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Posted by Dale Buss on August 8, 2014 06:22 PM
The moment of truth for beverage retailers has gotten more interesting in the UK as Coca-Cola Enterprises has rolled out a "virtual assistant" to provide a last attempt at persuasion.
Projected onto a life-size, thin screen by Tensator, Coke's virtual assistant "Isabelle" tells retailers about the success of the brand's can-personalization marketing campaign, Share A Coke, suggests how retailers can maximize shopper interest in their stores and plays a new Share a Coke TV advertisement.
The digital signage, which uses innovative HD projection and audio-visual technology, is being used at Dhamecha cash-and-carry depots in London.
Isabelle "is a creative and fun way to reach our customers with the campaign and is a piece of genuine digital innovation that we're excited to bring to the market," Simon Miles, digital director at Coca-Cola Enterprises, said in a statement.Continue reading...
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Posted by Dale Buss on July 31, 2014 04:04 PM
Things aren't going well for Coca-Cola these days. While the company still returned $47 billion in profits last year, that amount was down by more than $1 billion from 2012.
That may not seem like much of a problem, but as newly chronicled in places ranging from the cover of the new issue of Bloomberg Businessweek to a prominent story in this morning’s Wall Street Journal, minting profits—and sales—for Coca-Cola no longer is as simple as filling another bottle or can. The company and, especially, the brand are being hit with unprecedented resistance these days that is so stiff, some worry it ultimately could be existential for Coca-Cola.
Consumption of soda globally fell in the first quarter for the first time since 1999, though they rebounded in the second quarter; and the consumption slide continues in the US as the brand remains under assault from anti-obesity activists and politicians for its sugar and calorie content, while Diet Coke increasingly is suffering attrition as well because of concerns about aspartame. Meanwhile, new beverage startups in the flavored water and tea categories in which Coke has invested aren’t growing quickly enough to offset the continued losses in soda consumption.Continue reading...
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Posted by Mark J. Miller on July 25, 2014 02:01 PM
While QSR brands across the board are wallowing in slow sales, Starbucks' third-quarter earnings tell a different story: the cafe reported $4.15 billion in revenue—an 11 percent increase from the same period last year.
Crushing impending competition from Dunkin' Donuts and McDonald's, Starbucks only foresees further sales growth as it plans to raise prices on some of its drinks and packaged coffee in the US, CNBC notes. According to Time, “over the past five years, Starbucks’ same-store sales … accelerated and far outpaced those of Dunkin’ Brands, parent company of Dunkin’ Donuts.” In fact, Dunkin' and McDonald's may be doing more damage to each other than Starbucks.
But don't think that Starbucks has been taking the offensive lying down. The brand has been bolstering its food offerings thanks to its purchase of La Boulange bakery in 2012. That bakery’s products are currently in more than 1,000 Starbucks but are planned to be in 2,500 by summer’s end.Continue reading...
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Posted by Alicia Ciccone on July 10, 2014 11:07 AM
Ready, set, SLURP!
7-Eleven's Free Slurpee Day kicks off Friday, July 11 at participating locations where fans of the frozen, carbonated beverage will no doubt line sidewalks in hopes of snagging a free small Slurpee before supplies run out. But this year, as the convenience chain celebrates its 87th birthday, 7-Eleven is extending the festivities for an entire week (actually eight days).
Consumers that download and register with 7-Eleven's app will get access to special daily coupons from July 12 through July 19 for free snacks like M&M's birthday cake candies, free Hostess Twinkies, a Snickers or Twix-brand ice cream bar or a free Big Gulp soft drink.
The celebration marks the 12th year that the brand has given away the free drinks, which are celebrating 49 years of frozen goodness.Continue reading...
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Posted by Dale Buss on June 23, 2014 01:13 PM
Starbucks continues to pursue share-of-gullet with news that it is expanding its test of made-to-order Fizzio sodas to the southern half of the US and Hawaii. Previously the “hand-crafted” sodas were tested in Atlanta, Austin and Japan. A national rollout is eyed soon, and more of Asia will be covered.
While the drinks are expected to drive only modest sales growth in an era when conventional soft drinks are under duress as never before, Fizzio is expected to help Starbucks’ broader goals for brand expansion, including not only a greater array of beverages but also as an entrée into other day parts such as lunch, Bloomberg Businessweek noted, and perhaps even home beverage-making systems. This summer it’s introducing new Teavana iced teas and two sandwiches, as well.
But there are hiccups for Starbucks to be had, for sure. It now must raise prices in US cafes and stores after drought in Brazil pushed up the price of Arabica coffee. Prices will rise less than 1 percent in Starbucks outlets but by about eight percent at retailers where Starbucks ground coffee is sold on a CPG basis.Continue reading...
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Posted by Dale Buss on June 20, 2014 11:49 AM
With a remark by an executive at a contest for UK entrepreneurs last week, Tesco has indicated interest in entering the growing “beauty beverage" market in Europe.
But as a segment that long has seemed heavy on promise but sometimes disappointing in actual sales (and results), beauty drinks have ensnared other major brands including Nestle, Coca-Cola and Sanofi over the last several years—with evidently less-than-spectacular results.
The idea of this genre is to create formulas that actually improve skin, hair and other aspects of appearance in specific ways that go beyond the general health-inducing properties of the thousands of “functional” drinks that are on the market globally.Continue reading...
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Posted by Dale Buss on June 16, 2014 05:23 PM
Keurig is aiming to compound its competitive edge in the single-cup home brewing market even as competitors such as Nespresso and generic imitators such as TreeHouse attempt to hold it back.
Meanwhile, Nestle is facing greater challenges in advancing its Nespresso single-cup brand while at the same time trying to revive the iconic Nescafe franchise that has flagged lately because single-serve home machines, and the likes of Starbucks cafes, have made instant coffees such as Nescafe outdated.
Maker of the market-creating K-Cup, Keurig Green Mountain will press its competitive edge in the years ahead using at least five distinctive advantages, CEO Brian Kelley told an industry conference last week, according to Food Business News.
They include Keurig’s business model, incorporating the expertise of a retail-beverage company with that of a high-tech appliance company, and its advantages in innovating the machines and the pods. The “smart” design of its machines is another, Kelley said. The fifth advantage is Keurig’s strong strategic partnerships, including with Coca-Cola, which recently took a minority stake in Keurig Green Mountain as the two companies perfect a cold beverage delivery system for the home.Continue reading...
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Posted by Dale Buss on June 11, 2014 03:43 PM
Coca-Cola’s global efforts to preserve its sales—and the essential nature of its brand and products—is beginning a crucial new test in the UK as the company launches both its new reduced-sugar Coca-Cola Life beverage and introduces a new anti-obesity campaign there simultaneously.
With 36 percent fewer calories and 37 percent less sugar than real cola, Coca-Cola Life will hit UK shelves in September, having passed its marketing launch in Argentina and Chile in 2013. Its upcoming launch in the UK will mark Life’s arrival in Europe (and the first new Coke product there since the launch of Coke Zero in 2006); no plans have been announced to roll it out in the US yet.
One reason Coke presumably started with Life in South America is that the drink is sweetened partially with stevia, a natural plant-derived substance that is native to the continent. PepsiCo has pooh-poohed the possibilities that global consumers will embrace stevia in colas because of aftertaste concerns, while still experimenting with the sweetener.Continue reading...