Image source: Delish
Coca-Cola is a company that thrives on innovation and constantly experiments with new tastes and experiences online.
Now Coca-Cola wants to innovate again with a new look for its drinks.
The beverage company wants to add more variety to its cans, bottles and value packs.
Coca-Cola wants to offer customers more options, even if paying more for less.
CEO James Quincey shared the idea during an analyst call about the third-quarter results on Tuesday.
“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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A company with the prestige of Coca-Cola offers multiple types of containers to attract customers worried about their groceries.
While prices are still rising, there is still demand for Coke products.
“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 today as Coca-Cola sees consumers restrict spending with prices rising.
Shoppers are already spending less in supermarkets.
“Therefore, the price point becomes even more important than the price per litter,” Quincey added.
“That’s absolutely what we’re pursuing.”
While consumers may pay more per liter when buying smaller packs, other consumers are willing to trade in for lower prices.
Their decision stems from the fact that they cannot afford more expensive items.
Containers and packs
Coca-Cola already sells smaller containers and multi-packs that have fewer cans.
The company introduced a value collection in the third quarter that offers customers products of different sizes.
The items are only available in some stores in the United States.
According to Quincey, they help retain and acquire more consumers while creating value for Coca-Cola’s customers.
James Quincey also points out reusable containers are an alternative to reduce costs.
Consumers can get a refund for the return of bottles and cans.
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Coca-Cola Goals and strategies
The company announced earlier this year that it aims to sell a quarter of all of its drinks worldwide.
They plan to reach the goal by using reusable or reusable containers by 2030.
Coca-Cola also recently announced that it is changing the design of the Sprite bottle.
The company is replacing its distinctive green look with clear plastic, which is easier to recycle.
Coca-Cola’s strategies can offset the impact of high prices on consumers.
The company believes inflation and volatility in the commodity market will affect 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 expects further changes in the future.
During the analyst call, James Quincey said they would add more premium options for people with disposable income.
The company also plans to continue pushing Coke Zero Sugar with improved marketing and other innovations.
Coca-Cola’s pricing and innovation strategy are currently working as net revenues increased 10% to $1.1 billion in the third quarter.