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Coca-Cola products may look a tad different in 2023

Package innovation takes a bigger role and the company will approaching 2023 with a broad innovation agenda but with some slight weighting to packaging, CEO James Quincey has said

By  Moneycontrol NewsOct 27, 2022 1:30 PM
Coca-Cola products may look a tad different in 2023
With ongoing sale in smaller containers and multi-packs with fewer cans, the company introduced a value collection in the third quarter that offered the customers their products in multiple sizes (Representative image via Unsplash)

Same cola but probably in new bottles, cans or even value packs. Coca-Cola is aiming to add more variation to its cans and bottles to offer cash-strapped consumers more options, CNN Business has reported.

During an analyst call on October 25 discussing third-quarter results, CEO James Quincey said, “Package innovation takes a bigger role. We will be approaching ’23 with a broad innovation agenda, but with some slight weighting to packaging.”

The idea is to offer more variety of bottles and cans to consumers who are otherwise worried about spending.

Quincey said it was about extending the price ladder. “..Making sure the entry price point … becomes as low down in the price spectrum, the actual out-of-pocket, as possible,” he added.

The beverage giant booked stronger-than-expected sales in the third quarter as it hiked prices around the world and raised its revenue expectations for the year, the Associated Press reported.

The company expects organic revenue growth of 14 percent to 15 percent, up from the 12 percent to 13 percent it predicted at the end of the second quarter.

The CEO said price point was more important than price per litre, as people begun to spend less at grocery stores. “That’s absolutely what we’re pursuing,” he said.

With ongoing sale in smaller containers and multi-packs with fewer cans, the company introduced a value collection in the third quarter that offered the customers their products in multiple sizes.

The CEO also said returnable containers were another way to lower costs, as the brand gave back cash in return for empty bottles and cans.

The company plans to sell a quarter of its beverages across the globe in refillable and returnable containers by the year 2030. These strategies could help cushion the blow of higher prices.

“There’s going to be above normal input costs. So we are expecting pricing to be ahead of normal next year on top of what’s happened this year,” Quincey told CNBC.

The company was looking at multiple other changes like “adding more premium options for those that still have plenty of disposable income”, Quincey said during the analyst call.

The brand plans to continue their growth driver, the Coke Zero Sugar, with more innovations and marketing strategies.

Bullish on India

Coca-Cola’s pricing and other strategies are bearing fruit. In the third quarter, its net revenue increased by 10 percent to $1.1 billion, which was ahead of the $10.5 billion Wall Street forecast, according to analysts polled by FactSet.

The company also said its lemon and lime-flavoured soft drink Sprite had become a billion-dollar brand in India. “Sprite has grown to become a billion-dollar brand in the market (India), driven by the success of locally adapted, occasion-based global marketing campaigns,” Quincey said.

The company recorded a strong volume growth in its India business in the third quarter of 2022, helped by its sparkling soft drinks portfolio and fruit drink brand Maaza.

"Trademark Coke delivered strong growth through effective execution and occasion-based marketing. We drove 2.5 billion transactions in India at affordable price points through the expansion of returnable glass bottles and single-serve PET packages," Quincey said..

(With inputs from CNN Business, AP)

First Published on Oct 27, 2022 1:30 PM