Coca-Cola marketing director for Great Britain Cathryn Sleight said: "As we get a stronger marketing plan and proposals behind the overall Schweppes portfolio, I think there will be opportunities for us to work on Malvern with Schweppes." No further details were revealed, but it was suggested by Sleight that Malvern still has "a lot more room for growth". Coke's last serious foray into the market was with Dasani in 2004. Source: Marketing Week

Greece's Coca-Cola Hellenic Bottling (CCHBC) expects to grow earnings per share by 12-15% this year as it launches low-calorie drink Coke Zero into more markets after soaring 2007 profit beat forecasts. CCHBC, the world's second-largest bottler of Coca-Cola drinks, said 2007 net profit rose 42% to €472.3 million ($687.9 million) from €334 million in 2006, boosted by strong growth in emerging and developing markets. Net profit had been forecast at an average of €463.3 million in a Reuters poll of 12 analysts. The bottler said it sees earnings per share of €1.46 to €1.49 this year, with volume growth growing by about 7%. CCHBC, present in 28 countries, has bought into 11 water and juice firms in Europe and Russia in the last six years to cash in on consumers' shift towards healthier drinks. "Growth was achieved across all reporting segments, with non-carbonated soft drinks (CSDs) now accounting for 37% of our total volume sold," Chief Executive Doros Constantinou said in a statement. Earnings before interest and tax (EBIT) for 2007 in established markets, including Greece, rose by an annual 25%, versus a 56% and 48% jump in developing and emerging markets respectively. "CCHBC managed to achieve both robust volume growth in full year 2007 and operating margin expansion despite higher raw material prices and continuous investment in sales capabilities," said brokerage HSBC Pantelakis in a note. Shares were up 3.5% at €29 in early trade on the Athens bourse. Product plans Sales volume rose 13% to 2.01 billion unit cases, in line with its 2007 guidance for annual growth of 13%. About two thirds of total sales volume comes from developing and emerging markets, including Russia and Nigeria. CCHBC, which launched Coke Zero in Ireland, Northern Ireland, Greece, Switzerland, Austria, Italy, Croatia and Romania last year, plans to introduce the product to more markets in 2008. "We plan to launch Coke Zero in another eight markets in central Europe primarily, developing and emerging markets sometime before May," Constantinou told Reuters. The successful launch of the Coke Zero product last year helped growth in total carbonated soft drinks reach an annual 7.0%. Fourth-quarter net earnings came to €37.6 million, compared with a loss in the previous year. The shares have lost about 6% since the start of the year, outperforming a 15% drop on the Athens benchmark general index due to the bottler's strong growth prospects. * (Editing by David Cowell and Shaun Weston)* Article from Reuters

The Coca-Cola Company has acquired a substantial stake in the fast-growing US producer of organic ready to drink teas, Honest Tea, confirming industry speculation reported in the last issue of beverage innovation. Coca-Cola has bought 40% of Honest Tea, with an option to buy the majority of the company in three years. Terms of the transaction were not revealed, but the normally accurate Wall Street Journal said Coke was paying about $43 million for the initial stake. The deal adds to Coca-Cola’s portfolio of healthy non-carbonated beverages, following last year’s acquisitions of FUZE for $200 million and Glacéau enhanced waters for $4.1 billion. Honest range Based in Bethesda, Maryland, Honest produces a line of lightly sweetened, all-organic RTD teas, as well as Honest Ade organic fruit drinks and Honest Kids pouch drinks. Honest is the bestselling tea brand in America’s natural foods channel, and has begun expanding into mainstream grocery and convenience stores. Coca-Cola has lagged in the booming RTD tea category, which grew a further 24% over the first nine months of 2007 while regular soft drinks declined 6%, according to the US industry newsletter Beverage Digest . Coke’s arch rival PepsiCo leads the category with Lipton Iced Tea and a share of almost 40% – followed by the independent AriZona Beverage Co and Cadbury Schweppes with Snapple. Although Coca-Cola distributes Nestlé’s Nestea, as well as its own Gold Peak brand, the company presently languishes in fourth place with a share of some 11%. * Details of the deal* The deal with Honest Tea was negotiated by Venturing and Emerging Brands (VEB), a special unit of Coca-Cola North America (CCNA) that was set up last year to invest in new beverages with high growth potential. “Honest Tea is the leader in the fast-growing organic tea space, an area where CCNA does not currently compete,” said Coke spokesman Scott Williamson. “We believe CCNA’s tea brands, as well as Honest Tea brands, can thrive in the current beverage landscape.” VEB’s investment will not have much initial impact on the results of CCNA. Although Honest Tea reportedly grew 70% last year, revenue was a modest $23 million from sales of 2.5 million cases (compared with Glacéau’s 100 million cases). However, the deal will have massive ramifications for Honest Tea. The company was set up ten years ago by business guru Dr Barry Nalebuff of Yale University – economist, analyst, Forbes columnist and expert on game theory – in partnership with former student Seth Goldman. Honest Tea prided itself from the beginning on its “green” credentials. It was the first to introduce a certified organic bottled tea, produced with leaf from sustainable plantations in India, and also first with a Fair Trade bottled tea. Honest staff rode to the office on bicycles provided by the company, and worked at desks from the second-hand store. Goldman, Chief Executive of Honest, refutes suggestions that he, Nalebuff and the company’s financial backers are now selling their principles as well as their stock by doing business with Coca-Cola. Goldman points out that he and Chairman Nalebuff will remain in control for at least the next three years, supported by long-time Board member and advisor Gary Hirshberg, whose full-time job is running yogurt maker Stonyfield Farm. Goldman prefers to focus on the possibility of spreading Honest’s message to many more consumers. Despite its success in health food stores, the company has found it hard to penetrate the wider market. But that could change swiftly when Honest is channelled through Coca-Cola’s unrivalled distribution system. Goldman speculates that the company’s 2007 requirement of 2.4 million pounds (1,000 tons) of organic tea leaves might easily be multiplied tenfold, giving a useful boost to sustainable agriculture in India. Equally, increased consumption of Honest’s natural, low-calorie beverages might help make Americans a fitter, leaner nation. “They are doing this because they recognise the value of what we’re doing,” said the CEO – or “TeaEO,” as he was archly referred to in the official release. “The goal is to build Honest Tea and let them tap into what we’re doing. This isn’t selling out – they’re buying in.”

Coca-Cola Enterprises (CCE), the world’s biggest Coke bottler, is cutting its carbon emissions and improving its fuel efficiency by buying 120 new trucks powered by an environmentally friendly diesel-electric system. Specially equipped by the Eaton Corp of Kalamazoo, Michegan, the trucks will join CCE’s distribution fleet in the US. CCE has already been operating 20 trucks powered by Eaton’s hybrid power system since last year. The bottler’s new order for Eaton-powered trucks is the biggest yet from a North American customer. Extensive testing and evaluation by CCE showed the Eaton hybrid power system reduced emissions roughly 32% and fuel consumption by up to 37%, compared with conventionally-powered trucks. “We've been working with Coca-Cola Enterprises since 2003 to assess our systems,” said Dimitri Kazarinoff, General Manager for Emerging Technologies at Eaton’s Truck Group. “Coca-Cola is demonstrating its commitment to reducing pollution and greenhouse gases, and Eaton is pleased to be a part of this effort. We're looking forward to working with them to deploy the systems into their transportation network.” Dave Leasure, Corporate Director of Fleet Procurement for CCE, noted: “In addition to the environmentally friendly advantages that hybrid vehicles deliver, we're also happy to report that driver acceptance has been highly favourable, especially in high start-and-stop applications. “The hybrid drive units have been performing very well in communicating with the electronic engines, always giving us the necessary torque and horsepower when it's needed.” The Eaton diesel-electric power system features an UltraShift automatic transmission, and recovers energy normally lost during braking, which is stored in batteries.

Coca-Cola North America is set to place calories-per-serving and servings-per-container information on the front of all packages for its US beverage portfolio, beginning next year. The move follows a 2003 Food and Drug Administration (FDA) Obesity Working Group (OWG) conclusion that calories should be given more prominence on food labels. “We view our label as a powerful tool for education, an opportunity to communicate with consumers every time they choose one of our products at the store or have a Coca-Cola beverage on their table,” said Celeste Bottorff, Vice President of ‘Living Well’ at Coca-Cola. “We listen to what consumers tell us they want, respond creatively and encourage everyone to make informed decisions about what they drink – choices that reflect a sense of balance and moderation. It’s part of our Live Positively philosophy.” *

To mark UK Recycle Week, four sculptures made from Coke cans were unveiled in four cities across the country. * To mark UK Recycle Week, four sculptures made from Coke cans were unveiled in four cities across the country. Iconic aluminium sculptures made from Coca-Cola, diet Coke and Coke Zero cans were unveiled in four cities across the country to mark the beginning of Recycle Week (2-8 June 2008). * The Angel of the North, Big Ben, Clifton Suspension Bridge and the Birmingham Bull have been re-created in spectacular form by artists commissioned by Coca-Cola in a bid to raise awareness of the importance and benefits of recycling and to encourage more consumers to recycle their drinks cans and bottles. While soft drinks packaging is one of the world’s most recycled materials, only 25% of plastic bottles and 48% of aluminium beverage cans are currently recycled in the UK. Liz Lowe, Citizenship Manager at Coca-Cola Great Britain said “We hope these dramatic Coke can sculptures will encourage people to think twice about where they throw their empty drinks containers – our packaging is not just waste, but a valuable resource which can be used again and again. Recycling saves energy and we can all do more. “As a company, we take our environmental responsibilities very seriously and we are working on a number of initiatives to minimise the environmental impact of our products and operations. For example, well over 90% of the waste produced at our manufacturing sites is now recycled, we’re gradually making all packaging smaller and lighter and our cans and glass bottles contain around 30-50% recycled material.” Recycling Zones On the eve of Recycle Week, Coca-Cola also announced plans in partnership with WRAP to create 80 “Recycling Zones” across the country over the next three years. Recycling bins will be located in high-traffic public places including theme parks, shopping centres, transport hubs and leisure facilities to allow consumers to recycle soft drinks packaging more easily when they’re out and about. The Mayor of London is a supporter of Recycle Week. Boris Johnson,said: “Recycle Week is a fantastic initiative and does a huge amount toencourage us all to recycle more. I hope the sight of one of London'smost famous landmarks made from recycled drink cans, will inspireLondoners to make an extra effort to recycle their rubbish, rather thanchuck it in the bin and condemn it to a landfill site.”

Coca-Cola has hired branding agency ATTIK to handle brand identity for its sponsorship of the 2010 FIFA World Cup in South Africa. Coke is also the UEFA European Championship football sponsors, title sponsor of the Coca-Cola League, and uses Manchester United's Wayne Rooney as a brand ambassador. Coca-Cola has also hired the agency to handle its Christmas 2008 below-the-line marketing activity, including packaging, point-of-sale and identity. According to the agency, the new Christmas design will span the entire Coke range, including Coke Red, Diet Coke and Coke Zero. The new look will be used across all European markets. * *

US-based Cabot Creamery Cooperative has launched Cabot Greek Style Yogurt. “Our new line of Greek Style Yogurt melts in your mouth – better than ice cream if you want rich, luscious taste,” said Cabot Creamery Cooperative CEO, Richard Stammer. “The family farmer owners of Cabot Creamery Cooperative have produced another world-class product. And, like our award-winning cheeses, our Greek Style Yogurt is in a class all by itself. We’re proud of that and we think our customers will agree.” The new yogurt is packed in 6oz cups and is available in a range of flavours: peach, strawberry, chocolate, vanilla and tropical fruit. There's also a Cabot plain flavour variant in a 32oz size. The new Greek Style Yogurt was launched in Publix supermarkets throughout the south-eastern part of the US and will eventually be rolled out across the country.

The UK's Office of Fair Trading has ruled that the Co-operative Group must dispose of 126 local stores in order to complete its purchase of the Somerfield supermarket chain. According to the OFT, the £1.57bn deal wouldn't damage competition nationally, but could have a negative effect at local level. The OFT said it is considering an offer from the Co-op to divest stores in the identified markets of concern. OFT Chief Executive John Fingleton said: "Once finalised, the divestment package will directly safeguard the welfare of many thousands, if not millions, of UK consumers by restoring grocery competition in the 126 local areas affected, while allowing an otherwise likely pro-competitive merger to go ahead." * *

**In its search for a solution to the financial challenges ahead, Danish-based Hirtshals Co-operative Dairy has approached Arla Foods with a view to merging the two companies. **This means Hirtshals’ co-operative members will be offered membership of Arla Foods following a takeover by Arla Foods. Hirtshals Co-operative Dairy’s Board of Directors will present their decision to the dairy’s co-operative members at an extraordinary meeting on 18 December. Hirtshals Co-operative Dairy has also decided to close down production at Ingstrup Dairy and to suspend operations. The Chairman of Hirtshals Co-operative Dairy, Cyril V Post, welcomes the fact that the dairy’s future has been settled, and accepts that it would have been hard to raise the finance to solve the problems in the current economic crisis. “We stand to lose 30-40% of our milk from the end of 2008 because several co-operative members have given notice of their intention to resign,” said Post. “The financial crisis is also causing many consumers to opt for cheaper products. As this is an area we don’t cover, our financial situation has been extremely difficult. In this situation, we're pleased that our approach to Arla Foods has been successful and that the dairy will now continue.” Arla Foods intends to maintain Hirtshals Co-operative Dairy and will, together with the dairy, evaluate its production and dairy products. “Hirtshals Co-operative Dairy has some interesting products,” says Arla Director of Danish Business Lars Aagaard. “We will now look into the opportunities for regional milk from North Jutlandian farmers. We will also ensure that it is still possible to buy milk from Hirtshals with the lighthouse on the carton.”

The Co-operative Group has become the first UK retailer to roll out 100% recycled PET (rPET) plastic bottles across its entire range of own-brand carbonated soft drinks and mixers, thanks to the Silver Spring Mineral Water Co of Kent, the county’s oldest drinks manufacturer, which produces the Co-op drinks. The move to 100% rPET plastic bottles for these drinks, as well as the retailer’s own-brand 330ml sportscap juice drinks, will reduce CO2 emissions by 1,212 tons and save 808 tons of new plastic per year – equivalent to the weight of 180 African elephants. rPET bottles are made from PET (polyethylene terephthalate) plastic bottles saved by consumers for recycling. The bottles are cut into small pieces at recycling centres, washed and then melted into plastic granules ready to be made back into plastic bottles. As well as being made from recycled plastic, the bottles are fully recyclable and can be collected and recycled alongside regular PET bottles. David Hanlon, Operations Director at Silver Spring, said: “We are absolutely thrilled to be working in partnership with the Co-operative Group to bring rPET bottles to market before its competitors. “There is a great deal of enthusiasm from consumers and retailers for a greener product, and Silver Spring with its state-of-the-art manufacturing and bottling plant is well placed to deliver this. “Silver Spring has strong relationships with suppliers of rPET, and is easily able to meet the high demand for it from its customers.” Customer support Iain Ferguson, Commercial Packaging Manager for the Co-operative Group, said: “Our members and customers have told us they want to see action on packaging, so we are delighted to be the first major retailer to roll out 100% rPET bottles across our carbonated drinks and mixers range. “This follows similar initiatives by the Co-operative, such as the launch of the world’s lightest whisky bottle and the introduction of ‘naked’ cucumbers last year, when our whole cucumbers were stripped of their plastic wrapping.” Silver Spring, which has been in business since 1870, has produced drinks for the Co-op for the past six years, and has helped the retailer develop new products and flavours. The switch to rPET follows the launch of the Co-operative’s Food Ethical Policy earlier this year, based on a massive consumer poll. More than 100,000 Co-op members and customers said that action to safeguard the environment was one of their top priorities, and 97% supported the group’s aim of reducing waste and increasing recycling. The Co-operative was voted the UK’s most ethical brand in a GfK NOP poll conducted for the Financial Times earlier this year. The group was also voted “greenest grocer” in an opinion poll commissioned by the Times. Last week (16 July) it was announced that the Co-operative Group had agreed to acquire the Somerfield store chain for £1.56billion (€1.97billion). Somerfield operates about 880 outlets across the UK. After the acquisition, the Co-operative will operate more than 3,000 stores in total, with annual sales of about £8billion (€10billion).