just On Call - Coca-Cola Enterprises CEO shines light on pricing talks
Coca-Cola Enterprises posted its Q1 results today
Speaking to analysts today, John Brock said that the company's discussions with Coca-Cola are ongoing, but noted that he is under no pressure to strike a deal over concentrate margins. "The agreement automatically renews unless we agree to change it, so it's a pretty relaxed situation," Brock said.
The talks are more about "simplifying or streamlining" the current agreement between the two companies, Brock added.
In Q1 results released today, CCE posted a fall in reported profits and sales as European currencies weakened against the US dollar. Net pricing, meanwhile, was down 2% but the company predicted pricing growth in its full-year outlook.
Asked by analysts how CCE expects to increase pricing though the year, management highlighted promotions around the 100th anniversary of the Coca-Cola Contour bottle and Coca-Cola's sponsorship of the Rugby World Cup this year.
Brock today also hinted at a possible deal with Coca-Cola over its Innocent range of fruit juices and smoothies. The CEO said CCE has had "a variety of conversations about opportunities of working together" over the UK brand - which is currently handled by Coca-Cola - but has so far failed to reach an agreement.
"We will continue to have those conversations and it is entirely possible that we might conclude that there is something for us to do together," Brock added.
Coca-Cola took a 100% stake in Innocent in 2013 after first investing in the company in 2009.
It was announced in August 2015 that Coca-Cola Enterprises will merge with Coca-Cola Iberian Partners and Coca-Cola Erfrischungsgetränke AG to create Coca-Cola European Partners....
The creation of Coca-Cola European Partners create a unified European entity for Coca-Cola, with this operating in nearly all Western European countries....
Coca-Cola Enterprises (CCE) is planning to roll out new Monster energy drinks in Europe, ahead of its expected bottler merger in the region....
Coca-Cola Co saw its share of the global HW soft drinks slip between 2009 and 2014, primarily due to its dependence on BFY reduced sugar carbonates....
- Five ways small brands can beat big players
- Interview, Bulldog Gin founder Anshuman Vohra
- The end is nigh for Global Travel Retail - Comment
- Pernod Ricard Q1 2017 results by region, brand
- Interview, Bulldog Gin CEO Anshuman Vohra, Pt II
- Diageo most at risk to Thai alcohol ban - analyst
- Stumbling UK Pound prompts Conviviality price hike
- Jobs at new India hub won't affect staff - Diageo
- AB InBev fund ZX Ventures buys homebrew co
- Edrington’s The Macallan 40 Year Old - NPD
- Global gin insights - market forecasts, product innovation and consumer trends
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends
- Global rum insights - market forecasts, product innovation and consumer trends
- Global Wine Market 2016-2020
- Global RTD insights - market forecasts, product innovation and consumer trends