Coca-Cola Enterprises launches new category vision for future of Soft Drinks

Tuesday, March 16, 2010

"Open More Business" report from CCE reveals opportunities to unlock £1.4 billion category growth.

16 March 2010: A report launched today by Coca-Cola Enterprises Ltd (CCE) shares new evidence based insights on how people shop the Soft Drinks category. The report, entitled "Open More Business", is the result of a £2 million research programme over the last three years to understand how consumers buy soft drinks and how to tap into these trends to unlock and accelerate growth across the £11.4 billion Soft Drinks category .

The report has identified an exciting future for the Soft Drinks category, including a £1.4 billion growth opportunity which CCE is looking to target over the next five years. In simple terms this equates to existing Soft Drinks shoppers buying one extra soft drink every fortnight. GB per capita soft drinks consumption is currently behind neighbouring countries such as Ireland, Belgium and Norway [2].CCE has identified this as a clear indicator of the growth potential in GB.

As a manufacturer and provider of a world-class portfolio of brands, CCE has launched the report as part of its ongoing programme to work with its retail and on-premise customers to grow soft drinks sales responsibly.

CCE has used detailed research to reach a new level of understanding of the Soft Drinks Category, and the integral elements required for continued growth. This research focused on four key areas of understanding:- consumer and shopper needs, shopper missions, the different environments in which Soft Drinks are bought, and what role Soft Drinks can play within those environments. Key findings include:

• The identification of 16 [3] different shopping environments which have been divided into three main groups, Future Consumption [4], On-the-Go [5] and On-Premise [6]
• Eleven strategic Soft Drinks category drivers e.g. Category Availability; On the Go; Revive Me; Better Quality on Tap; Drinking with Food [7]
• A new shopper driven segmentation grouped by consumer need to include Wellness; Sports; Hydration; Stills; Refreshment; Energy; Adult Socialising

In line with the results of the study, CCE's "Open More Business" category campaign will use its findings, including the opportunity drivers, new segmentation and real-life case studies to offer comprehensive practical, easy to implement advice to all CCE customers across trade press, in-store, in-depot and on-line.

Simon Baldry, Managing Director at CCE said: "This research will drive our leadership of the category, as we work with our customers to help them unlock the £1.4 billion growth opportunity we have identified. It's the same as Soft Drinks shoppers buying one extra soft drink every fortnight. In GB our per capita soft drinks consumption is currently behind countries like Ireland, Belgium and Norway, so we know there is strong potential for growth here."

Craig Smith, Vice President Marketing & Strategic Planning at CCE said: "Our category vision is live and happening now. We're transforming our research capabilities with our Collaboration Learning and Insights Centre (CLIC) virtual store technology and advancing customer partnerships to new levels. We want to make the soft drinks category more engaging for shoppers, and more successful for our customer partnerships. We have real momentum in our business to deliver strong plans in 2010 and realise this £1.4 billion category opportunity."

Notes to editors

For more information please contact:
Simone Harvey - simone@mercieca.co.uk / 020 7485 0100

Coca-Cola Enterprises Ltd (CCE) is a UK based subsidiary of Coca-Cola Enterprises Inc, the world's largest marketer, producer and distributor of The Coca-Cola Company's (TCCC) products.

CCE manufactures and distributes products for TCCC as well as products for other brand-owners, throughout England, Scotland and Wales, employing around 4,500 people in Great Britain across seven manufacturing sites and a number of regional offices and depots.

CCE is committed to minimising the environmental impact of its products and operations, with a particular focus on sustainable packaging, water stewardship, and energy and climate protection.

CCE manufactures and distributes the following TCCC brands: Coca-Cola, diet Coke, Coke Zero, Fanta, Dr Pepper, Sprite, Schweppes, Schweppes Abbeywell, glaceau, Relentless, Powerade, Oasis and 5 Alive. In addition, CCE also distributes Monster, Appletiser, Ocean Spray and Capri-Sun on behalf of other brand owners.

CCE has the largest share of soft drinks in the UK with on-going brand and product innovation continuing to reinforce this position of leadership within the category. Coca-Cola is the UK's number one selling soft drink [9] and remains one of the most innovative brands in the world today.

[1]Source: Based upon total 'Off Premise' Soft Drinks sales of £6.2billion (Nielsen Total Coverage, Latest 52 Weeks to w/e. 13/02/10), total On-Premise Soft Drinks sales of £3.9 billion (Nielsen, Total On-Premise, Latest 52 weeks to November 2009 and a CCE internal estimate of Cold Channel/'Other' channel sales of £1.3 billion
[2]INforM Global Industry estimates 2008 [3]The 16 environments include Superstore Food hall; Neighbourhood; Fuel; Bars, Pubs & Clubs; Canteen; Food-to- Go; Fast Food; Restaurants; Bulk Buying; Concessions; Café/Coffee Shop; General Store; Vending. Five of these key environments - Superstore Foodhall; Neighbourhood; Fuel; Bars, Pubs & Clubs and Canteen are estimated to deliver 69% of the £1.4 billion category opportunity
[4]Future Consumption i.e. 'buy now, drink later'
[5]On-the-Go - 'buy now drink now'
[6]On-Premise - 'buy now drink now' in a Pub & Club, Café/Coffee Shop or Canteen
[7]The 11 strategic drivers include- Category Availability; Soft Drinks for Social Occasions; On-the-Go Frequency; Wellness made Simple; Never Run Out at Home; Drinking with Food; Soft Drinks Kids Love and Mums Love to buy; Revive Me; Better Quality on Tap; Engaging with Teens
[8]AC Nielsen Total Coverage to 31.10.09
[9]AC Nielsen Total Coverage to 31.10.09