5Alive Strong Growth helps Coca-Cola Performance in Nigeria
Coca Cola has applauded the success of the Pulpy extension of its 5Alive juice which was introduced into the Nigerian market in September 2015. CEO of Coca-Cola HBC Dimitris Lois noted that the brand has seen growth of 45 percent in the country.
The drink which is the first-of-its-kind in the fruit drinks segment of the Nigerian market was received with some pessimism by analysts when it was launched, but with aggressive marketing and promotion which is the international identity of Coca-Cola, the brand quickly gained impressive brand awareness and market share.
Dimitris made the revelation at a recent chat with analysts following the company’s first-quarter trading update, where he disclosed the beverage company’s plans to launch Coca-Cola’s Monster energy brand into Nigeria during the second half of the year.Coca-Cola bought 16.75% stake in Monster Beverage Corporation valued at $2.15bn in August 2014.
While other drinks companies are finding the current macro-economic environment in Nigeria challenging, CCHBC extolled the country’s “strong performance” for the eight consecutive quarters, adding that the company expects mid-single digit growth, “potentially going to high-single digit” for 2016.
“We are excited… with the energy category,” said Lois. “We don’t have something right now in Nigeria.” He noted that Nigeria has proved a challenging market for many drinks companies amid currency turmoil. However, CCHBC hailed the country’s “strong performance” for the eighth consecutive quarter.
“Obviously it is a very challenging external environment, taking into consideration the FX overall situation,” said Lois. “We are very strong in Nigeria. We continue to see Nigeria as a key growth driver.”
He said the company expects mid-single digit growth, “potentially going to high-single digit” for 2016. Giving more colour, he said sparkling PETs were driving overall volumes growth, along with 50cl returnable glass bottles. The company is also set to introduce additional packages to the market, including a 60cl PET format.
“We are [also] very happy to see a high single-digit growth in water. So, all cylinders are firing,” he added.
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