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oca-Cola Zero Sugar is driving cola category growth, with a 26% increase in value and an additional 7.7million transactions delivered through the brand in 2017 versus prior year. While the zero sugar brand accounts for 17% of all cola sales in the grocery channel, it currently delivers just 1% in the on-trade, representing a huge opportunity for growth. To help capture this growth opportunity for its on-trade partners in 2018, Coca-Cola HBC Ireland and Northern Ireland has launched a new 200ml glass pack for mixability, in addition to the 330ml pack for the ‘straight-drinking’ or ‘with food’ occasion. The expansion in pack range for CocaCola Zero Sugar comes in advance of the introduction of the Government’s tax on sugar-sweetened soft drinks, which is scheduled to come into effect from April 6, 2018. As a direct result of the government tax, the price per litre of Coca-Cola Classic will increase from that date, but the no sugar options in the Coca-Cola range, Coca-Cola Zero Sugar and Diet Coke, are not affected by the sugar-sweetened drinks tax. In line with ongoing efforts to respond to consumers’ changing tastes and demands, Coca-Cola is continuing its focus on its ‘Hero Zero’ marketing strategy, which makes low and no sugar variants the easier choice for consumers. These variants, which are tax exempt, will also offer greater value for wholesalers, retailers and consumers from April 2018. Across the island of Ireland, CocaCola HBC already sells more low and no-sugar beverages than any other company. Forty-three percent of all cola sold has no sugar and the company envisages that this will increase to greater than 55% by 2020. In addition to a continued marketing drive behind the no-sugar drink, this ambition will be achieved through the increase in distribution of Coca-Cola Zero Sugar across all licensed outlets with the newer 200ml and 330ml packs. Matthieu Seguin, general manager, Coca-Cola HBC Ireland and Northern Ireland, explains: “In line with our overall strategy, we are increasing the marketing and availability of Coca-Cola Zero Sugar across licensed outlets. “The introduction of the new 200ml glass pack, in addition to the 330ml pack, comes in advance of the introduction of the Government’s tax on sugar-sweetened soft drinks which will come into effect in April. As a direct result of this tax, the price per litre of CocaCola Classic will increase. However, our ‘zero sugar’ colas will be exempt from the soft drinks levy, offering value for both consumers and our retail partners. “We are continuing our reformulation programme to reduce sugar across our portfolio, while retaining the same great taste www.hospitalityreviewni.com
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of our drinks. By April 2018, more than 60% of our sales volume will be made up of drinks with less than 5g sugar/100ml and will, therefore, be tax exempt.” Since 2010, Coca-Cola has reduced sugar across its portfolio by approximately 13%. While the recipe for Coca-Cola Classic will remain unchanged, sugar reductions have already been made in most other brands across the Coca-Cola HBC range. Following initial reformulation of Fanta Orange in 2017, it will undergo further sugar reduction ahead of April 2018 to bring the sugar content below 5g per 100ml. Furthermore Sprite, which is already a mid-calorie drink, will move to no sugar in Q1 2018. Thanks to these efforts, both Fanta Orange and Sprite will be exempt from the government’s tax on sugar sweetened soft drinks. As the core Schweppes range continues to deliver growth in the category, all key variants will be reformulated to reduce sugar to less than 5g sugar per 100ml. The new lower sugar recipes for Tonic, Bitter Lemon, Elderflower, and Ginger Ale will ensure that they will be tax exempt and affordable. This work is part of ongoing efforts across the globe to respond to consumer needs and will also help to reduce the impact of the new government tax on sugar-sweetened drinks on retailers and consumers alike. Across the on-trade, the only drinks from the Coca-Cola HBC portfolio that will be applicable for the new tax will be Coca-Cola Classic, Monster Original, Schweppes White Lemonade, and the premium 1783 range from Schweppes. From April 2018, the sale cost of relevant products to our retail and wholesale partners will include the cost of the new Government tax. It will be applied to all products subject to the tax and in line the taxation bands. It will also be reflected in our recommended sale prices (RSP). However, as always, the sale prices of our products are at the discretion of our wholesale and retail partners.
“As a direct result of this tax, the
price per litre of Coca-Cola Classic will increase. However, our ‘zero sugar’ colas will be exempt from the soft drinks levy, offering value for both consumers and our retail partners.”
Matthieu Seguin, general manager, Coca-Cola HBC Ireland and Northern Ireland
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