Sparkling shift: Coca-Cola Hellenic tracks growth of no/low calorie beverages
In its Q3 2018 trading update this morning, Coca-Cola Hellenic reported a ‘successful quarter’ for sparkling beverages, which grew by 4.7% despite a strong prior-year period with 2.7% volume growth, with good performances across all its markets except Italy, Nigeria and Switzerland.
No and low calorie sparkling variants grew by 25.9% in the quarter, much faster than full sugar variants, which grew 2.1%.
Sparkling shift
The shift towards lower calorie products is driven by consumer demand, while in Ireland the new sugar tax is also having an effect.
“The shifting consumer preferences towards low-calorie products is particularly evident in Austria, with all of the growth in the Sparkling category driven by Coca-Cola Zero, Fanta Zero and the newly launched Sprite Zero,” observes Coca-Cola Hellenic.
Although the overall sparkling category in Italy declined, zero-calorie variants such as Coca-Cola Zero, Coca-Cola without calories and with Stevia (similar to Coca-Cola Life in other markets) and Fanta Zero all grew.
In Greece, 'positive performance' for sparkling was driven by sugar-free Coca-Cola Zero, zero-calorie Fanta and Sprite variants and by flavour innovations such as Mastic mint and Lemon in Schweppes.
The UK and Ireland both introduced sugar taxes on sugar-sweetened beverages earlier this year, and Coca-Cola Hellenic says the impact has been a shift towards low and no sugar variants.
“Northern Ireland and Republic of Ireland implemented a sugar tax on soft drinks in the second quarter of the year. So far, the reaction from our customers and consumers has been in line with our expectations, with a shift in volume from full-sugar to low- and no-sugar variants.”
Great Britain has seen a similar shift, with Coca-Cola Classic volumes declining but Zero Sugar volumes up 50%.
Coca-Cola Hellenic Q3
Releasing its Q3 trading update this morning, Coca-Cola Hellenic Bottling Company reported net sales revenue growth of 4.5% on a currency-neutral basis and 2.6% on a reported basis compared to the prior-year quarter. Volumes increased 4.2% in the quarter, with strong performances in the developing markets and the emerging markets.
