1. www.agra-net.com VOLUME 39 No.40 7 OCTOBER, 2011
Coke plans to lead industry
in planting new citrus groves
BY NEIL MURRAY To ensure growth, Coke has focused on
sustainable sourcing, winning brand propo-
CITRUS disease and the failure of farmers sitions and efficient operating practices, he
to re-plant is regarded by Coca-Cola as the said. Expanding on that, as regards sourcing,
most significant threat to the future of the he commented: “We set out to establish and
juice industry. And the soft drinks giant in some cases re-establish partnerships with
has hinted that it is planning to do some- juice suppliers and to source it at competitive
thing about it. prices so we could continue to invest in the
Ian McLaughlin, general manager of market. In many cases we have had relation-
Coke’s Global Juice business unit, told dele- ships without key suppliers for decades, in
gates at this week’s World Juice 2011 confer- some cases for four decades, and the reality is
ence in Madrid: “Global warming is impact- that we see that as a key pillar of our strength.
ing on the raw material supply and in certain It is critically important that we have a strong
segments is threatening the future of the supply network from our growers and pro-
processing industry. In particular, the cessors.” To this end, Coke established a
increase in disease is a worrying one because dedicated sourcing team based in Zurich.
of the impact on trees and also because it is a Coke’s diversification into fruit juice has
barrier to growth. thrown up some interesting challenges. One
“We are all aware of the decline in the was the need to move from a formula-based
Florida citrus market but even the recent operating system (because Coke’s “DNA is
high prices of orange juice have not stimu- rooted in sparkling beverages”) to a recipe-
Ian McLaughlin at World Juice 2011
lated widespread re-planting. There has been based system. The next was to set up a
virtually no re-planting in Florida. What we stimulus to re-planting and we are not seeing stepped product portfolio, starting with
normally see is high prices for juice are a that. I would say greening is the greatest cheap powders and concentrates (still very
threat that we have and it is essential that we important in some markets), and moving up
continue to invest in prevention and cure. through mainstream fruit juices, and then
IN THIS ISSUE Not doing anything about it is not an issue.
We are working with the industry in order to
premium chilled juices, to the present pre-
mium pinnacle of smoothies.
make [re-planting] happens.”
• Coca-Cola plans major
His presentation, however, was generally Key brand platforms
investment in Russia .................. 4
upbeat and spotlighted the growth strategy Coke has organised about 1 000 products
• Suntory considers Russian that has enabled Coke to double its fruit juice into a few key platforms aligned under a
expansion .................................... 5 market share since 2000 and to record a 10% global master brand. “We believe it was the
compound annual growth rate (CAGR) since right decision to take,” said McLaughlin. “It
• Serbia set for bumper autumn
2005. Despite the general economic gloom has allowed us to retain equity and consumer
fruit crops .................................... 7
(especially in the Eurozone), he told dele- connection in many of the brands we have
• Cristal deal to create new gates that there was still room for growth. had for decades.”
force in sugar .............................. 7 “We strongly believe at Coke that this is the Coke now has three one-billion-dollar
right time to think about growth,” he said. juice brands: Simply Minute Maid in North
• MEYED calls for ‘World Fruit “We believe that we will get through this America, Minute Maid Pulpy in China and
Juice Day’................................... 10 particular crisis and return to growth and Del Valle in Latin America. Simply Minute
• Sharp rise in apple imports there are many opportunities to grow our Maid was launched in 2001, with strict con-
to Brazil ...................................... 12 business. sistency in positioning, and provided Coke
“We need a multi-year and multi-decade with valuable lessons as to how it might
• Spanish canned foods gain approach to planning the success of our busi- approach premium juice segments in other
from Euro crisis......................... 14 ness and that really is the approach we are markets around the world.
• Peruvian enjoys strong canned taking at Coca-Cola. We do not want to Minute Maid Pulpy (strictly speaking a
asparagus sales ........................ 15 waste this crisis. We want to use it as an juice drink) offers sensory experiences in
opportunity to focus and plan for our next sight, smell, sound, touch and taste. Since it
• Poland dominates frozen phase of growth. We have a very positive was launched, it “has taken China by storm
strawberry market ..................... 28 view of the future.” continued on page 8
Incorporating Eurofood, World Drinks, Chocolate & Confectionery International and Fruit and Vegetable Markets
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