Food Business News - October 7, 2014 - (Page 24)

Coke sees $300 billion international opportunity ingredients custom blends innovation national distribution B.C. Williams Bakery Service BCW Food Products bcwilliams.com 1-800-527-4104 24 FOODBUSINESS NEWS ® BOSTON - Excluding North America, E l di N th A i a $300 billion growth opportunity exists in other parts of the world from 2014-20 for non-alcoholic, ready-to-drink beverages, according to the Coca-Cola Co. For example, half the world's population has not had a Coke in the last 30 days, said Ahmet Bozer, executive vice-president of the Coca-Cola Co. and president of CocaCola International, during a Sept. 4 presentation at the Barclays Back-to-School Consumer Conference in Boston. "(There are) 600 million teenagers who have not had a Coke in the last week," he said. The company will use different approaches in different markets to drive beverage growth, said Kathy Waller, executive vice-president and chief financial officer for Atlanta-based Coca-Cola. "In emerging markets with lower per capita consumption of packaged beverages, it's important that we work with our bottling partners to focus on volume and share gains as we invest in our infrastructure and build our business," Ms. Waller said. "Once a market enters the developing stage, pricing and mix become more important, given both the rising disposable income that our consumers are enjoying and the scale of our system, and we expand our price/pack architecture so that we can pull levers other than rate increases to drive revenue growth. rk "In developed markets, we work n together as a system to focus on r price realization as we leverage our scale position, innovation opportunities, and in the premium position of our brand." Mr. Bozer said Coca-Cola uses price/pack architecture, marketplace execution and marketing to drive growth. Pi / k hit t l Price/pack architecture may i involve immediate-consumption packs with different price points. For example, a 300ml product in the Philippines sells for 10 Filipino pesos (23c). "This package has been growing very healthily, pushing forward our immediate-consumption growth, gaining share with teens, and getting a lot of consumption with the teens," Mr. Bozer said. Marketplace execution involves an R.E.D. (right execution daily) score, which measures how well Coca-Cola performs within a store. "Today, around the world, we have (the) majority of our bottlers implementing that system, and we cover 44% of our global volume through the R.E.D. score," Mr. Bozer said. He gave the example of a "splash bar" in India where product sells for 5 rupees (8c). "This is actually a product from the cooled PET bottle being served in cups, which is really doing very well where we do this, which allows us to get to the parts of the country which is hard to get, which then has applicability in other parts of the emerging world," Mr. Bozer said. For marketing, 80 markets have adopted the Share a Coke campaign, which replaces the logo on the Coca-Cola bottle with a first name, he said. Mr. Bozer gave two more examples of Coca-Cola's international growth in b beverages. For one in China, Schw Schweppes +C has vitamin C and sell at a higher price point than sells no normal sparkling beverages. "That's giving us great margins a giving us the opportunity to and g grow," he said. For an example in Japan, A Aquarius Zero targets the older a adult consumer. FBN October 7, 2014 http://www.bcwilliams.com

Table of Contents for the Digital Edition of Food Business News - October 7, 2014

Food Business News - October 7, 2014
General Mills to eliminate more jobs
Sugar prices remain high amid Mexican trade dispute
Dairy Business News - Increasing ice cream sales
Table of Contents
Web Contents
Editorial - Putting millennials in perspective
Mondelez to build biscuit plant in Bahrain
ADM forming new ingredients unit after Wild acquisition
Hershey acquires Chinese confectionery company
Sabra Dipping Co. names new c.e.o.
Restaurant index rises for first time in three months
Snack preferences differ between millennials and boomers
F.D.A. issues ‘food safety challenge’
Kontos Foods expands to Caribbean
Snatching share in the snack market
Starbucks acquiring full control of Japan business
JAB Holding to acquire Einstein Noah Restaurant
Seaboard sells stake in Daily’s Premium Meats
Diamond still in the rough
Chiquita to get larger share of company in revised Fyffes deal
Coke sees $300 billion international opportunity
Small victories add up for ConAgra Foods
Carbonated waters: Tiny bubbles, big splash
Guilty verdicts in Peanut Corporation of America trial
Washington - F.D.A. revises four proposed food safety rules
Flavor Trends - Sophisticated heat
Ingredient Innovations - Spreading and staying stable
Buzz around sustainable palm oil grows louder
The scoop on Baskin-Robbins’ return to growth
New Food Products
Ingredient Market Trends - U.S.D.A. estimates U.S. wheat crop at 2,035 million bus
Ingredient Markets
Supplier Innovations and News
Classifieds
Marketplace
Ad Index
Food Business in the News

Food Business News - October 7, 2014

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