US: Coke president sees C2 hitting sales
The president and COO of Coke believes his company's new C2 soft drink will hit sales of regular Coke and other drinks. Speaking to CNBC yesterday, Donald Knauss said: "We do see some cannibalisation (of regular Coke sales)."
Knauss said that the company estimates between 50% and 55% of the volume coming from C2 will be "incremental to our business, which is pretty high" with 10% to 15% of that volume coming from other categories like water and other non-carbonated drinks. "It's not just going to cannibalise the sugar soft drink industry," he said, "It's going to go after some of these other categories as well."
Diet Coke sales are unlikely to be hit, however, Knauss said. "We don't think Diet Coke users are going to give up their 0 carbs and 0 calories for something that comes back into the middle," he said. "There are a number people, and our research shows it's over 100m people in this country alone, who don't want to compromise on taste, but do want to cut carbs and calories."
Coke announced the launch of the new drink, with half the carbohydrates, calories and sugar of regular cola, in Los Angeles on Monday.
C2 will appear on store shelves across the US early next month.
Sectors: Soft drinks
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