Friday, October 31, 2014

Coke Freestyle Dispenses Insights Along With Soft Drinks

via AdAge

Coca-Cola Freestyle machines have been dispensing well over 100 combinations of carbonated and non-carbonated soft drinks for more than three years. But beyond that, the data they're generating is a fountain of marketing knowledge helping the beverage giant shape product offerings for itself and its foodservice customers, said Jennifer Mann, VP-general manager of Coke Freestyle, at the Advertising Age Data Conference Oct. 29.
Coca-Cola freestyle vending
Coca-Cola freestyle vending
Freestyle machines have poured more than 5 billion servings and thousands of flavor permutations, Ms. Mann said. A related mobile app that allows people to name and save their favorite combinations and then have Freestyle machines automatically pour them has had more than a million downloads.
The dispenser is giving some new life to old brands. "Before Freestyle, Caffeine-Free Diet Coke was available in less than 1% of our dispensers in the U.S.," Ms. Mann said. "Now with Freestyle it's available in every dispenser, and it's become a top-five brand in the afternoon daypart. So there was a huge unmet demand we were able to fill."
While the top eight Coca-Cola brands tend to stay fairly consistent from restaurant to restaurant, there's considerable variations in the long tail of brands nine through 150, she said. That's leading chains such as Firehouse Subs to create their own customized co-branded drinks, she said.
In a video interview above, Ms. Mann discussed some of the data insights Freestyle is generating.

Thursday, October 30, 2014

Keurig Green Mountain is best stock of 2014

via CNN

Keurig Green Mountain (GMCR) is the best-performing stock in the S&P 500 this year. Shares are up nearly 100% and are near their all-time high.
But can the stock keep climbing? Sure, the company's doing a solid job. It's created a product that consumers clearly want and it is continuing to expand its K-Cup offerings.
Keurig's most recent big win was a deal to start selling some of Kraft's (KRFT) coffee brands, such as Maxwell House and Gevalia, in K-Cups. The partnership also covers K-Cups for the McCafĂ© brand from McDonald's(MCD), which Kraft distributes to grocery stores.
Analysts expect sales and earnings to keep growing at a healthy clip.
Still, it seems that the main reason investors are so excited (and they just can't hide it) is because Coca-Cola (KO) is now the company's largest investor.
Coke purchased a 10% stake in February and raised it to 16% in May.
share a coke
Now there is speculation that Coke could buy the rest of the company. There were some vague rumors about a takeover circulating earlier this week.
Betting on a takeover is always a risky move for investors. It's an even bigger gamble when the stock has already run up as dramatically as Keurig has. Shares now trade for 36 times earnings estimates for fiscal 2015. That's a Jamaican Blue Mountain or Kona type valuation.
Coke is having a lousy year. Purchasing all of Keurig might be a way to reinvigorate the pride of Atlanta.
Merger good for all? Another benefit of blending coffee and cola would be bringing former Coke exec Brian Kelley back into the fold (he left to become CEO of Keurig Green Mountain in 2012).
With Coke's executive compensation plan being criticized by shareholders ranging from Oracle of Omaha Warren Buffett (Berkshire Hathaway (BRKB) is the largest Coke shareholder) to activist investor David Winters, Coke CEO Muhtar Kent is under a lot of pressure to get Coke back on track.
It doesn't help Kent that shares of Coke's top rival Pepsi (PEP) are up 14% this year and not far from an all-time high.
So Kelley could be an eventual successor to Kent that might satisfy shareholders. Kelley's not technically a Coke outsider, but he's been away from Coke for nearly two years.
Spokespeople for Coke and Keurig would not discuss the merger rumors. But both companies reiterated they are focused on developing products for the new Keurig Cold at-home beverage system.
That machine is expected to be released in Keurig's next fiscal year and should immediately challenge SodaStream (SODA), which has been struggling lately.
SodaStream is running a test in two Florida markets later this year to sell some Pepsi-branded products for its at-home beverage makers.
Investors are clearly betting that Keurig Cold will be a formidable foe. The only question is whether or not Keurig will be a fully-owned subsidiary of Coke by the time the machine hits stores. 

Tuesday, October 28, 2014

Sprite Hits a Sweet Spot With LeBron James' Surprise 'First Home Game'

via Creativity



Sprite today debuted this heartwarming 90-second spot featuring NBA star LeBron "King" James' return to his hometown of Akron, Ohio. The ad was shot on Sept. 25, a couple months after James announced he would be leaving the Miami Heat to rejoin the team he began his career with, the Cleveland Cavaliers.
We see James in a car being driven through the city he grew up in; the footage is intercut with clips of Akronites, young and old, speculating about how awesome his first home game will be. Indie rock band Imagine Dragons' uplifting song "I Bet My Life" backs the spot, hitting its crescendo just as James meets smiling local fans in the city's Patterson Park where Sprite has restored two outdoor basketball courts. Just before James joins a pick-up game in progress, we hear him in voice-over: "This is my first home game."
A 30-second version of the spot will air on TNT during the Cavaliers' first game of the season later this month. Sprite has also created commemorative 12-ounce cans featuring James' likeness that are available in Ohio stores.