“We’ve had a strong first half of the year,” President CEO James Quincey said during a call with analysts. “Our performance reflects the ongoing cultural shifts in our business… we’re embracing change, focusing on growth with discipline and we’re becoming increasingly entrepreneurial in spirit.”
The company’s approach to driving disciplined, sustainable growth is grounded in a keen understanding of the local consumer to build the right portfolio in each market through innovations, acquisitions and “lifting, shifting and scaling” successful brands from market to market.
Brands like Fuze Tea, Honest Coffee and AdeS/AdeZ plant-based drinks are off to a solid start in Europe, Quincey noted.
“But disciplined growth also requires that our existing brands retain and sharpen their edge by connecting better with consumers’ needs,” Quincey said.
For example, Georgia Coffee in Japan recently launched a new variant called Craftsman, with recipes, flavors and premium packaging designed to appeal to previously under-tapped consumers, including young adults and women. Craftsman helped Coke’s coffee portfolio in Japan reverse recent trends and grow volume mid-single-digits in the second quarter.
This tailored approach to consumption occasions and channels is one way
These efforts are part of the company’s broader strategy to reinvigorate the sparkling category, which fueled 2% global volume growth in the quarter.
“It’s about leveraging brand edge and innovation to build consumption rituals by offering people what they want, when and where they want it,” Quincey said.
Retail value of
Eliminating ‘Zombies’ and Focusing on Work That Matters Most
The company is aggressively retiring “zombie” brands and shifting focus to high-return opportunities. In 2018, Coke’s Middle East and North Africa business unit identified more than 125 underperforming products for elimination. To date, 60% of these drinks have been discontinued, and the rest will be delisted by end of year.
“Given the benefits we’re seeing, we are now embedding the elimination of zombie SKUs and brands into existing routines, instilling this discipline deeper into all of our business units,” Quincey said.
By focusing only on “work that matters the most,”