However, affected by the epidemic situation, COFCO Coca Cola still handed over a “report card” of adverse growth!
China food, a major shareholder of COFCO Coca Cola, reported revenue of 9.401 billion yuan in the first half of the year, while profits rose 4.58% to 560 million yuan. As COFCO’s only specialized beverage platform, China food’s revenue is basically from COFCO Coca Cola, a joint venture company with 65% shares.
Xiaoshidai noted that Qing Lijun, the newly appointed managing director of China food, once said in a circular that COFCO Coca Cola has accelerated the transformation and upgrading of digital marketing around the annual work theme of high quality, internationalization and risk prevention, and timely adjusted its production and marketing strategies in view of the epidemic situation for the change of consumption trend.
Create a new product of ten million levels
During the period, COFCO and Coca Cola did not stop their steps towards the whole category of beverage. The snack generation learned that COFCO Coca Cola launched 21 new products in the first half of the year, mainly including juice, instant tea, instant coffee and so on.
Among them, many new products have come to the forefront of popular beverage. For example, in the context of the outbreak of sugar free drinks, COFCO Coca Cola has launched two new pure yueshui products and Yiquan peach flavored soda water, both of which focus on Zero sugar and zero energy.
According to the data of the China Business Industry Research Institute, under the trend of health, 80% of Chinese consumers will pay attention to the ingredients of food and beverage, especially the proportion of sugar in drinks. As of July, COFCO Coca Cola’s sugar free revenue increased by 46%.
The snack generation learned that under the explosive thinking, COFCO Coca Cola has cultivated five “ten million level” new online red products in the first half of the year.
Among the popular new products, “meizhiyuan juice peach” with the highest sales volume will have a sales revenue of more than 10 million yuan in the next month after its listing. Other new products that sell well include sunshine lemon tea / chrysanthemum tea, eye-catching litchi flavored soda, Costa ready to drink coffee and pure fruit flavored water.
This means that the product innovation to seize the consumer demand has become an important way for COFCO Coca Cola and even Coca Cola system to promote endogenous growth.
It is not difficult to see that these new products are based on existing products and brands after locking in new consumption trends. Compared with the launch of new brands, this operation can make use of the market resources of the original products and brands to help new products better open the market.
COFCO Coca Cola said in the financial report that it will continue to promote the whole category beverage strategy in the second half of the year. While actively maintaining the advantages of core categories, COFCO Coca Cola will continue to increase the promotion of new products and the packaging upgrading of existing categories.
under the epidemic situation
On a global scale, the Chinese market is undoubtedly one of the highlights of Coca Cola in the first half of the year. COFCO, as a bottler of Coca Cola, which covers more than half of the population in mainland China, has also played a “combination fist” to slow down the impact of the epidemic.
First of all, ensure “continuous supply” on the premise of ensuring the safety of employees and production. The snack agent learned that all 19 bottling plants under COFCO Coca Cola will resume work on February 18 to ensure the stable supply of products from all channels and markets.
After solving the problem of “you can sell”, we must also ensure that consumers can “buy”. In the early stage of the epidemic, COFCO Coca Cola launched the “community partner” project relying on the format of convenience stores. It operated by using the community property group, community group and community store group to respond to the drinking water demand of community residents in a timely manner. So far, COFCO Coca Cola has nearly 5000 “community partners”.
In addition, under the situation that the number of stranded people in villages and towns increased due to the epidemic situation, COFCO Coca Cola quickly understood the opportunities, relying on the sinking ability of channels, and accelerated the service network coverage of township channels. As of July, township sales have increased by 10%, creating a new growth pole for overall revenue.
In the context of the outbreak of the “housing economy” accelerated by the epidemic, COFCO Coca Cola has also vigorously increased o2o and e-commerce channels to meet the consumption demand of home scene.
In the o2o channel, COFCO Coca Cola has expanded its “home business” through multiple o2o platforms such as Nemo and meituan, and realized visual expansion with the help of big data such as the number of stores and the on shelf rate. After accelerated expansion in the first half of the year, it has covered 15000 modern channel stores in its sales area.
In terms of e-commerce channels, COFCO Coca Cola has not only opened its official flagship store on COFCO i-buy.com, but also developed in-depth cooperation with Jingdong and tmall. Xiaoshidai learned that through cooperation with Jingdong supermarket’s “natural selection” project, COFCO Coca Cola can realize the whole process of “placing orders from community residents to delivering them home within 3 hours” in some cities.
In addition, COFCO Coca Cola launched its first self operated wechat app mall “happy club” in June. According to COFCO Coca Cola, its e-commerce revenue grew by more than 35% in the first half of the year. During the 618 period, qinglijun personally went to the battle to bring goods, and accurately reached consumers through live e-commerce. As of July, COFCO and Coca Cola had accumulated 153 live broadcasts, with more than 106 million people watching.
From live delivery with goods to online flash, from increasing meituan and hungry Mo cooperation to United meicai.com, Jingdong and taoxianda, COFCO Coca Cola in the first half of the year can be described as “high-frequency touch the Internet”, accelerating the transformation and upgrading of digital marketing. It is worth noting that accelerating the transformation of digital marketing is an important task proposed by Qing Lijun at the beginning of his new term, which also makes COFCO coca cola one of the biggest beneficiaries of digital marketing during the epidemic period.
Looking forward to the performance of COFCO Coca Cola in the second half of the year, CICC pointed out in its research report in July that the current channel inventory level of COFCO Coca Cola is healthy, and it is expected that the company’s revenue of various categories is expected to continue the recovery trend in May and June in the second half of the year. In the context of normalization of the epidemic situation, CICC expects that COFCO Coca Cola’s revenue is expected to increase in the second half of this year.