If it had not been acquired by Coca Cola, Costa would not have so many “new ways to play” in the Chinese market.
After the introduction of ready to drink coffee this year, Costa (Chinese Name: Costa) and COFCO Coca Cola have expanded their strategic cooperation to the field of self-service coffee machines. And Nestle StarBus.
COFCO Coca Cola is one of the two largest bottling companies of Coca Cola company in China. Its business area covers 19 markets in China, 81% of the land area and 51% of the population.
At the strategic signing ceremony held yesterday, the two sides said that they would jointly promote the distribution of Costa coffee · express election (hereinafter referred to as “Costa express election”) in various channels in China in the future. Costa express entered the Chinese market in August last year. The project has two types of machines: desktop coffee machine and self-service coffee machine.
Costa coffee – quick selection: self service coffee machine on the left and desktop coffee machine on the right
Xiaoshidai learned exclusively today that the above cooperation covers the business areas of COFCO Coca Cola. In addition, it is certain that the latter is another bottling company that shares the two sides of the world with COFCO Coca Cola. The self-service coffee machine will have the opportunity to quickly realize the full coverage of the mainland.
COFCO’s 19 markets include Beijing, Tianjin, Hebei, Shandong, Heilongjiang, Jilin, Liaoning, Shanxi, Shaanxi, Sichuan, Chongqing, Inner Mongolia, Gansu, Ningxia, Qinghai, Tibet, Xinjiang, Hunan and Guizhou
Not long ago, Costa said to the snack generation that it wanted to be an “Omni channel coffee brand” in China. In short, it is not only to be a coffee shop, but also to expand the coffee consumption scene outside the store.
This cooperation with COFCO Coca Cola is the latest landing of the above strategy. Today, Costa China told the food agency that COFCO Coca Cola would help Costa express expand its channels of non-traditional coffee shops, focusing on scenes such as offices and hotels, and the two sides would “cooperate closely for a long time”.
“We have a strategic cooperative relationship, and each of us will give full play to its advantages.” Costa China said that in terms of expanding the division of labor of Costa express selection, Costa is responsible for the development and innovation of brands and products, while COFCO Coca Cola is responsible for the management and expansion of customers and channels.
Qing Lijun, Secretary of the CPC Committee and CEO of COFCO Coca Cola (left) and Zhou Liewen, general manager of Costa Costa China (right)
The snack agent learned that at present, the drinks provided by Costa express include common coffee drinks such as American style, latte and cappuccino. “Pricing and positioning are different from Costa coffee stores.” Costa China said it would “provide different solutions according to the needs of customer scenarios, (customers) can choose desktop and self-service coffee machines”.
In Costa’s view, the need to accelerate the layout of Costa express is that the demand for instant consumption of coffee is growing.
“Consumers have a fast pace of life, and their demand for on the go is increasing. They need convenient, fast and high-quality freshly ground coffee.” Costa China told the food agency that it would focus on retail stores and provide “diversified instant coffee solutions”.
Talking about the cooperation, Qing Lijun, Secretary of the CPC Committee and CEO of COFCO Coca Cola, said at the signing ceremony yesterday that this “will provide COFCO Coca Cola with a more comprehensive beverage solution and help us better complete the expansion of coffee categories.”
Zhou Liewen, general manager of Costa Costa Costa China, said that he hoped to complete the rapid expansion of Costa’s fast election with the help of the strategic cooperation with COFCO Coca Cola. “China is one of Costa Costa’s most important international markets, and we hope to continuously tap the huge potential of the Chinese coffee market.”.
Since its acquisition by Coca Cola, Costa has a “new way to play” in the Chinese market. Through the online self-service coffee machine, ready to drink coffee and capsule coffee, Costa China has expanded its consumption scenarios from coffee shops to unmanned retail and home coffee consumption.
In this process, Coca Cola bottling system plays an important role. As introduced by the snack agent, James quinkey, CEO of Coca Cola, revealed at the third quarter performance meeting last year that Costa coffee business is establishing partnership with bottling companies and cooperating with customers to explore how to drive growth through a complete set of coffee platforms.
James quinkey, CEO of Coca Cola
From now on, the first step for “borrowing” bottling companies is to develop beverage business: for example, cooperation between Costa and COFCO Coca Cola on ready to drink coffee.
According to Costa, after the first ready to drink coffee series was launched in China in March this year, the product took advantage of COFCO Coca Cola’s resources and layout in stores, supermarkets, community convenience stores, unmanned convenience stores and intelligent vending machines.
Today, the snack food agency further learned from Costa China that its ready to drink products have entered more than 100000 retail outlets across the country, “focusing on convenience stores, reaching the core consumer groups through smart retail, live delivery, scene free drinks, etc., through stores / supermarkets and e-commerce channels.”. In the coming winter of this year, Costa will also promote hot instant coffee in stores, supermarkets and other channels.
Costa China also said that in addition to Costa express, it will continue to cooperate with COFCO Coca Cola in coffee categories such as ready to drink coffee. In response to whether or not to consider cooperation with COFCO to expand stores, the company said “not for the time being.”.
“In the future, the strategic cooperation between the two sides will be further upgraded.” Costa announced that in addition to continuously promoting the distribution of Costa express selection in all channels across the country, the two sides will also improve the industrial layout, play a synergistic effect, and continue to look for growth points in the coffee market.
The battle for self-help
Back to the cafeteria. Although it is backed by partners with a background of central enterprises, it is not easy for Costa to seize a place in China’s self-service coffee machine market, especially in offices and hotels.
For example, Nestle, the world’s largest food company, and Starbucks, the world’s largest coffee chain, have formed a “coffee alliance” in China. Snack generation,
At Nestle’s 2019 investor conference, the company outlined five new strategies for its coffee business, including “accelerating the development of outdoor coffee consumption.”. Specifically, Nestle should focus on the office and travel (such as hotels) in these two major consumption scenarios.
At that time, David Rennie, global head of Nestle’s beverage strategic business, once said that in the coffee market, outdoor sales accounted for 70%. Office and travel channels account for 70% of outdoor coffee consumption.
In the Chinese market, Nestle’s new coffee strategy is continuously advancing.
Last year, nestle professional catering will also include the “Starbucks coffee service” coffee service solution of self cafe, which introduces the whole country coffee solution to China’s mainland, and focuses on high-end hotels and offices. Previously, Nestle has also launched the “Nestle office cafe” project and Nestle coffee extract grinding solution in the Chinese market.
During an exchange with Tang Daifeng, national sales manager of professional catering and beverage solutions in Nestle Greater China last week, the snack agent learned that “Starbucks coffee service” has now entered 10 cities, and its growth this year has exceeded expectations, and it will be expanded in succession.
It is worth noting that due to the epidemic situation, many outdoor consumption is limited, so the main battlefield of self-service coffee machine may be further concentrated in the office scene.
In April this year, Jinuo intelligent pointed out in the big data report on the operation of self-service coffee machines in 2019 that, affected by the black swan epidemic, the passenger flow of most public commercial scenes such as business districts and hotels is limited, and most colleges and universities have not yet opened school, which has affected the sales of self-service coffee machines.
The report believes that in this case, the office will become the largest potential market for self-service coffee machines, attracting operators to transfer more energy to this scenario.
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