Adbrands Weekly Update 27th Apr 2017: The British government's proposed sugar tax, due to come into force in a year's time, could cost Coca-Cola well over £200m a year in additional expense, according to trade source The Grocer. That's far above any of its rivals, not just because of the company's local market leadership, but also the strength of its core red Coke product. Despite the popularity of Diet Coke and strong growth by Coke Zero Sugar, red Coke still accounts for half of the brand family's total volumes. By contrast, less than 30% of sales for the local Pepsi family are for full-sugar products. Under the proposed scheme, soft drinks will be taxed 24p per litre for products containing 8g or more of sugar per 100 ml, and 18p per litre for between 5g and 8g. Red Coke sold around 515m litres in 2016 through retailers and another 319m litres in pubs and restaurants. The £200m estimate doesn't include additional tax due on other drinks like mid-cal Fanta and Dr Pepper.
Adbrands Weekly Update 20th Aug 2015: Three of the world's biggest bottlers of Coca-Cola products are to merge to create a massive giant whose operations cover most of Western Europe. Coca-Cola Enterprises (CCE) currently manages Great Britain, Scandinavia, France and Benelux markets. Headquartered for tax purposes in the US, it is entirely independent of the Coca-Cola drinks company, although it bottles and distributes the latter's products under long-term license. Under the new arrangement, it will acquire its counterparts in Germany and the Iberian peninsula to create a new pan-European group with sales of over $12bn, to be called Coca-Cola European Partners. Significantly the deal allows CCE to shift its tax base out of the US and into the lower-rated UK, and also gives Coca-Cola Company - current owner of the German bottling business - an 18% holding in the enlarged group, which covers 13 countries and more than 300m customers. CCE chief executive John Brock will retain that role in the merged entity. The deal also raised questions about a possible future bid for part or all of Coca-Cola Hellenic, the separate group also based in London which manages bottling for Ireland, Italy and Austria, as well as most of Central & Eastern Europe.
Adbrands Weekly Update 3rd Apr 2014:
Industry watcher Beverage Digest published a gloomy analysis of the US liquid refreshment (LRB) market, saying that "challenging recent trends... continued and worsened in 2013". There were no such problems in the UK, according to the latest annual soft drinks report from Britvic, the local Pepsi licensee. Last year's summer heatwave pushed consumption to record levels. Volumes were up almost 2%, but the growing number of premium-priced products pushed up value, especially in the take-home market, by almost 4%.
Total value topped £10bn for the first time. Grocery and convenience store channels accounted for sales of £7.5bn, with another £2.9bn from on-trade pubs and clubs. Cola was still the biggest
seller, accounting for almost 22% of the retail market and 43% of on-trade. Juice and energy drinks were as usual the #2 and #3 take-home categories by value, but the most spectacular growth was seen in "cold hot drinks" like iced tea and coffee, with sales jumping by 47% year-on-year.
Coca-Cola continues to dominate the local market with 30% overall share to 20% for Britvic.
Adbrands Weekly Update 10th Oct 2013: Coca-Cola named Brid Drohan-Stewart as marketing director for Great Britain, filling a role that has empty since Zoe Howorth left in the summer.
Adbrands Weekly Update 2nd May 2013: Coca-Cola's UK marketing chief Zoe Howorth is taking a year's sabbatical from the drinks giant from June. Her successor has yet to be named.
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Who are the competitors of The Coca-Cola Company? See Non Alcoholic
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