Coca-Cola’s big push on its Diet Coke variant has been an initial success, with value sales of the lower-sugar variant overtaking classic Coke just weeks after the sugar tax came into effect. The tax meant the cost of a 300ml can of Coca-Cola increased by 8p, and the rise has led to volume sales falling from 9 million litres per week at the end of February to a low of 6.7 million litres for the week ending 14 April, according to figures from IRI.
However, Coca-Cola‘s decision not to reduce the sugar in classic Coke and instead focus on its Diet and Zero variants appears to have paid off. While volume sales of classic Coke decreased, value sales have slowly increased as the rise in cost offset the decline in the amount of Coke people bought. And at the same time both volume and value sales of Diet Coke have increased, helped by a product relaunch and £10m marketing campaign.
The figures show Coca-Cola’s initial move to offset the impacts of the sugar tax have paid off. But the company faces a mounting challenge as consumers move away from fizzy drinks to healthier alternatives, and choice increases as products such as flavoured waters and teas become increasingly popular. Navigating those shifts will be key for Coca-Cola going forward.
Compare the Market looks for loyalty in a promiscuous market
It might seem ironic that Compare the Market, a price comparison site that actively encourages people to shop around to get the best deal on services ranging from gas suppliers to home insurance, is worried about loyalty. But in a hugely competitive market where shouting the loudest is often the key to success, the company knows it needs to do more.
Recognising this, three years ago Compare the Market took over Odeon’s two-for-one offer on cinema tickets on Wednesdays from Orange, rebranding it as Meerkat Movies. And now it is making a further move, partnering with Tastecard to launch Meerkat Meals, which offers customers two-for-one meals at a whole host of restaurants across the UK.
The hope, of course, is that when people come to renew financial products they will use Compare the Market to compare prices, rather than one of its rivals, and keep coming back year after year. Yet as the brand knows only too well, when the focus has been put on price it is hard to shift the conversation to other areas of service.
TfL wants brands to better reflect women in advertising
In a drive to make advertising on the capital’s transport network better reflect the people that use it, Transport for London…