Coke Zero helps fuel parent's turnaround

by Nicola Clark, Marketing 01-Nov-06

Coca-Cola Enterprises has attributed a turnaround in its volume sales in Europe to a strong UK performance by Coke Zero.

The company posted volume growth of 5.5% in Europe in the third quarter,
as Coke Zero sold 4m cases in the UK. In contrast, it experienced a 1%
decline in volume sales of its carbonated soft drinks in the US.

In the 16 weeks since its launch, Coke Zero has achieved UK sales of

£24.1m, according to ACNielsen

'The success of Coke Zero's launch provides us with momentum to build on
across the Coke brands, and it has contributed to a turnaround in the
carbonated soft-drinks category, which is now in value growth,' said
Cathryn Sleight, marketing director at Coca-Cola Great Britain.

Between June and September Coca-Cola spent almost twice as much on
advertising Coke Zero as arch-rival Pepsi Max, according to Nielsen
Media Research. It outlayed a total of £4.5m in the period
compared with Pepsi Max's £2.29m.

Coke concentrated its spend on TV, with a £2.3m investment; it
also spent £1.8m on outdoor. Pepsi Max focused on outdoor, with a
£1m spend, allocating £600,000 to TV.

Insiders claim that both companies also significantly increased their
trade marketing activity to battle for shelf space in an increasingly
competitive market.

Analysts have criticised both Pepsi and Coca-Cola for their
over-reliance on price promotions to build volume sales.

Coca-Cola plans to launch Coke Zero in France and the Netherlands next
year.