Coca-Cola plans to launch Coke Coffee in 25 markets around the world by the end of the year
Recently, Coca-Cola CEO James Quincey said in an analyst conference call that after Coca-Cola successfully launched the Coke Coffee pilot in the Asian market last year, it plans to officially launch the product in 25 markets before the end of this year. This also means that for the first time, the Coca-Cola Company has added ready-to-drink coffee products to its eponymous brand product line.
It is understood that ready-to-drink coffee is the fastest growing category in the current coffee market. According to Mintel's data, from 2016 to 2017, the growth rate of ready-to-drink coffee products reached 31%; Euromonitor's data showed that by 2022, the global ready-to-drink coffee market is expected to grow by 3.1 billion US dollars. It will soon exceed bottled water and soft drinks.
This new beverage from Coca-Cola will be a combination of coffee and carbonated beverages with a lower caffeine content than coffee and higher than normal cola. Coca-Cola coffee was originally designed to be launched at around 3 pm when the consumer's energy is low.
In August last year, Coca-Cola announced the acquisition of the coffee chain brand Costa for $5.1 billion, and said it would complement Coca-Cola's existing coffee expertise with Costa's coffee supply chain, vending and distribution channels. The acquisition will be completed in the first half of this year.
Quincey said Coca-Cola's acquisition of Costa Coffee was in line with expectations: "Looking ahead to the second quarter, we will launch our first ready-to-eat Costa product and hope to hear more of this in the coming weeks."
Coca-Cola is also exploring another extension of the Coke Energy brand. Quincey said: "This will raise one of Coca-Cola's original brand advantages, that is, its energy boost to a new level and taste."
However, innovation is not limited to the Coca-Cola brand. Quincey added: “We are introducing other brands and entering new areas. For example, our leading juice company in Europe, Innocent, has expanded its business to botanical beverages. Simply put, in our challenger brand, we recently Launched a new milkshake line in the US premium juice brand."
In addition, Coca-Cola is also changing the way it works. Quincey said: “For example, Coca-Cola has created a new operating group, Global Ventures. Our goal is to accelerate some of our businesses, such as Innocent and Costa Coffee, which have growth potential across traditional boundaries.”
“Although the acquisition of Costa Coffee is an important entry point into the hot drinks market, it does not stop there. Costa is a platform for Coca-Cola to enter the coffee industry.”
It is understood that Coca-Cola's net income in the first quarter of 2019 increased by 5% to reach 8 billion US dollars.