, in a statement.

    The Environment Ministry and parks service ICMBio did not respond to requests for comment on that criticism. The ministry said the funds would pay for infrastructure improvements and environmental conservation, without giving further details.

    Coca-Cola Brasil said adopting the park is part of its long track record of conservation in the Amazon, without responding to questions about greenwashing.

    Heineken did not immediately respond to the request for comment.

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  • Coca-Cola Amatil shareholders approve European takeover

    Coca-Cola Amatil shareholders approve European takeover

    Shareholders at Coca-Cola Amatil have voted “overwhelmingly” to approve Coca-Cola European Partner’s $13.50 per share takeover offer. The vote was held at 10 am on Friday, April 16, and saw 97.6 percent of shares proxy vote in support of the takeover – representing about 62 percent of total shareholders in CCA.

    Only 0.9 percent of votes were against the takeover.

    “Today is a significant day in the 117-year history of Coca-Cola Amatil,” said chairman Ilana Atlas.

    “I am excited by the possibilities that lie ahead for Coca-Cola Amatil’s future, and know I speak on behalf of the board when I say that it has been a privilege to be part of the Coca-Cola Amatil journey.”

    The takeover means CCA’s brands, which include Coca-Cola, Mount Franklin, Pump, Goulburn Valley, Monster Energy, Barista Bros, Blue Moon and Rekorderlig will now be owned and operated out of Europe.

    The takeover also means the Atlanta-based Coca-Cola Company will see its financial interest in CCA vanish.

    Shares in CCA fell after the vote, as it became clear shareholders would be receiving the “best and final” offer from CCEP.

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  • 7-Eleven and Coca Cola launch Hong Kong concept store

    7-Eleven and Coca Cola launch Hong Kong concept store

    7-Eleven has teamed with carbonated beverage brand Coca Cola to open a new themed store in Hong Kong. Located at in Tsim Sha Tsui, the 7-Eleven x Coca Cola concept store is dressed in the distinctive Coke red. As well as the modern Coke livery, the counter features a banner with nostalgic advertising.

    The store features two fridges with Coca Cola’s glass-bottle-shaped doors, displaying a selection of the brand’s items and collectibles.

    “7-Eleven x Coca Cola themed store is a close collaboration with our suppliers leveraging on the brand strength and features to create a themed convenience store with impactful in-store decoration, interesting display, exclusive products, innovative food idea, good value offer to bring customers fun and convenience,” a spokesperson for 7-Eleven Hong Kong’s parent company Dairy Farm Group said.

    The store also features a ‘Hot Shot counter’ where customers can pause and eat snacks (and a Coke).

  • Morphe launches Coca Cola cosmetics and accessories

    Morphe launches Coca Cola cosmetics and accessories

    Beauty brand Morphe has teamed up with Coca Cola to launch a new makeup collection.

    Different to Morphe’s usual partnerships with famous beauty gurus such as Jaclyn Hill or Jeffree Star, the co-branding with Coca Cola has marked one of the brand’s biggest collabs.

    Called Thirst for Life Collection, the new beauty line will feature products designed with Coca Cola’s label, including lip glosses, an eyeshadow palette, highlighters and brushes.

    “The Thirst For Life Artistry Palette, in particular, was inspired by the full experience of drinking a Coca Cola – from the green glass of the bottle, to the blues of ice, to the colours of the actual liquid beverage,” the company said in a statement.

    Morphe is not the first beauty brand to collaborate with Coca Cola. The US soft drink brand teamed up with The Face Shop to launch a beauty collection in South Korea.

    The Morphe x Coca Cola Collection was launched today, June 18, with all products priced under US$30.

  • Coca-Cola Vietnam fined for tax evasion

    Coca-Cola Vietnam fined for tax evasion

    Coca-Cola Vietnam has been ordered to pay VND821.4 billion ($35.4 million) in back taxes and penalties stretching back over nine years.

    Dang Ngoc Minh, deputy head of the General Department of Taxation, said 57.3 percent of the amount is the back tax, 35.2 percent is a penalty for delayed payment and the remaining 7.5 percent is a penalty for incorrect filing.

    “The company can request a review or file a lawsuit.”

    A Coca-Cola spokesperson said tax authorities had recently concluded an investigation of the 2007-15 business period, and found the company had made “minor errors” in describing its business operations which had led to a failure to file for taxes.

    Though it disagrees with some of the tax authorities’ conclusions, the company would nevertheless comply with the laws, he said.

    But an official from the Ho Chi Minh City Tax Department said Coca-Cola has only paid VND38.2 billion ($1.6 million) as of Thursday.

    Coca-Cola entered Vietnam in 1994, and broke even only in 2013 despite double-digit revenue growth, according to the department.

    Since the company reported accumulated losses of VND3.77 trillion ($162.5 million) as of 2011, it was exempt from corporate income tax.

    HCMC has named Coca-Cola among businesses it suspects of transfer pricing fraud to evade tax.

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  • Coca-Cola North America pilots subscription service to test new products

    Coca-Cola North America pilots subscription service to test new products

    Soft drinks giant Coca-Cola has launched a new subscription service in North America to test out over 20 new drinks.

    The Coca-Cola Insiders Club invites subscribers to sign up for a monthly shipment of three category-spanning beverages to be released in early 2020. A thousand memberships sold out in three hours following the announcement.

    “We’re absolutely thrilled to see how quickly the spots went, which shows just how passionate consumers are about our brands and innovations. It proves there is an opportunity to scale the concept and allow more people to participate,” said Alex Powell, a digital experiences manager, Coca-Cola North America.

    The soft drinks giant said the move was prompted by the phenomenal growth in the e-commerce subscription market which has doubled annually over the last five years.

    Subscribers can choose from two payment options for the six-month membership, US$10 per month or US$50 prepaid (one month free).

    “As a total beverage company, we’re constantly looking for ways to innovate not only in our products – but also in the consumer-centric experiences we offer,” said McCrea O’Haire, digital experiences manager, Coca-Cola North America.

    “People want choice, convenience and customization. The Insiders Club will allow us to showcase the diversity of the drinks we offer and get some of our newest innovations into the hands of fans who want to be among the first to enjoy them.”

    The launch of the limited-edition Coke Cinnamon in the region prompted a big response from consumers and provided valuable insights to the beverage giant.

    Coca-Cola North America said it will monitor sales, feedback and social media buzz and may consider expanding beyond the six-month trial period.

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  • Coca-Cola looks at Indian chain Cafe Coffee Day to invest

    Coca-Cola looks at Indian chain Cafe Coffee Day to invest

    Beverages giant Coca-Cola is negotiating the acquisition of a large stake in Indian chain Cafe Coffee Day (CCD) as part of a move to gain traction in the territory against a drop in demand for carbonated drinks.

    Executives expect the deal, if it goes ahead, to hedge risks for the firm by taking advantage of a growing market sector in the territory.

    “The potential stake acquisition is being driven by Coca-Cola’s headquarters in Atlanta and officials from the beverage maker’s global team are engaged in active talks with the Coffee Day management,” said an executive with knowledge of the matter. “It would give Coca-Cola a significant scale in the fast-growing cafe business, compared to aerated soft drinks, which have been slowing down.”

    Coca-Cola has claimed that news of the potential deal is speculative.

    CCD is India’s largest coffee chain, with 1752 locations as of March this year. Starbucks India, by contrast, operates just 146 stores.

    “Cafe Coffee Day introduced India to the café culture back in the 1990s and has been able to build a massive footprint,” commented private equity professional Jaspal Sabharwal, “but the chain badly needs some innovation and facelift. There has been plenty of innovation in the cafe industry in recent years, but not enough of it has come from giant brands. Coca-Cola can play a very good role in this space.”

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  • PepsiCo franchise rights to be acquired in South, West India

    PepsiCo franchise rights to be acquired in South, West India

    PepsiCo India’s bottling partner Varun Beverages Monday said its board has approved plans to acquire franchise rights of the beverages and snacks major in South and West regions. The board has approved the company’s intent to enter into a binding agreement with PepsiCo India Holdings to acquire franchise rights in the two regions for a national bottling, sales and distribution footprint in seven states and five UTs, Varun Beverages Ltd (VBL) said in a regulatory filing.

    According to a report, upon completion of these acquisitions, VBL will be a franchise of PepsiCo beverages business across 27 states and seven Union Territories (UTs), it added.

    “The proposed acquisitions are in line with the company’s strategy to expand into contiguous territories and will help to acquire greater scale, operational productivity and efficiency leading to higher revenues and profitable growth,” it said.

    VBL, however, did not disclose financial details of the proposed acquisitions.

    The company further said its board will meet on February 26 to consider raising of capital through Qualified Institutions Placement (QIP).

    Last year in January, VBL had entered into a pact with PepsiCo to sell and distribute the latter’s entire Tropicana range of juices along with Gatorade and Quaker Value-Added Dairy in North and East India.

    VBL already held manufacturing, sales and distribution rights for Tropicana Slice and Tropicana Frutz in the two regions.

    PepsiCo had then stated that North and East regions together accounted for 80 percent of the juice market in India and VBL’s contiguous reach would help it more than double the distribution reach in these states.

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