With the history of more than a century, Coca-Cola, the world’s largest producer of carbonated beverages, decided in principle to enter the market of low-alcohol beverages. The solution adopted is considered rather revolutionary.
The American concern decided to compete for a share in the Japanese market of low-alcohol beverages. These drinks are called Zhuhai. Such local brands as Strong Zero, Highball Lemon and Slat are setting the tone for this market. In fact, they are low-alcohol cocktails, often carbonated, with an alcohol content of 3 to 8%.
The market of Zhuhai is huge, so the American company’s revolutionary step has every chance of becoming successful.
Representatives of the concern have prepared the market for such a decision. Even at the end of last year, analysts noted that Coca-Cola was considering the possibility of alcohol-containing beverages to enter the market. In a meeting with his investors, James Quincey, Chief Executive Officer of The Coca-Cola Company, confirmed the probability of that step in November last year.
At the moment, it is possible to speak with confidence about the preparation of new products, since the interview with Jorge Garduño, President of the Japan Business Unit of The Coca-Cola Company, has been published on the official website of the company.
Mr. Garduño said that Coca-Cola’s plan to enter the Zhuhai market was an example of how the corporation was looking for opportunities to develop beyond the field of the core business.
At the moment, this segment of the market in Japan is the most dynamic; from 2013 an annual growth has increased from 5 to 25%.
The concern’s decision to get out of the comfort zone is likely to positively affect the dynamics of the American company’s shares.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade