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Coffee bean pack sales will account for a larger slice of Coca-Cola HBC's Costa Coffee rollout than RTDs, the group CEO has forecast.

Zoran Bogdanovic said Costa Coffee RTDs will only be a part of CCHBCs "360-degree" coffee offering

Zoran Bogdanovic said Costa Coffee RTDs will only be a part of CCHBC's "360-degree" coffee offering

Zoran Bogdanovic said Costa Coffee-branded beans sold to homes and restaurants will be the major component of Coca-Cola HBC's coffee play, made possible by The Coca-Cola Co's acquisition of the Costa franchise last year. RTDs, including the Costa Coffee range already on sale in the UK and set to roll out in CCHBC markets this year, will play a smaller role.

Speaking to analysts after the release of full-year results on Thursday, Bogdanovic said capsules for in-home or at-office machines and express vending machines will round out CCHBC's Costa offering.

"This is a 360-degree approach to coffee, across all channels and with various product formats and types," Bogdanovic said. "We plan to be positioned in retail in the coffee section, as we really believe that there is a clear customer proposition."

The CEO said Costa products will start rolling out in CCHBC markets during the second quarter. In October, the company withdrew from a partnership with Luigi Lavazza because of the Costa acquisition. CCHBC has a non-compete clause with the Italian coffee company that will not fully clear until May, Bogdanovic said. 

Meanwhile, CCHBC is working on consumption synergies between its beverage brands and new confectionery acquisition Bambi. CCHBC agreed to buy the Serbian company - which makes biscuits, wafers and savoury snacks - in February last year and for the past six months has been cross-promoting Bambi products with beverages.

"Cross-promotions and cross-merchandising are working really well in various occasions all the way from the morning occasions with AdeZ, our plant-based beverage, and then through snacking throughout the day," Bogdanovic said.

Forget the Cola Wars, here comes Coca-Cola and PepsiCo's Coffee Clash - Click here for a just-drinks comment


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