ND1005116

Title: Coke Revamps Distribution, Product Placement

Description: The soft drink maker wants to reach consumers beyond the beverage aisle.

Page Content: HOUSTON ? Coca-Cola is beginning an expansion of its brands into the U.S. market to boost sales after acquiring the North American operations of Coke North America, the Atlanta Journal-Constitution reports. The soft drink manufacturer wants to use the deal to increase sales and streamline its operations by flooding the United States with its energy drinks, juices, soda and water brands.

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While Coke has had success in increasing its North American sales recently, business hasn?t always been good lately. Between government calls to tax soda and consumers chucking carbonated beverages for other drinks, Coke has been looking for ways to regain market share.

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Meanwhile, the acquisition has the company scrambling to integrate North American operations and focus on selling beverages. ?There were complications, there were duplications, there was time lost, there was red tape,? said Muhtar Kent, CEO of Coca-Cola Enterprises, after the merger.

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In Houston recently, Coke executives showed a group of customers, journalists and analysts to gasoline stations, grocery stores, university campuses and shopping centers to highlight the new direction of the company. Each location featured Coke products in high traffic areas supported by banners, outdoor placards and in-store displays, such as Dasani bottles next to bananas, Vitaminwater nestled next to organics, 3-liter Coke bottles held court by the tortillas.

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?Coke products have been sold in almost ever retailer in the country for a while,? said John Sicher, editor of Beverage Digest. ?They are trying to get them into more points of sale, to build auxiliary displays around the store.?

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By buying Coke North America, Coca-Cola Enterprises hopes to avoid frustrations form retailers who want to order all Coke products from one distributor. Afroz Painter, who owns 10 convenience stores in Atlanta, said the change has made deliveries more consistent. ?They are not out of products like they used to be,? he said. ?It wasn?t a big problem before, but it?s nice not to have it at all now.?

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Content Subject: Marketing/Merchandising

Formatted Article Date: October 5, 2011

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