A worker drives a forklift at a Coca-Cola Canada Bottling Ltd. distribution center during an inauguration ceremony in Richmond, British Columbia, Canada, on Wednesday, Aug. 14, 2024. The new 230,000 sq ft. distribution center is an $18 million investment that is part of a broader $42 million commitment to the Lower Mainland, including a recent $24 million upgrade to the Richmond manufacturing facility. Photographer: Ethan Cairns/Bloomberg
Beijing: Coca-Cola Co is expanding its market presence in China by prioritising its carbonated drinks with strategic collaborations and new product package launches to get closer to younger consumers.
The beverage giant has partnered with Oreo, a popular snack brand, to launch a limited-edition drink called Coca-Cola Oreo Zero Sugar.
The collaboration, inspired by the theme of “besties”, aims to celebrate friendships “with a unique beverage offering and accompanying digital experiences”, said the company.
The new drink will be available in major stores and McDonald’s outlets across China next month. It features a design with Oreo cookie and Coca-Cola bottles, offering a taste of Coca-Cola infused with subtle Oreo flavours.
This collaboration underscores a growing trend in the food and beverage industry, where iconic brands join forces to reach new consumers and expand market presence.
In June, Coca-Cola further strengthened its market strategy by introducing pocket-size packaging for its flagship products – Coca-Cola, Sprite and Fanta.
These 248ml bottles are designed to cater to the growing “on-the-go” and “city walk” trends among younger consumers in China, offering convenience and portability.
Despite mixed performance in the Asia-Pacific region during the second quarter – with volumes up 3% but price and mix down 3% – James Quincey, Coca-Cola’s chairman, emphasised the company’s strategic focus in China.
He said that Coca-Cola is prioritising its investments in sparkling drinks, juices and teas, while scaling down emphasis on water products where profitability is lower.
The overall volumes were negative in China, but that is entirely driven by reduced emphasis on water products. In fact, sparkling beverages’ volumes were slightly positive in China in the fourth quarter, Quincey said in the earnings call.
According to Carbonated Beverage China 2023, a report from market research firm Mintel, total sales volume of carbonated beverages in China reached 20.6 billion litres in 2023, reflecting 6.7% growth compared to 2022.
Mintel forecast a compound annual growth rate of 4.2% for carbonated beverages from 2023 to 2028, with volumes expected to reach 25.3 billion litres by 2028.
Marta Zhang, senior analyst at Mintel, said that leading brands are focusing on health-oriented product innovation and launching limited edition products to maintain market momentum. — China Daily/ANN
