Food Business News - April 24, 2012 - 42

Beverage Business News

Volume growth boosts Coca-Cola income in quarter
Powerade, Dasani and vitaminwater spark gains in North America
Continued from Page 41 during the ﬁrst quarter, with solid growth in key developed markets such as North America (2%), Japan (3%) and Germany (3%), and strong growth in key emerging markets such as India (20%), China (9%) and Brazil (4%). Coca-Cola said global volume in its sparkling beverages increased 4% in the quarter, while worldwide still beverage volume rose 9%, with gains across most beverage categories, including packaged water, readyto-drink tea and coffee, energy drinks and sports drinks. “Packaged water volume grew 15% in the quarter, with strong growth across all geographic operating groups as we continue to focus on innovative and sustainable packaging and immediate consumption occasions,” the company said. “Ready-todrink tea volume grew 10%, with continued strong performance of key brands such as Gold Peak and Honest Tea in North America, Ayataka green tea in Japan and Nestea in Europe. Energy drinks volume grew 25% in the quarter driven by growth across our global portfolio of energy brands.” Operating income within the company’s North America group fell 3% during the ﬁrst quarter to $451 million, while operating revenues rose 5% to $4,921 million. Sparkling beverage and still beverage volume increased 1% and 6%, respectively, in the quarter. The company said still beverage volume was “led by continued strong Powerade growth of 13% with the new ‘Power Through’ campaign and NCAA March Madness activation. Still beverage volume in the quarter also beneﬁted from double-digit growth in Dasani water in PlantBottle packaging, Gold Peak tea, vitaminwater zero and smartwater. “During the quarter, we gained volume and value share in still beverages, with volume and share gains across multiple still beverage categories, including juices and juice drinks, sports drinks, energy drinks and ready-to-drink tea.” BBN

Coca-Cola’s view of the world
ATLANTA — The Coca-Cola Co.’s global business platform gives its executives a closeup view of economic development throughout the world. In a conference call with ﬁnancial analysts on April 17, Muhtar Kent, chairman and chief executive ofﬁcer of the company, shared his views on the economies of Europe, North America, China and Brazil. “With respect to Europe, we are observing ongoing macroeconomic uncertainty as 2012 unfolds,” Mr. Kent said. “Austerity measures implemented across the region are weighing on consumer conﬁdence, which recently reached its lowest level since the ﬁrst quarter of 2009. Despite the challenges in Europe, we are executing on all fronts to drive performance and share gains. So, while we expect the macroeconomic conditions will remain difﬁcult in Europe throughout 2012, we remain cautiously encouraged by our performance in this market.” In North America, Mr. Kent said he sees some improvement. “There are some healthier signs from the U.S. consumer right now than it was 12 months ago at this time,” he said. “In terms of more travel, more mobility, more bookings; and mobility is an important factor for our business, for consumer goods.” g Compared to 12 to 16 months ago, Mr. Kent said Coca-Cola is seeing ith some healthier numbers today in terms of consumers eating out more. With can the caveat that gas prices don’t continue to rise, he believes North American consumers will continue to eat out more. “In China, we’ve all seen economists lower their 2012 G.D.P. growth rate forecast,” he said. “While we agree that there has been some moderate slowdown in China, we also believe that this is a natural progression and that it is a positive for the long-term sustainable growth of the country. As we move through 2012, we anticipate that our business in China may not be immune to this cooling economy; therefore, we may also see our volume results in China moderate to some extent.” In Brazil, Mr. Kent said that after a “cooling down” period in 2011, there are now signs of improving consumer sentiment in the country. “We expect this trend to hold, as we move through the balance of 2012 with our business in Brazil continuing to gain market share,” he said. BBN

Family Dollar, PepsiCo ink beverage deal
MATTHEWS, N.C. — Family Dollar Stores, Inc., which operates 7,100 stores in 45 states, has reached agreement with Purchase, N.Y.-based PepsiCo, Inc. to sell the latter company’s beverages. The multi-year partnership provides Family Dollar customers with more beverage choices, while expanding the retailer’s base of national brands. “At Family Dollar, our goal is to provide our customers with choice, value and convenience,” said Michael Bloom, president and chief operating ofﬁcer of Family Dollar. “Our partnership with PepsiCo complements our current offerings and gives our customers more of their favorite beverage products, including Pepsi, Mountain Dew and Lipton teas.” Al Carey, chief executive ofﬁcer of PepsiCo Americas Beverages, said the partnership will allow PepsiCo to market its beverage brands alongside its FritoLay snacks at the stores. Family Dollar also offers other PepsiCo brands such as Gatorade and Quaker products. BBN

Ocean Spray building bottling plant in Pennsylvania
LEHIGH VALLEY, PA. — Ocean Spray Cranberries, Inc. has broken ground on a new juice bottling plant in the Upper Macungie Township of Pennsylvania. The new facility represents a $110 million investment and will consist of 315,000 square feet to bottle Ocean Spray juices and Nestle’s Juicy Juice products. In total, the facility will produce more than 32 million cases of beverages a year. The facility is expected to be completed during the fall of 2013, and the company plans to pursue a Gold LEED certiﬁcation for the building. It will replace a manufacturing facility in Bordentown, N.J. BBN

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April 24, 2012

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