CCA review delivers list of new health focused products
As it gets set to distribute the new stevia-sweetened soft drink Coca-Cola Life, the Australian food and beverage group Coca-Cola Amatil (CCA) has announced its own focus for production in the years to come will be on products that align with the increasing desire from consumers for ‘healthy’ and ‘premium’ products.
CCA is the Australian and New Zealand bottler and distributor for Coca-Cola South Pacific, which is the regional arm of US-based The Coca-Cola Company.
The Coca-Cola Company had announced in November 2014 that it would launch the new stevia-sweetened Coca-Cola Life in Australia and New Zealand in April 2015.
In November 2014, CCA announced the results of a strategic review of its business. The strategic review, announced at the Company’s Annual General Meeting in May 2014, was conducted in response to deteriorating market conditions across the Group with the objective of restoring CCA to sustainable earnings growth. Australian Food News reported in August 2014 that had announced a profit of $182.3 million for the first half of 2014, a drop of 19 per cent compared to the previous year before significant items.
CCA said it had identified and was addressing the following growing customer trends and segments “through investment in innovation, new product launches and marketing”:
- The increasing focus by consumers on health and well-being
- The increasing popularity and preference for premium products
- The growth of the value conscious/entry price consumer
- The growth of the coffee market
Other new products in the CCA pipeline
CCA said it also had other products in the pipeline, set to be launched over the next few months, that it hoped would capitalise on consumer preferences trends towards ‘healthier’ products and premium lines.
Other new products in the CCA pipeline to be launched over the next few months include:
Barista Bros Iced Chocolate
Following the successful launch of Barista Bros Iced Coffee, Barista Bros Iced Chocolate will be launching nationally on 31st March 2015.
Australian Beer Company: Yenda Craft Beer
CCA through its Australian Beer Company will launch its new packaged Yenda craft beer range on 27 March 2015 (the product is already available in draught). The Yenda range features 5 styles: Pale Ale, IPA, Golden, Red & Hell. CCA said craft beer was in growth globally but that the market was “under-developed” in Australia
CCA said the trend in the Australian beer market was towards premium, high quality products, and that ‘quality over quantity’ was the driving consumer trend.
Following the successful launch of Grinders’ Nespresso-compatible capsules in the last quarter of 2014, Grinders’ Caffitaly capsules were launched in Woolworths the on 9 March 2015.
CCA said Nespresso and the CCA brand Caffitaly were the two dominant players in this market with 20 per cent of at-home espresso machines utilising the Caffitaly format. It said that Aztec data had shown that coffee capsules were the fastest growing coffee segment in Woolworths and Coles supermarkets and account for almost one of every three dollars spent on roast and ground coffee (everything except instant coffee) in those two supermarket groups’ stores.
SPC ProVital, a new ‘easy-open’, portion controlled, 100 per cent Australian-sourced fruit packaged product will be launched in July 2015.
CCA said the product had been specifically developed for the healthcare market, in particular patients with swallowing difficulties. It will come in four diced variants (peaches, pear, fruit salad and two fruit), and three pureed fruit variants (apple, apple and apricot, and apple and peach).
Other recent initiatives to appeal to health consumer trends
Other recent CCA initiatives designed to address these customer trends include the launch of Zico Coconut Water, Perfect Fruit, SPC’s Fruit in coconut water, SPC’s Sneaky Veg, Henry Jones Fruit & Chia, Fanta Zero, the launch of 250 ml cans and SPC’s snack packs as well as the launch of Grinders coffee capsules, Peats Ridge in the value water category and Pressman’s craft cider in the premium product sector.
“Whilst there is no one new product that is a silver bullet we are very excited about the launch of Coke Life and continue to invest and focus on other new product launches across our entire product portfolio,” a CCA spokesperson said.
The significance of a new Coca-Cola branded product for CCA
CCA said the launch of a new product under a brand as big as Coca-Cola “generates excitement and newness among consumers and generates a halo effect across the entire Coke portfolio”.
The Company said it hoped to see increased consumer awareness, engagement and incremental purchase of Coke branded products, which it did when Coke Zero was launched in 2006. CCA said it hoped this would allow it to ‘reset its presences and leadership position in the market’.
The Company said the launch of a new product such as Coke Life will also allow it to reclaim prime positioning and space in retail outlets – for example product placement in fridges/coolers in-store will be reconstituted to include Coke Life. This will mean an increase in fridge space for Coke branded products.
CCA said the launch of the new Coke Life product also provided a ‘catalyst’ that will allow the Company to “create a legacy” around its glass bottles, smaller serving sizes and the premium positioning of its products. The Coke Life product will launch in premium glass bottles and in the smaller 250 ml cans, which have 68 calories or 285kjs per serve.
The Coke Life product will be available through grocery channels such as Woolworths, Coles and IGA supermarkets, as well as independent retail outlets such as milk bars, and convenience channels such as 7Eleven, Caltex, and non-fountain Quick Service Restaurants such as Subway and Red Rooster. The product will also be available through vending machines and licensed venues.
Other stevia products in the CCA product portfolio
In October 2014 IXL launched a new range of IXL brand spreads sweetened with Stevia. CCA said IXL sweetened with Stevia has “60 per cent less sugar” than IXL 250g jam.
Future plans for stevia-sweetened products
CCA said it was developing plans to launch other products that are sweetened with Stevia, including Stevia-sweetened Sprite, Stevia-sweetened Fanta, and SPC brand products such as jams, marmalades and other spreads.
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