A decade-long decline in U.S. soda consumption has left Coca-Cola thirsty for growth. Now it looks like the beverage giant has found one opportunity: smaller bottles and cans.
Sales of Coke’s 7.5-ounce “mini cans” and eight-ounce bottles have risen 9% this year, The Wall Street Journal reports. Compare that with sales of 12-ounce cans and two-liter plastic bottles, which are up a mere 0.1% over the same time frame.
The reason, according to Coke’s North America president, Sandy Douglas, has to do with health trends. Mr. Douglas said the smaller products — which only make up about a quarter of Coke’s overall packages — are attracting mothers conscientious about their children’s health.
“The health and wellness trend has set up, almost teed up, a tremendous opportunity for the Coca-Cola brand with our smaller packages,” Mr. Douglas said at a conference on Wednesday. “Consumers love it.”
And branding experts say Coke should seize on this opportunity in its marketing.
“Giving [consumers] choices to moderate their consumption by smaller indulgent treats is a smart way to allow people to still enjoy a Coke and manage the guilt,” said Allen Adamson, chairman of Landor North America.
Branding consultant Dean Crutchfield says Coke has entered celebratory drink territory and is no longer “something you expect to guzzle down like the old days.”
“It needs to position itself as a treat,” Mr. Crutchfield said. “That means that people aren’t going to be consuming it as much, but don’t forget, there are celebrations happening every day.” Still, growth will be difficult, Mr. Crutchfield says.
Overall, Coca-Cola spends $3 billion per year advertising 17 brands, and spent $109 million advertising its classic product during the first half of 2014, up from $56 million over the same period the year prior, according to Kantar Media.
Revitalizing Coke’s soda sales is no easy task, but part of that responsibility will fall on Marcos De Quinto, Coke’s recently appointed chief marketing officer.
No comments:
Post a Comment