The Coca-Cola Co launched premium mixers range Schweppes 1783 in the UK this year

The Coca-Cola Co launched premium mixers range Schweppes 1783 in the UK this year

The CEO of the Coca-Cola Co has identified premium adult soft drinks and mixers an an area for growth opportunity for the company. 

Speaking to analysts following the firm's Q3 & YTD results yesterday, James Quincey said consumers are looking for more discerning products. "More consumers, most notably adults, are seeking unique and distinct products with sophisticated flavours, quality ingredients and smaller-scale craft production," he said.

Quincey highlighted the launch in Spain of the Royal Bliss line of mixers, as well the the UK relaunch of Schweppes, along with new premium range Schweppes 1783.

The CEO also said the firm would use its Venture & Emerging Brands (VEB) incubator unit to nurture high-growth products. Earlier this month, Coca-Cola's VEB unit acquired Mexican mineral water Topo Chico.  

"Our VEB unit will serve as an incubator for Topo Chico and will guide the development of the brand's distribution footprint," Quincey said. "Within VEB, this approach has been highly successful for other investments, like Honest Tea, maintaining the essence of the brand and the entrepreneurial culture of the company while supporting its rapid growth phase within the power of the Coca-Cola system."

The company will look to nurture and expand other small brands internationally, using a similar model, Quincey said. 

"We've learned a lot from the VEB model in the US, and we're leveraging those lessons to develop similar structures and processes in other markets," he said. "For example, in Central and Eastern Europe, we recently launched a unit in partnership with our bottling partner, Coca-Cola Hellenic.

"We will seek emerging brands and potential partnerships, but we will start by testing premium brands in high-value outlets and channels through a separate and dedicated sales force. Many of these, like Smartwater, Zico and Appletiser, will be lifted and shifted from other places. Products will follow the incubate grow and scale path, with a goal to expand fast and discontinue quickly if necessary."

The Coca-Cola Co's Q3 2017 performance by region - results data

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