CCE says North American volume up +0.5% in 1st quarter, with pricing up +4%. CEO John Alm says pricing growth in rest of 2004 will be "solid," but rate of growth will be less than in 1st quarter. COO David Van Houten says company confident re +1.5% volume growth for full year. Cold drink placements cool. CCE says it will place 50% less cold-drink equipment in 2004/2005 than originally anticipated. COO David Van Houten says that "will give us a chance to catch our breath, as cold-drink channel has slowed down." CCE will also re-deploy some existing cold-drink equipment to accounts like Home Depot. Coke will pay. CCE says cost of recent Dasani purified water recall in U.K. "will be absorbed" by Coca-Cola Co.
Coke C2 details. Alm calls June debut of Coke C2 mid-cal cola (BD 4/19/04) "major brand introduction," which will backed by "substantial promotion." C2 will be launched in 20-oz PET plus 8-can Fridge-packs and 18-can packs. Alm says 8-can Fridge-pack "will initially be unique to C2" and will allow "premium pricing." Van Houten says Coke C2 "will be supported by a lot of great advertising and marketing." Launch set for June 11.
New concentrate model with Coke. On Dec. 17, CCE said its goal re timing for new concentrate pricing model with Coke was "to have something in place by mid-year 2004." But in April 28 statement, CCE now says its expects "evaluation process to continue through 2004 for possible implementation in 2005." Asked if management transition at Coke has anything to do with delay, chairman Lowry Kline tells investors: "We believe the discussions (with Coke) will continue and not be interrupted by any management changes." Alm says he envisions approval in 4th quarter by both Coke and CCE "so it can be implemented by early 2005."
This
and all past issues of Beverage Digest are for sale.
