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Coca-Cola is a company that thrives on innovation, constantly experimenting with new flavors and experiences for its loyal customers.
Now, the company wants to innovate again with a new look for its drinks.
Coca-Cola plans to diversify its cans, bottles and value packs.
The beverage company will also offer customers more options, even if they pay more for less.
James Quincey, the company CEO, shared the idea during an analyst call about third-quarter results on Tuesday.
“Package innovation takes a bigger role,” said Quincey.
“We will be approaching ’23 with a broad innovation agenda, but with some slight weighting to packaging.”
A company with Coca-Cola status offers different containers to attract customers concerned about their spending.
There is still demand for Coke products, even though prices are rising.
“It’s about extending the price ladder,” Quincey explained.
“Making sure the entry point… becomes as low down in the price spectrum, the actual out-of-pocket, as possible.”
The extension is needed with Coca-Cola seeing consumers limit spending amid rising prices.
Shoppers are careful now, spending less on groceries.
“Therefore, the price point becomes even more important than the price per litter,” Quincey added.
“That’s absolutely what we’re pursuing.”
Consumers may pay more per liter when they buy smaller packages, but others are willing to negotiate lower prices.
Their decision comes from the fact that they cannot afford expensive items.
Containers and packs
Coca-Cola sells smaller containers and multi-packs that have fewer cans.
However, the company started a value collection in the third quarter, which allowed customers to obtain products of different sizes.
The items are only available in the United States in select stores.
According to Quincey, they help retain and attract more customers while creating value for Coca-Cola customers.
James Quincey also points out that reusable containers are an affordable alternative.
Consumers can get their money back by returning bottles and cans.
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Coca-Cola’s goals and strategies
The company said earlier this year that it will aim to sell a quarter of all of its drinks worldwide.
They plan to reach the goal by 2030 using reusable or reusable containers.
Coca-Cola also announced that it will change the design of the Sprite bottle.
The company is replacing the iconic green look with clear plastic, making recycling easier.
Its strategies can offset high prices.
The company believes that inflation and volatility in the commodity market will affect costs and continue to increase prices.
“There’s going to be above normal input costs,” said Quincey.
“So we are expecting pricing to be ahead of normal next year on top of what’s happened this year.”
Coca-Cola expects further changes in the future.
During the analyst’s call, James Quincey said they would add more premium options for those with disposable income.
The company also plans to continue promoting Coke Zero Sugar with improved marketing and other innovations.
Coca-Cola’s pricing and innovation strategy continues to work as net revenues increased 10% to $1.1 billion in the third quarter.