Daily Management Review

Will Coca-Cola create competitor for Starbucks?


At the beginning of the year, Coca-Cola completed acquisition of Costa Coffee for $ 5 billion. This British company is the second largest chain of coffee shops after Starbucks. Meanwhile, Coca-Cola CEO James Quincey is trying to increase the company's influence in the highly profitable coffee industry.

Mike Mozart
Mike Mozart
During a teleconference devoted to the company's financial activities in the first quarter, Quincey revealed some of the details of the company's plan to gain market share in the new industry. First, Coca-Cola will launch a production of a new coffee drink in another 25 countries. In addition, the company plans to begin producing ready-to-drink coffee products under the Costa brand, but it is not yet clear in which countries.

Quincey reported that new caffeine-rich drinks are created for people who want to “recharge” with energy in certain cases, for example, in the middle of the working day. If Coca-Cola really succeeds in adding coffee to the drink, preserving the signature taste and avoiding sugar, the new product will certainly become popular.

This is a really smart move. “Customers will have the opportunity to choose between traditional Coca-Cola and the same drink, but with caffeine. In addition, the company will be able to attract new customers who value the special qualities of coffee,” explains Quincey.

However, there are also disadvantages - people may start giving more preference to the coffee “cola”, while popularity of the company's traditional drink will start to decline.

Quincey does not hide the fact that he turned Coca-Cola into a company that exclusively engaged in the production of beverages. This includes not only new soda with coffee content, but also ready-to-drink Costa coffee products, as well as sports drinks.

Recall that about a year ago, Coca-Cola acquired a minority stake in the BodyArmor company, which produces drinks of the same name for athletes.

Such a desire to grow should encourage investors, especially in the lucrative coffee industry. On the other hand, it can become a serious concern for Starbucks, especially given the problems of the company with the reduction in the number of visitors to coffee shops in the afternoon. The more people will prefer the coffee "cola", the less will be the demand for Starbucks cold drinks.

source: news.yahoo.com

Science & Technology

UK trials new breathing aid developed by Mercedes Formula One

Uber sues Los Angeles authorities over user data collection

Google Introduces New Coronavirus Website

WHO Warns That The Youth Are ‘Not Invincible' To The Novel Coronavirus

Chinese software company learns to recognize 95% of masked faces

World's largest retailer to use 5G for medical services

SpaceX Receives Approval To Create Research & Manufacturing Facility In Los Angeles

JPMorgan: Transition to e-money will be based on blockchain

Tesla In Advance Talks With CATL For Using Lithium Batteries

Financial giants and US government turn to quantum computers

World Politics

World & Politics

Aerospace Consortium To Build Ten Thousand Ventilator In Britain

US Ambassador To UK Holds China Responsible For Global Spread Of Coronavirus

China to lift quarantine in Wuhan on April 8

Canada, Australia refuse to send athletes to Olympics 2020

Plans For A Possible Delay Of Olympics Being Formulated By Tokyo Organizers: Reuters

Maduro says Venezuela will receive UN assistance to fight coronavirus

2 Million Masks For Coronavirus Crisis In Europe Donated By Jack Ma

National Emergency Declared In The US By Donald Trump Over Coronavirus