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- Coke bottler backs down in ‘unholy’ vending row
Coca-Cola’s major pan-European distributor, the Athens-based Coca-Cola Hellenic Bottling Co, has begun removing religious images from hundreds of chilled vending units in Russia, after protests from a group of Russian Orthodox believers in the city of Nizhny Novgorod, 400km from Moscow. The complaints centred on pictures of an Orthodox cross and onion-shaped church domes on the vending machines. Initially, Coca-Cola Hellenic said it had no plans to drop the images, noting that there had been no complaints in other Russian cities. Now, however, the company has retreated. “I would assure people that we used these images to promote Russian culture and not to offend anybody’s feelings,” said a spokeswoman for Coca-Cola Hellenic. “This incident in Nizhny Novgorod is regrettable. “We are strictly adhering to our principles of ethical marketing, which means we are taking into consideration local community demands. We took the decision to remove the image of the church.”
- Coke shows new Super Bowl ads
Nearly 100 million viewers watched moments from ‘The Coke Side of Life’ when two new 60-second Coca-Cola ads debut on television’s biggest stage during the broadcast of Super Bowl XLII on FOX. "It's Mine" is a combination live-action and computer generated spot that's set during the famous Macy’s Thanksgiving Day Parade. When a giant Coca-Cola contour bottle balloon joins the parade, a good-natured tussle ensues among the skyscrapers of New York as several well-known character balloons vie for the floating Coke. In the end, the surprise victor shows that even a perennial underdog can triumph on 'The Coke Side of Life.' Using Washington, D.C. landmarks as a backdrop, "Jinx" features Democratic strategist and commentator James Carville and former Senate Majority Leader Bill Frist. When the two utter the same word simultaneously during a television showdown, Frist invokes the "jinx" game, compelling Carville to buy him a Coke. With icy bottles of Coca-Cola in hand, the two spend the rest of the day enjoying ‘The Coke Side of Life’ throughout the Capital as political disagreements are temporarily forgotten. "Coca-Cola is part of the celebrations that friends and families enjoy when they gather to watch the biggest game in sports," said Katie Bayne, chief marketing officer, Coca-Cola North America. "Choosing Coca-Cola and choosing to live on ‘The Coke Side of Life’ is about deciding to go for the positive. It's forgetting what makes us different and remembering what brings us together -- watching the Super Bowl broadcast, the good guy winning or just sharing a Coke." Beginning at noon on Saturday, February 2, the two new Coca-Cola ads will be available for advance viewing on mycokerewards.com. A special red football helmet icon on the site’s homepage will act as a link to view the commercials. These new spots are the latest additions to 'The Coke Side of Life' campaign. Entering its third year, this critically acclaimed global campaign highlights how Coca-Cola and living on ‘The Coke Side of Life’ bring people together in positive ways. For the second year in a row ads from 'The Coke Side of Life' will be featured during the Super Bowl telecast. In addition to the Coca-Cola ads, a new 60-second commercial for vitaminwater will be unveiled. Featuring NBA superstar Shaquille O'Neal as a jockey, this spot marks the first time the brand will advertise during the Super Bowl broadcast. Company profile The Coca-Cola Company is the world's largest beverage company. Along with Coca-Cola®, recognized as the world's most valuable brand, the Company markets four of the world's top five nonalcoholic sparkling brands, including Diet Coke®, Fanta® and Sprite®, and a wide range of other beverages, including diet and light beverages, waters, juices and juice drinks, teas, coffees, energy and sports drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries enjoy the Company's beverages at a rate exceeding 1.4 billion servings each day. For more information about The Coca-Cola Company, please visit our website at www.thecoca-colacompany.com
- Superspy James Bond turns to Coke Zero
It seems that James Bond may be switching from his favourite vodka martini (shaken, not stirred) to a new non-alcoholic beverage: Coca-Cola Zero. Coca-Cola Great Britain has clinched a marketing deal with Sony Entertainment to link Coca-Cola Zero with the suave superspy’s latest cinematic adventure, 'Quantum of Solace', due to be released in the UK on 31 October. The company is producing a special limited edition package of the drink, rechristened 'Coca-Cola Zero Zero 7' in reference to Bond’s famous 007 codename. The British deal is part of a broader global partnership with Sony, and is Coca-Cola Zero’s first major international marketing collaboration since the brand was launched in 2006. 'Quantum of Solace', the 22nd Bond film, stars Daniel Craig in his second outing as 007. The film has been produced by Michael G. Wilson and Barbara Broccoli, and directed by Marc Forster. Edgier persona Bobby Brittain, Brand Director of Coca-Cola Great Britain, said: "We are delighted to be involved in this exciting project. “The new, edgier Bond persona is the ultimate embodiment of the Coke Zero brand personality, and is expected to deepen the brand's engagement with its core target audience of 20-something men." The launch of Coca-Cola Zero – unofficially dubbed 'Bloke Coke' – was the company's biggest brand launch since the arrival of Diet Coke almost 25 years ago. Coca-Cola Zero will be supporting the release of 'Quantum of Solace' with a through-the-line advertising campaign alongside promotional and on-pack marketing initiatives across a number of global markets.
- Coke reveals price of German merger
The Coca-Cola Company has revealed in a regulatory filing that it agreed to pay $626 million plus the assumption of debt to take full control of its German bottling operations last year, buying out almost 20 small regional bottlers and merging them into major bottler Coca-Cola Erfrischungsgetränke AG (CCEAG), already a Coca-Cola subsidiary. Coke negotiated for months to clinch the deal, which finally closed in September. The company said one unified bottling operation would be more efficient and responsive to market demands. Financial details of the transaction were not disclosed. The company’s filing with the Securities and Exchange Commission (SEC) shows Coke paid $385 million for the 17% of CCEAG shares it did not already own: $156 million in cash upfront, and $85 million in “guaranteed future payments". Coke also took over $34 million in debt. The former independent bottlers have shares in CCEAG, which they may sell back to Coca-Cola at a future date. Germany is Coke’s biggest European market, but slumped in the wake of a 1999 contamination scare in Belgium and northern France. In its results for 2007, the company reported that its German case volume edged up 1% over the year, with 2% growth in the last quarter, following 7% growth in Q4 the previous year.
- Klum and Coke see red over women’s health
Supermodel Heidi Klum has teamed up with Diet Coke to play a glamorous and meaningful role at the Oscars on 24 February. Klum will wear a dramatic red dress by John Galliano to the Academy Award presentations, as part of Diet Coke’s new partnership with The Heart Truth – a national awareness campaign about women and heart disease. A red dress has been adopted as the eyecatching symbol of this US campaign. Since mid January, American consumers have had the chance to win Klum’s dress through a Diet Coke sweepstake on mycokerewards.com, while helping women at the same time. For each sweepstake entry, Diet Coke is giving $1 (to a total of $250,000) to the Foundation for the National Institutes of Health, in support of awareness and research into women’s heart health. “Heidi Klum’s participation helps make this programme even bigger, and gives consumers a great way to become involved and learn more about a crucial women’s health issue,” said Caren Pasquale Seckler, Group Director of Low Calorie Colas for Coca-Cola North America. The Diet Coke Red Dress Programme include national and local retail promotions that aim to generate more funds for the campaign. Diet Coke is also sponsoring The Heart Truth’s “Red Dress Collection Fashion Show,” as well as a Heart Truth roadshow. The campaign is reinforced by ads and special Diet Coke packaging. Klum will be modelling her Galliano number for the first time in a Heart Truth fashion show on National Wear Red Day, 1 February.
- Coke believes Malvern has room to grow
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
- Greek Coke bottler sees 08 EPS growth of 12-15%
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
- Coke buys 40% stake in Honest Tea eco-brand
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.”
- Coke goes green with diesel-electric trucks
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.
- Coke to relocate nutrition label on US stock
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.” *
- Coke can sculptures mark UK Recycle Week
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.”
- Coke hires ATTIK for World Cup marketing
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. * *
