Bisleri
Bisleri Wants Customers To Know Its Bottled Water Brand Name Is Not Generic
Indian beverage company Bisleri has at last begun to address an image – and retailer behavior – problem that has affected its sales: over the years the name Bisleri has become nearly generic for virtually any brand of bottled water. And retailers have taken advantage of that situation. To deal with the problem, the company has launched an ad campaign featuring camels at a remote desert shop. Consumers in the ad demand a bottle of Bisleri, even as the shopkeeper offers another brand. A Bisleri marketing executive said the brand had been tinkering with the problem,eventually deciding to solve it at the seller/shopkeeper's end. Shopkeepers offering alternatives to Bisleri are "depriving consumers of their brand of choice because they want a higher profit margin.” The company realized that it's the profit margins that influence retailer behavior.
Coca-Cola
Coca-Cola Brazil Expand Commitment To Returnable Bottles
Coca-Cola Brazil hopes to increase the use of returnable bottles from 20 percent to 40 percent over the next two years, and has invested another $26 million to roll out universal formats with detachable labels to improve recyclability, reduce waste, and improve carbon footprint. The company launched the returnable bottle initiative in 2008 with several brands, including Coca-Cola, Grape Fanta, Sprite, and Guarana Jesus, among others. Consumers can return empty bottles to stores and receive newly filled bottles at a reduced rate. The returned bottles can be re-used 25 before final recycling. The program was launched in São Paulo and the Northeast of Brazil, and will be expanded to Rio de Janeiro and eventually Chile, Argentina, Uruguay, Colombia and Mexico.[Image Credit: © Coca-Cola]
New Flavors, Packaging, Ad Message Lead To Diet Coke Sales Turnaround
Last year, Coca-Cola decided not to abandon the slumping Diet Coke brand, choosing instead to launch a product and marketing makeover, the biggest since its debut in the early 1980s. The decision to introduce new flavors, revamp packaging, and focus a new marketing message on broadening the brand's traditional consumer base has paid off. According to Nielsen data, U.S. dollar sales for Diet Coke were up more than two percent through the last week in October, after having fallen 3.7 percent in the 52 weeks ending Dec. 2, 2017. Part of the turnaround was due to Coca-Cola’s marketers giving Millennials and other young consumers “permission to try Diet Coke,” one industry observer said.
Coca-Cola Continues CCBA Refranchise Talks
Coca-Cola is involved in ongoing discussions to refranchise bottler Coca-Cola Beverages Africa. The company acquired Anheuser-Busch InBev's 54.5 percent stake last year, and is now negotiating with several potential buyers in hopes of closing a deal in 2019. "Coca-Cola Co. views the Africa market as extremely important to the long-term success of the company and will continue to work to find the right partner for the long term," a spokesman said. A-B InBev acquired the stake in CCBA when it bought previous owner SABMiller two years ago.
Sale Of Cannery SPC Would Free Coca-Cola Amatil To Focus On Beverage Growth
Australian bottler Coca-Cola Amatil (CCA) has decided to divest the loss-making SPC fruit and vegetable cannery it purchased in 2005 after years of struggling to make it profitable. Analysts believe the sale would give CCA the cash it needs to invest in new business areas, such as acquisition of some parts of Lion Dairy & Drinks, and right itself after some setbacks. Earnings for 2018 are likely to be hurt by weaker beverage sales in Australia, soft demand in Indonesia, and the impact of container deposit schemes that have forced the price hikes in several states and Canberra. The company is expected to concentrate on growing categories like energy drinks and flavored milk and smoothies, increasing marketing efforts for what he called “sleeping beauties and blockbuster” lines, and introducing more enhanced and premium options.
Danone
U.K. Business Leaders Urge Government To Set Long-Term Emissions Goals
Coca-Cola European Partners, along with other big food, consumer goods, and utilities companies, are urging the British government to set a goal of net zero emissions by 2050. The letter, which marks the tenth anniversary of the U.K.’s Climate Change Act, says that U.K. emissions have fallen by 40 percent over this time. Nevertheless, the government should set clear long-term goals so that businesses can plan for long-term success; and manage a smooth transition over time. The Prince of Wales Corporate Leaders Group also includes Danone, Unilever, Anglian Water, IAG, ScottishPower, Signify U.K. & Ireland, and Thames Water Utilities Ltd.
Nongfu Spring
Nongfu Spring Among Fastest Growing Consumer Goods Companies In China
According to data from Kantar Worldpanel, consumer brands like Nongfu Spring, Haday, and Dali are the fastest growing in China, each with more than a five percent increase in market penetration in their segments among young consumers, despite an aging population. Bottled water and beverage company Nongfu Spring grew its shopper base among Millennial singles and couples by 30 percent in the last 12 months through the launch of its "Victory" vitamin water. It garnered popularity among young consumers b y sponsoring the hit reality show ‘Idol Producer.' Coca-Cola hopes to grow in the Chinese market by selling smaller packages and new product lines such as fiber drinks to balance demands from young consumers for both nutrition and good flavor. Overall, P&G and Yili were the top two companies with the widest consumer bases, reporting 92.4 percent and 90.9 penetration among urban consumers.
Other Companies
Will Camel Milk Become The Alternative To Cow Milk That Consumers Are Looking For?
A U.S.-educated Saudi entrepreneur believes that camel milk is the answer to the quest for an alternative to cow milk, one of the top eight food allergens in the U.S. With that in mind, Walid Abdul-Wahab met with Amish and Mennonite farmers who raise camels on farms in Pennsylvania, Ohio, Colorado, and Missouri, then launched Desert Farms to sell camel products through its website and via health food shops and supermarkets. Amish and Mennonite farmers breed and sell camels for upwards of $25,000 each, and also lease them to zoos and churches. When Abdul-Wahab made contact in 2014, nobody was selling camel milk commercially. But it was an uphill battle to get the farmers on board, because the Amish do not believe in contracts. But now business is booming: Desert Farms sells around 630 gallons of camel milk a week.
Keto Coffee Trend Gathers Momentum
Thanks to the popularity of the high-fat, low-carb keto – for “ketogenic” – diet, coffee shops, cafés, restaurants, and even grocery stores, are offering coffee blended with fats of all kinds, but especially grass-fed butter and coconut oil. Grocery stores have been stocking up on RTD “butter coffees,” creamers, and additives. The Picnik brand of butter coffee, for example, comes in four different varieties. Know Brainer’s portable, single-serve packets of creamers contain butter, buttermilk, and coconut oil that add 200 calories and up to 21 grams of fat to a cup of coffee. A survey of 3,000 consumers found that six percent followed a keto diet in the past year: twice the amount for paleo and vegan diets.
British Meal Replacement Company Huel Launches RTD Protein Beverage In U.S.
U.K. meal replacement marketer Huel, whose products launched in the U.S. in 2017, has entered the RTD protein market with the debut of a fully recyclable 16.9-ounce bottle. The products come in vanilla and berry flavors, each containing 20 grams of plant-based protein, available online on December 28. Huel’s line of powdered meal replacements contain oats, pea protein, flaxseed, brown rice protein, MCTs from coconut, sunflower lecithin, and 27 minerals and vitamins. The company received its first external investment of $26 million from growth equity firm Highland Europe to “accelerate growth” by expanding its product portfolio and entering new markets. Huel reached $10 million in sales as of June 2018, its first year in the U.S.
Costa Coffee Uses Barclays’ Wearable Chip Technology In Its “Clever Cup”
Retail coffee chain Costa Coffee is launching the U.K.'s first reusable coffee cup equipped with contactless payment technology. The “Clever Cup,” launched in partnerhip with Barclaycard, will be available in Costa Coffee stores as part of a relaunch of Costa's reusable range to encourage customers to avoid single-use takeaway cups. The new cup is powered by Barclaycard's bPay technology, a contactless payment technology that tracks user spending using the dedicated bPay app or online. The contactless element is detachable for ease of washing. According to Barclays, its wearable chip technology allows almost any accessory to be transformed into a smart payment device.[Image Credit: © Costa]
Britain’s Sugar Tax Levy Helps Britvic’s Low-Calorie Brands
The U.K.’s imposition of the Soft Drinks Industry levy benefited Britvic’s portfolio of low- and no-sugar brands, including Pepsi Max, Robinsons, 7UP Free, J2O, and Tango, all of which saw revenue growth during the fiscal year ended September 30. Overall, the company posted a five percent increase in revenue to $1.9 billion and a five percent increase in pre-tax profit to $149 millionfor the year ended September 30.
Campbell To Sell Bolthouse Farms, Continue Exit From Fresh Foods Business
Campbell Soup is casting its net wide for potential buyers of its money-losing carrot, smoothie and fruit beverage company Bolthouse Farms, continuing its withdrawal from the fresh food industry that proved to be a poor fit. The company distributed the financial books for Bolthouse, and has begun the process of divesting its Garden Fresh Gourmet business, purchased in 2015 for $231 million. Among the potential buyers for Bolthouse is former Bolthouse CEO Jeffrey Dunn, who has talked to private equity funds to help raise money to fund a bid. Campbell paid $1.55 billion for Bolthouse Farms in 2012, when the brand had more than $100 million in earnings before interest depreciation and amortization.
Unilever Wins Bidding For GSK’s Indian Health Beverage Products
Unilever is buying the Horlicks nutrition business from GlaxoSmithKline for $3.8 billion, a move that boosts its position in India. Th purchase of the popular Horlicks malted milk line provides an opportunity for Unilever to increase its scale in India in food and drinks. The acquisition, which includes GSK’s health food and drinks portfolio in India, Bangladesh and 20 other predominantly Asian markets, is a victory over rival Nestlé. Coca-Cola had also been interested in Horlicks at one time. The GSK portfolio has annual sales of around $623 million, primarily through the malt-based Horlicks and Boost brands.
Merger Of New Age Beverages, Morinda Creates $300 Million Company
Two-year-old Denver-based New Age Beverages Corporation has signed an agreement to acquire Morinda Holdings, Inc., a Utah-based beverage company with operations in more than 60 countries around the world, for $85 million. Morinda, a direct-to-consumer and e-commerce business, was founded in 1996 and maintains manufacturing operations in Tahiti, Germany, Japan, the U.S., and China. The company works with more than 160,000 independent distributors worldwide. About 70 percent of its business is generated in Japan, China, Korea, Taiwan, and Indonesia. The merger creates a non-alcoholic beverage company – selling new age health sciences products and CBD-infused beverages – with $300 million in net revenue, $20 million in adjusted EBITDA, $200 million in assets, no debt, and $40 million in cash and working capital.
PepsiCo
Pakistan Expects Another $1.4 Billion In investment From PepsiCo, Coca-Cola
The office of Pakistan Prime Minister Imran Khan issued a statement saying that PepsiCo and Coca-Cola have committed to investing an additional $1.4 billion in the coming years. The country is beset with economic and financial problems, especially a swelling current account deficit that has pushed it to seek loans from China and Saudi Arabia and a bailout from the International Monetary Fund. According to the prime minister’s office, PepsiCo will invest another $1.2 billion over the next five years, while Coca-Cola will invest $200 million on top of the current $500 million. Despite Pakistan’s economic woes, consumer goods companies see the world’s sixth most populous country (208 million people) as a promising market.
ThaiBev
Thailand’s Economic Woes Send ThaiBev’s Profit Sliding
Full-year profit of Thai Beverage (ThaiBev) dropped by nearly half to $77 million, despite a 12-month revenue increase of $9.56 billion (21 percent). Spirits business profit slid 13.2 percent, largely because of a drop in EBITBA. Beer profit declined 10.4 percent because of higher finance costs, despite an increase in EBITBA. The non-alcoholic beverages business lost $51.76 million due to an increase in EBITDA loss. ThaiBev said both the alcoholic and non-alcoholic beverage markets in Thailand were affected by the drop in consumer purchasing power, thanks to a slowdown of the economy coupled with rising prices.
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