Image source: Delish
Coca-Cola is a company that thrives on innovation and constantly experiments with new flavors and experiences for its loyal customers.
Now Coca-Cola is looking to innovate with a new look for its drinks.
Package innovation
The beverage company wants to diversify its cans, bottles and value packs.
Coca-Cola will offer more options to its customers, even if they pay more for less.
Company CEO James Quincey shared the idea during an analyst call on Tuesday’s third-quarter earnings.
“Package innovation takes a bigger role,” said Quincey.
“We will be approaching ’23 with a broad innovation agenda, but with some slight weighting to packaging.”
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Consumers
A company of Coca-Cola’s status offers different types of containers to attract customers who are concerned about their groceries.
There is still Coke product demand even though prices are rising.
“It’s about extending the price ladder,” Quincey explained.
“Making sure the entry point… becomes as low down in the price spectrum, the actual out-of-pocket, as possible.”
The extension is needed now as Coca-Cola is witnessing consumers limit spending amid rising prices.
Shoppers are now spending less on groceries.
“Therefore, the price point becomes even more important than the price per litter,” Quincey added.
“That’s absolutely what we’re pursuing.”
Consumers can pay more per liter when buying smaller packs, but others are willing to bargain at lower prices.
Their decision comes from the fact that they cannot afford pricier items.
Containers and packs
Coca-Cola sells smaller containers and multi-packs with fewer cans.
However, the company launched a value collection in the third quarter, offering customers a variety of product sizes.
Items are only available in select stores across the United States.
According to Quincey, they help retain and attract more customers while creating value for Coca-Cola customers.
James Quincey also points out that reusable containers are a cost-cutting alternative.
Consumers can get their money back for returning bottles and cans.
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Goals and strategies
The company announced earlier this year that it would try to sell a quarter of all of its drinks worldwide.
They plan to reach the goal by 2030 with reusable or reusable containers.
Coca-Cola also announced that it will change the design of the Sprite bottle.
The company is replacing the distinctive green look with clear plastic, making recycling easier.
Coca-Cola’s strategies can offset the high prices for consumers.
The company believes inflation and volatility in the commodity market will impact its costs and continue to drive up prices.
“There’s going to be above normal input costs,” said Quincey.
“So we are expecting pricing to be ahead of normal next year on top of what’s happened this year.”
Coca-Cola is expecting more changes in the future.
During the analyst’s call, James Quincey said they would add more premium options for people with disposable income.
The company also plans to continue promoting Coke Zero Sugar by improving marketing and other innovations.
Coca-Cola’s pricing and innovation strategy still work as net revenues increased 10% to $1.1 billion in the third quarter.
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