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Beverages Insights

Beverages Insights

Insight | Portfolios

Brand leaders add strength across portfolio

Many large-scale beverage companies have a diverse range of brands within their portfolio, covering multiple drink categories such as carbonated soft drinks, juices, waters, flavored waters and energy drinks. In the UK, the Lucozade Ribena Suntory portfolio includes a whole range of drink brands, some of their largest being Lucozade Energy, Ribena and Lucozade Sport. Each of these brands have launched sub-brands such as Lucozade Energy Zero, a sugar free alternative to Energy; Ribena Frusion, infused blackcurrant water; and Lucozade Sport Fitwater, purified spring water with added electrolytes. It’s important when launching new sub-brands into the category to leverage the credentials and heritage of their masterbrands and to consider the halo effect promoting one brand has on another. Within the LRSuntory portfolio, Ribena, Lucozade Energy and Orangina have been reformulated to reduce the amount of sugar and calories per bottle.

Charlotte Allchin

Planning Manager

MediaCom

Charlotte.Allchin@mediacom.com

Insight | Occasions

Coke-Costa adds occasions and caffeine

In looking at the Coca-Cola portfolio, it makes sense to think about both the occasion and function that a beverage provides. I would imagine that Coca-Cola sees the acquisition of Costa Coffee as catering to an occasion (mornings) in a way that its soft drink brands don’t tend to, while acting as a functional complement (energy boost) to Coca-Cola Energy, Powerade, and Relentless.

Cole Ryan

Senior Director

PSB

CRyan@ps-b.com

Insight | Portfolios

Brands ladder up to overall growth vision

The Coca-Cola Company has a broad portfolio of brands—brands of different sizes that cater to a spectrum of audiences, need states and occasions. It’s all part of the ambition to become a “total beverage company.” While the super brands in the portfolio are still crucial to overall business volume, in an increasingly competitive marketplace it is vital that companies can identify new pockets of growth from previously untapped sources—new products, new routes to market, new occasions. Communications for each of the brands has therefore had to evolve to reflect this new way of thinking. However, for the super brands (the likes of Coca-Cola Original Taste and Diet Coke), the established marketing principle of reaching all category buyers still applies. But in an increasingly fragmented, personalized, and algorithm driven media landscape finding mass-scaled moments of cultural attention is proving harder to do. Activations like the sponsorship of the Premier League of English football provide a great platform to talk about a wide range of Coca-Cola products against the backdrop of a massively popular and culturally relevant event.

Ed Turner

Business Director

MediaCom

Ed.Turner@mediacom.com

Insight | Growth

Plant-based drinks grow in popularity

Volume growth of carbonated soft drinks is not at the level the brands would like to see, but growth is steady. Value is looking reasonably healthy. Other beverages, like energy drinks and plant-based drinks, are growing faster, and as consumers look for healthier options, the strong growth we see currently for plant-based looks set to continue. Last year, a third of households in Great Britain bought some type of plant-based drink. In Europe, Coke launched AdeZ, a plant-based drink from Latin America it had acquired from Unilever. Permissibility is the key. Because of health concerns, the carbonated beverage brands are moving into more permissible markets.

Mark Foster

Consumer Insight Director

Kantar

Mark.Foster@kantar.com

Insight | Occasions

Multiple brands serve various occasions

Coke tried to extend its equity in the Coke brand variants/range/portfolio by utilizing the color red, a Coke strong brand asset. But Coke is also finding new brands to fit new occasions. It’s not about drinking red Coke 25 five times a day. With a portfolio it’s about having a separate brand for each occasion, rather than one brand for multiple occasions.

Sasha Mukhanova

Client Director

Kantar

Sasha.Mukhanova@kantar.com