Coca-Cola Brews Up Big Plans for US Ready-to-Drink Coffee Category

1476889153008Coca-Cola North America is brewing up a multi-brand strategy to compete more aggressively in the piping-hot cold coffee category.

Early 2017, the company will roll out a range of diverse yet complementary ready-to-drink (RTD) coffee offerings. Gold Peak, a billion-dollar iced tea brand in the U.S., will introduce two flavours of both cold-brew coffees (Salted Caramel and Almond Toffee) and bottled tea lattes (Chai and Vanilla) in early 2017.

Coca-Cola also will produce, distribute and market a line of Dunkin’ Donuts-branded iced coffee beverages, which will be sold in grocery stores, convenience stores and in Dunkin’ Donuts restaurant. Four flavours – Original, Mocha, Espresso and French Vanilla – will be offered in re-sealable PET bottles.

illy-issimo-couponThese new brands will join illy issimo (a premium RTD coffee brand), and Java Monster (a hybrid coffee and energy drink produced by Monster Energy and distributed by Coca-Cola) in Coca-Cola North America’s expanding RTD coffee portfolio.

“We’re excited to offer coffee consumers a variety of great-tasting, high-quality offerings to enjoy throughout the day,” said Geoff Henry, vice president, coffee and tea, Coca-Cola North America. “Each of these brands has its own unique taste and identity, so we expect minimal overlap or cannibalization.”

Coca-Cola is the global value share leader in RTD coffee, driven largely by the success of the Georgia Coffee trademark in Japan, one of the category’s largest markets.

java-monsterIn the U.S., the multi-billion-dollar RTD coffee category has been growing by double digits annually since 2011 and shows no signs of slowing down. Canned and bottled coffee is a natural extension of the premium java culture in the U.S., which has been fuelled in recent years by the growing popularity of iced and cold-brewed varieties. RTD coffee brings the cafe to the store shelf and satisfies consumer cravings for a convenient pick-me-up to enjoy at home or on the go, Henry said.

“The demand for coffee of all varieties cannot be overstated,” he said.

Coca-Cola North America will promote its new and existing coffee brands through retail sampling, in-store merchandising and advertising through a variety of mediums. Down the road, Henry said RTD coffee has the potential to be a platform for product and packaging innovation.

“This is a big bet for us, without question,” he concluded. “And we’re confident we have the right strategy in place to capture the tremendous opportunity we see ahead.”

Source: Coca-Cola

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