Coke Winning In A Recession

Monday, March 29, 2010

Coca-Cola smashes £1 billion retail sales barrier for first time
Coca-Cola's strong performance in the recession was demonstrated today with figures showing £1 billion in retail sales for 'Coca-Cola', 'diet Coke and 'Coke Zero' over the last year in Great Britain.

It is the first ever time that the combined sales of the three Coke brands have broken through the £1 billion barrier.

The record-breaking performance comes despite the tough economic climate and fall in consumer confidence over the last year. And confirms that cash-strapped consumers are still choosing trusted and quality premium brands.

Coca-Cola, with a long heritage and strong emphasis on quality and promoting optimism and happiness, has benefited strongly from this trend.

A year on year increase in sales of 4.7% was recorded across the three brands in the 'MyCoke' (Coca-Cola, Diet Coke, Coca-Cola Zero) portfolio with retail sales rising to £1.01 billion.

Simon Baldry, Managing Director, Coca-Cola Enterprises Ltd said:

"We're delighted MyCoke has reached £1bn in retail sales value playing a key role in driving significant category profitability for our customers.

"Our research has identified further opportunities to grow the category and we're working with our customers on plans to unlock this growth. MyCoke will play a key role in achieving this as we activate our sponsorship of the FIFA World Cup this year and then the London 2012 Olympics.

"Continuing our success depends on further developing shopper experiences in store and working with our trade partners to continue to unlock profitable growth in soft drinks."

Sanjay Guha, President of Coca-Cola Great Britain and Ireland, said:

"We are delighted to have passed this milestone with an exceptional performance in very difficult trading conditions.

These figures show that when times are tough, quality and trust matter even more to consumers - and how our optimistic Open Happiness campaign has struck a chord in tough times.

"We will continue to offer increased choice for consumers and through innovative marketing including our sponsorship of the World Cup this summer and the 2012 Olympics to build excitement.

"It is why we are confident that we will continue to be well placed when the recovery comes"..

He added: "The economy is not out of the woods yet. Consumer confidence may remain fragile for some time.

But Coca-Cola has a long history. It has taught us that recessions, no matter how deep, do pass and it is crucial to keep investing both in marketing and to prepare for the recovery.

"These excellent results show that we are reaping the benefits of this investment." Coca-Cola's strong performance has been built on increased choice - in both drinks and pack sizes - along with continued investment in innovative marketing.

The Open Happiness campaign, launched last year, has been developed around the key values of optimism, enjoyment, heritage and authenticity.

Street Striker, presented by Wayne Rooney, has helped raise the profile of Coke Zero.

Coke Zone, which reached over 1.5 million members this week, has combined on-pack offers with an on-line platform which builds loyalty and excitement and can forge a strong relationship with consumers.

An increased focus on meeting consumer needs through new and mixed pack sizes has also helped drive growth across the 'MyCoke' portfolio. A new range of multi-pack cans has proved particularly popular with families.

The continued investment and innovation and strong performance means that Coca-Cola has again topped The Grocer's Top 100 brands survey.

The GB figures come alongside continuing success for Coca-Cola globally and remarkable growth in major emerging markets.

Global figures show that sales rose in the last quarter by 8% in Brazil, 20% in India and 29% in China.

Ends

For further information please contact Frankie or Carly at Mercieca PR on 020 7485 0100 or email Frankie@mercieca.co.uk/Carly@mercieca.co.uk

Notes to editors

AC Nielsen 52 w/e 26th December 2009:

• In Volume terms MyCoke is over 1bn litres and growing at 4.4%
• In Value terms MyCoke is over £1bn and growing at 4.7% YoY
• Coca-Cola grew in volume by 5.3% (565m litres) and 5.2% in value
• Diet Coke grew in volume by 3.7% (448m litres) and 5.3% in value
• Coke Zero grew in volume by 2.7% (60m litres) and 0.3% in value
• My Coke is gaining volume share of colas +1% point YoY

About Coca-Cola in Great Britain:

Our business in Great Britain is made up of two separate companies that manufacture, distribute and market our range of drinks:

Coca-Cola Great Britain is responsible for marketing and developing new and existing brands. Based in West London and employing 120 people, it manages over 17 brands (around 100 products) in Great Britain.

Coca-Cola Enterprises manufactures and distributes soft drinks for both The Coca-Cola Company and other brand owners. It employs around 4,500 people in Great Britain and has seven manufacturing sites and numerous regional offices and operations depots across the country.

AC Nielsen quote:

"The Nielsen/Grocer Biggest Brands report sees some really exceptional performances from brands in what has been a tough year for the consumer. Value for money is more important than ever before and shoppers will continue to buy trusted brands if they offer good value. We have seen consumers be much more cautious and many have undertaken strategies to save money on the weekly shop but the report highlights that quality, trusted brands can survive and indeed flourish in tough times."