That’s the question Coca-cola, one of the world’s largest beverage manufacturers, is asking as it away from its traditional fizzy soft drinks into other niches. After beating expectations of 46 cents per share with 48 cents, KO stock jumped 3%, finally shattering a flat line for the entire year. A lot of that has to do with Coke’s embrace of alternative beverages, including water, sports drinks, and yes, coffee .
- Coca-cola coffee??? As odd as it may seem, Coke is going full-in on the coffee biz, buying up coffee chain Costa Coffee , a common staple in European cities. Costa competes with Starbucks , beating out Starbucks in its home market of the UK by 39% to 25% market share.
- James Quincy is taking a big risk... The KO CEO is open about his plan to transition the iconic Coke brand from just soda to other beverages, a move he calls ‘total beverage.’ But while consumers love their coke, evidenced by a 1% rise in sales of the traditional fizzy drink, it remains to be seen whether they’d be on board for a coffee or energy drink version as well.
- Do You Want a Coke With That? Testing Coke Coffee has already launched in 25 overseas markets, including a Coke ‘Plus Cafe Espresso’ and Coke Energy, but none in the US. They’ve also shied away from rebranding Costa as Coke so far, while developing a new line of chilled coffee products under the Costa brand.
Wut We Think: Soda isn’t going anywhere soon, and rising sales volumes means that Coca-cola isn’t going anywhere either. However, this into coffee , and other beverages may prove crucial to Coke’s future success. Keeping an eye on the Southeast Asia market, where ‘Coke Coffee’ was first launched, is a good idea (and if you’re in the area, pick up a Coke Coffee yourself for a test!). If it’s well received and introduced to Western markets, expect a new beverage craze to strike in the near future.
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