Andy Morton

just On Call - Coca-Cola Enterprises boss keeps faith with sparkling beverages

By | 7 February 2013

CCE is confident of a better 2013

CCE is confident of a better 2013

The CEO of Coca-Cola Enterprises (CCE) has argued that "sparkling" beverages is a “great category” that will return to growth in 2013.

During a conference call with analysts today (7 February), John Brock said that if last year's bad weather stays away he is confident sparkling drinks, or CSDs, can shake off a recent malaise. The category posted a 3.5% volumes drop in CCE's full-year figures, released today, and a 5.5% Q4 volumes fall, hampered by record rainfall across Europe.

Other soft drinks companies that serve Europe also saw volumes decreases last year because of the weather, including Britvic in the UK and Ireland

“We're not expecting spectacular weather (this summer),” Brock. “We're hoping for a normal one.” 

He added: “We remain convinced the sparkling category is and will be a growth category for the future. Clearly there are macroeconomic issues, but it doesn't matter. We are in a great category and we think it'll return to growth in 2013 and beyond.” 

Brock also said it is unlikely the French Government will repeal its excise tax rise on soft drinks, implemented last year. CCE has blamed the tax for hampering growth in France last year, but said the hike is now behind the company and expects the market to return to normal. He said that while CCE lost European market share in volume and value last year, France gained volume share.

Energy drinks were a high point for CCE, gaining a 1% volume and value share. The category was up by 15% in CCE's full-year results compared to last year.

“It's still a relatively small part of our portfolio, around 3% but it continues to perform well,” Hubert Patricot, executive VP & president of CCE's European group, said. “We are encouraged that it will continue to grow at the same speed in 2013.”

Expert analysis

Coca-Cola Enterprises, Inc. (CCE) - Financial and Strategic SWOT Analysis Review

Coca-Cola Enterprises, Inc. (CCE) engages in marketing, production, and distribution of non alcoholic beverages. The product portfolio of the company includes energy drinks, sparkling waters, juices, sports drinks, fruit drinks, coffee-based beverages, tea and non alcoholic beverages. Its products are sold under the brands. In addition, CCE is also engaged in the distribution of Dr Pepper and other notable brands. CCE serves consumers throughout Belgium, continental France, Great Britain, Luxembourg, Monaco, the Netherlands, Norway, and Sweden. The company’s focuses on utilizing its operational and marketing capacity and leveraging the upcoming events including London Olympics and the European soccer championships. The company is headquartered at Atlanta in Georgia, the US.

Sectors: Company results, Soft drinks

Companies: Coca-Cola Enterprises, Britvic

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