Coca-Cola joins hands with Green Mountain Coffee to expand channels

Recently, Coca-Cola and Green Mountain Coffee have posted news of their cooperation on their official websites.

Coca-Cola said it had bought a 10 per cent stake in Green Mountain Coffee, a coffee roaster, for $1.25 billion, or $74.98 a share, and signed a 10-year cooperation agreement with Green Mountain Coffee for a household cold drink system. In order to form a long-term alliance of interests, Coca-Cola will also use its strong distribution network to promote the family beverage system.

According to the data, Green Mountain Coffee has become a "coffee giant selling cups" in the United States with its famous single-cup coffee marketing model. With its special single-cup coffee maker and Krieger K cup, which makes only one cup of coffee at a time, Green Mountain Coffee has successfully entered 13% of households in the United States.

According to financial data, sales of Green Mountain Coffee reached $1.39 billion in the first quarter of 2014, an increase of 4% over the same period last year, of which about 94% came from coffee machines and matching coffee cups.

In response, Wang Yinghua, an analyst at Qilu Securities, pointed out that Coca-Cola's involvement in the family beverage system stems from the huge contrast between the slowing growth of the current brewed coffee and carbonated beverage market and the rapid growth of household single-cup coffee (beverage).

Previously, the "Analysis report on the Operation status of China's Beverage Industry in the first three quarters of 2012" by the Industry Enterprise Information release Center of the National Bureau of Statistics pointed out that from the trend of changes in the structure of beverages in recent years, the market share of carbonated drinks will gradually decline, while functional drinks and healthy drinks will develop rapidly, of which the market share of carbonated drinks has dropped to 21.9%. It lags behind 25.7% of drinking water and 22.2% of fruit juices.

In fact, the growth of cola beverages as a whole has been very weak in recent years, and Coca-Cola's global performance has also declined. In the second quarter of 2013, Coca-Cola's sales fell 2.57% year-on-year, while net profit fell 4%, according to financial data.

Xu Xiongjun, a marketing expert in the food and beverage industry, pointed out that although carbonated beverage companies have begun to make efforts in interactive marketing since last year, they are still unable to recover the decline in carbonated beverage sales.

Zhao Yanhong, spokesman for Coca-Cola in China, told the Daily Business News that with the development of the times, the expansion of sales channels and categories are constantly changing and updating, and it may not all become mainstream things. but Coca-Cola will try all kinds of channels and marketing methods.

Author: he Wenting

Recently, Coca-Cola and Green Mountain Coffee have posted news of their cooperation on their official websites.

Coca-Cola said it had bought a 10 per cent stake in Green Mountain Coffee, a coffee roaster, for $1.25 billion, or $74.98 a share, and signed a 10-year cooperation agreement with Green Mountain Coffee for a household cold drink system. In order to form a long-term alliance of interests, Coca-Cola will also use its strong distribution network to promote the family beverage system.

According to the data, Green Mountain Coffee has become a "coffee giant selling cups" in the United States with its famous single-cup coffee marketing model. With its special single-cup coffee maker and Krieger K cup, which makes only one cup of coffee at a time, Green Mountain Coffee has successfully entered 13% of households in the United States.

According to financial data, sales of Green Mountain Coffee reached $1.39 billion in the first quarter of 2014, an increase of 4% over the same period last year, of which about 94% came from coffee machines and matching coffee cups.

In response, Wang Yinghua, an analyst at Qilu Securities, pointed out that Coca-Cola's involvement in the family beverage system stems from the huge contrast between the slowing growth of the current brewed coffee and carbonated beverage market and the rapid growth of household single-cup coffee (beverage).

Previously, the "Analysis report on the Operation status of China's Beverage Industry in the first three quarters of 2012" by the Industry Enterprise Information release Center of the National Bureau of Statistics pointed out that from the trend of changes in the structure of beverages in recent years, the market share of carbonated drinks will gradually decline, while functional drinks and healthy drinks will develop rapidly, of which the market share of carbonated drinks has dropped to 21.9%. It lags behind 25.7% of drinking water and 22.2% of fruit juices.

In fact, the growth of cola beverages as a whole has been very weak in recent years, and Coca-Cola's global performance has also declined. In the second quarter of 2013, Coca-Cola's sales fell 2.57% year-on-year, while net profit fell 4%, according to financial data.

Xu Xiongjun, a marketing expert in the food and beverage industry, pointed out that although carbonated beverage companies have begun to make efforts in interactive marketing since last year, they are still unable to recover the decline in carbonated beverage sales.

Zhao Yanhong, spokesman for Coca-Cola in China, told the Daily Business News that with the development of the times, the expansion of sales channels and categories are constantly changing and updating, and it may not all become mainstream things. but Coca-Cola will try all kinds of channels and marketing methods.

Author: he Wenting

FrontStreet Coffee is a long-established specialty coffee roaster in Guangzhou China, selling freshly roasted beans from its own farm in Yunnan as well as dozens of carefully selected single-origin beans from around the world for both pour-over and espresso. The products deliver consistently excellent quality and great value, with shipping within 24 hours. Guangzhou’s FrontStreet Coffee shop is recommended by many coffee lovers, and the beans are now available online at the Tmall 。

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