Thursday, February 6, 2014

Coca-Cola in Capsules. Soda Companies Making Moves in the Beverage World. First Zico Coconut Water and now Green Mountain.

Coca-Cola in a Capsule. Coca-Cola Makes Moves in the Beverage World. First Zico Coconut Water and now Green Mountain. 

MarketWatch


Partnering with Coca-cola via a 10-year deal, Green Mountain will make and sell Coca-Cola-branded pods to go with the machine.

Earlier this year Coca-Cola acquired pioneering Coconut Water Brand--Zico Beverages LLC. Now Coca-Cola just took a 10 percent stake in Green Mountain Coffee Roasters, Keurig single-serve coffee brewer.

Basically, buy a pod, put it in a machine, and get Diet Coke, Sprite, Dr. Pepper in your homes or offices in a cup.
 
Smart Move Coca-Cola. 

Markets: Thursday Trading: $KO up 1 percent, $GMCR up 30 percent 

Soda companies are making big moves within the beverage industry--reaching out to other trendy drinks. Pepsi-Co is also on the red carpet introducing QUA (subject to change). This competes with Coca-Colas Smart Water. 


AP: "Qua is made with tap water. The brand, which PepsiCo says is "micro-filtered" and free of sodium, is slated to be tested regionally in California this summer before expanding to other markets."
Soda Market: Soda spending and consumption, especially diet, has declined due to health-conscious consumers. So what's healthier (and sexier) than water? Luxurious looking Water. 

AP

AP: "Bottled waters have surged in popularity over the years and represent an important opportunity for Coca-Cola and PepsiCo, which are struggling to sell more soda. Since hitting a peak in 1998, U.S. soda consumption has been on a downward trend, and declines have accelerated in recent years. 
The problem with run-of-the-mill bottled waters, however, is that people tend to just buy whatever's cheapest. Coke's Dasani and Pepsi's Aquafina, for example, don't exactly have sexy images that make people willing to pay more for them. So the companies are focusing on brands they can market as being premium, thus commanding higher prices."
CNNMoney: "It's a concern on the mind of Pepsico (PEP,Fortune 500) CEO Indra Nooyi, who told investors in October that her company has seen "a fundamental shift in consumer habits and behaviors," adding that "the diet slowdown has been a little more rapid than we expected." 

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