Coca-Cola’s biggest Problem is not Red Bull, but an old contract clause

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There is a new addition to the already jam-Packed drinks shelf: a few days ago, Coca-Colas own Energy Drink available in Germany. With the simple baptized “Coca Cola Energy” and a sugar-free Alternative, the group wants to hunt space deer Red Bull market share.

the most Important distinguishing feature: Coca-Cola, dispensed in his Wake-up completely to taurine, and instead it uses Guarana as a caffeine supplier. The industry portal “horizon”, according to Coca-Cola accompanied the launch with a seven-million-Euro advertising campaign.

Makes a Monster a dash through the bill?

But while the psych of advertising precious tinged, Japanese-Clips to ensure a good mood, fly behind the Scenes, apparently, even the scraps. However, it is not the largest competitor in Austria is making Trouble, but another Energy Drink called Monster: 2015 secured Coca-Cola for 2.15 billion, a total of 16.7 percent of the shares and of the global distribution rights of Monster Drinks.

However, a clause, according to the Coca-Cola was prohibited to be in the Segment of Energy Drinks active in the contract. The said Monster CEO Rodney Sacks already last November, told the Reuters news Agency. However, some exceptions would apply. Since then, the lawyers are debating whether the new Guarana-case of Drink under one of these exceptions, or if the market start is illegal.

compared To the “Tagesspiegel” commented Coca-Cola is now the case. “During the arbitration, the introduction of Coca-Cola’s Energy goes forward”, informs the group of the Berliner Tageszeitung. You have communicated this step, both monsters as well as the court of arbitration.

Energy Drinks grow and grow,

Monster expected in the next few weeks a decision in the matter. The company should get the right calls for you, Coca-Cola’s Energy is withdrawn from the market. However, it may be doubted, in view of the costly market introduction, that Coca-Cola is so quickly defeated.

Because Energy Drinks are one of the fastest growing segments in the beverage shelf. In Germany, the wax-maker-crack the sales-billion brand drinks in the meantime. The Segment with Cola-drinks, shrinks, however, for years.

in 2006, Coca-Cola took the attempt to gain a foothold in the Energy market. At the time, the drinks giant launched the brand’s Relentless, despite a large marketing effort, but had no Chance against Red Bull and Rockstar.

Coca-Cola needs a success

For Coca-Cola is no longer enough it for a long time, sell coke, Fanta and Sprite. The group is forced to move: in just the first seven months of 2018 in Germany 16 new products to the market. For comparison: in 2017, there were six, 2016 nine new Drinks.

The new drinks are aimed mainly at health-conscious Millennials, which put the sugar beverage industry under massive pressure. Among the best-known new brands for the group name like Fuze Tea, and Honest Tea. The group wants to reinvent themselves, and what problems he must solve, you can find here: A giant falters – visit to the innovation lab of Coca-Cola.

the report of the week

a visit to the innovation lab

A giant shake – wants to invent Coca-Cola’s new

The profit is declining, the dominance of the big Mainstream brands crumbles: For Coca-Cola is no longer enough it for a long time, sell coke, Fanta and Sprite. The group is in the process of change. How the new strategy should look like, has been the star in the case of a local visit.

By Denise Snieguole Wachter cf

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