Mini Cans Bring Brisk Business to Coca-Cola, Attracts Millennials
Coco-Cola strikes the right chord by introducing small size cans, especially youngsters.
The taste of Coco-Cola has been attracting many to its flavor. Now, the new small 7.5-ounce can is adding new customers, bringing in strict diet followers too, says the CEO in the conference call.
CEO James Quincey states that the mini-cans have increased sales by 15 percent in the U.S. alone, for this quarter. Brand Coco-Cola Zero Sugar has brought double-digit sales by adding Zero Sugar to its name.
Quincey says that even the Millennials are attracted to the small-sized sodas. The cans have reduced calories and sugar. Mini cans contain 90 calories and 25 grams of sugar, while the standard cans (12 ounces) contain 140 calories and sugar 39 grams.
The company expects to introduce its own energy drink by next year in the U.S. it will introduce Coco-Cola Energy as well as Coco-Cola Energy Cherry by January 2020. It will also be available in a zero-calorie version, says the company.
Shares of Coco-Cola have increased by 2 percent on Friday when the company reported good sales volume.
Coco-Cola continues to lag behind competitor Pepsi. Through its diverse product mix, Pepsi has been able to show strong earnings and sales. Strong sales come from Quaker Oats, Frito-Lay snacks, and Gatorade says Pepsi.
Shares of Pepsi (PEP) have shot up by 25 percent this year; while that of Coke is comparatively lower at 16 percent increase, for 2019.
CEO Quincey wants the company to become a “total beverage company”. This can be done by increasing its product portfolio with the Coke name attached. Gold Peak Tea sales have been brisk in North America. Coke expects sales in tea and coffee to grow at a faster pace in global regions.
Coke has a 19 percent stake in Monster Beverage, the energy drink maker. It has purchased Costa this year for $5 billion.