is coke, but it is coke.
It is said that Coca Cola is a model worker of “pushing the New Territories”. Take 2019 as an example, it even launched 12 new products in this year.
Even during the epidemic period, Coca Cola’s pace of promoting new products is still not stopped, and even more heroic. In the third quarter of last year alone, it launched 10 new products.
It is reported that Coca Cola has more than 4300 kinds of products, with a wide range of categories and a wide range of products.
However, there are many new products and few successful ones. Last year alone, it cut 600 “zombie” products.
However, Coca Cola has always been more frustrated and more brave. Recently, it launched a new one. This time, it even sold “happy wine”!
Low sugar, zero fat, “happy wine” is coming!
On June 1, Coca Cola China announced on its microblog that it would launch its first alcoholic drink, TOPO Chico hard seltzer, in the Chinese market.
Topo Chico, which originated in Mexico, was born in 1895 and has a history of 125 years. It is a business acquired by Coca Cola in 2017.
Topo Chico is a mixture of soda bubble water and wine. It has a steamy taste. Its alcohol content is about 5 degrees. It often adds fruit or sweetness. It tastes good. It is regarded as a “light food” in the wine industry. It is an innovative product launched by Coca Cola only last year. It has been launched in Latin America and Europe for a long time.
It is reported that it is based on gluten free alcohol and blended with soda bubble water. It has the characteristics of low alcohol content (4.7% vol), low sugar, 0 fat, only 29 calories per 100 ml, and natural fruit flavor.
According to the industry, drinks with alcohol content of 0.5% – 7% vol can generally be called low alcohol alcohol or low alcohol drinks.
Therefore, its audience is young people aged 20-35, especially some young women and young people without drinking habits.
At the same time, the product launched three flavors in the Chinese market: lemon and lime flavor, strawberry and guava flavor and colorful pineapple flavor. The retail price is about 10 yuan / can. The new product was officially put on sale in Coca Cola tmall flagship store on the same day, and will be launched into more e-commerce and new retail channels one after another.
In short, Coca Cola TOPO Chico soda sparkling wine is an entry-level product aimed at young consumers’ alcohol consumption, and it is a healthy track with low sugar and zero fat.
Why is Coca Cola selling wine in China at this time?
As an alcoholic beverage that has won favor in Latin American and European markets, what are the reasons for TOPO Chico’s entry into the domestic market?
Firstly, it is the change of domestic consumption demand, which is shown in three aspects
First, consumers’ demand for the product itself is changing from single to compound. For example, in the past, people asked for delicious food, but now they ask for delicious, healthy and good-looking food.
Second, the focus of consumers’ compound demand is also shifting. For drinks, in the past, good drink ranked first, so fat house happy water is really happy. Now health ranks first. The top Chico hard soda sparkling wine focuses on health demand.
Third, more demand scenarios of vertical segmentation continue to appear, and more invisible needs of consumers are discovered. When it comes to alcohol consumption, alcohol is no longer just a traditional banquet. Afternoon tea, drinking before going to bed, light social interaction and other scenes are OK.
Coca Cola’s entry into China’s alcohol consumer category is a response to the changes in domestic consumer demand. In addition, Latin American and European markets have verified the feasibility of this product. In China’s market, hard soda sparkling wine is still in an emerging stage, with unlimited market potential.
According to the analysis of market prospect and current situation of low alcohol liquor industry in 2020 released by Academia Sinica, the consumption amount of low alcohol liquor market in China has increased by more than 50% in the past two years, and the growth rate of low alcohol liquor once exceeded 80% in 618 of last year.
Secondly, Coca Cola emphasizes to promote the strategy of “all kinds of drinks” in an all-round way.
No matter how delicious a drink is, it’s easy to get bored when you drink too much. The proportion of Coca Cola’s whole category can occupy all aspects of consumers’ life scenes, and the brand-new category can stimulate people’s curiosity. If the positioning and taste of new products are ideal, it can also more effectively stimulate sales.
Earlier, Coca Cola launched diet coke and zero degree Coke without sugar, reduced the sugar content of classic Coca Cola, and introduced corresponding small canned drinks, which directly brought more than 3% growth for them. Coca Cola with Zero sugar has achieved double-digit growth for seven consecutive quarters.
Fierce competition, product homogeneity,
Can Coca Cola’s new products stand out?
So, after Coca Cola’s high-profile official promotion and actual sales, can this new product sell well?
We all know that if a new product wants to sell well, first, it depends on whether the product itself can eliminate the three obstacles of strangeness, risk and ambiguity; Second, in addition to looking at products, homogenization is inevitable.
From the product point of view, Coca Cola TOPO Chico hard soda sparkling wine can literally tell consumers that the product is a mixture of sparkling water and wine. Consumers can see what the product is and what it contains at a glance, thus eliminating the ambiguity of the new product’s “unknown” and “what effect it has”.
At the same time, TOPO Chico is aimed at the needs of domestic consumers of low alcohol drinks, and it also focuses on the core factors of health. In terms of category, it is a field that young consumers are more and more familiar with, which can break the strangeness of consumers to a certain extent;
Moreover, the product also has the blessing of Coca Cola brand, which can use the “authority” to urge the public to “go with the flow” — drink a cup first, and the subsequent story is based on the quality, thus reducing the sense of risk.
However, no matter how good the products and brands of Topo Chico’s hard soda sparkling wine are, it is not enough for it to make unremitting progress in the Chinese market. You know, although hard soda sparkling wine is still in an emerging stage in the domestic market, there are many giants.
Because of the hard soda bubble wine, in recent years, it has successfully caused the competition between the wine industry and the beverage industry.
Let’s look at the industry first. Abroad, Budweiser, the global beer magnate, has long begun to lay out its low spirit bubble water business. For example, in August 2019, Budweiser launched the natural light seltzer, which contains 6% alcohol in each can; In 2020, Budweiser will launch a brand new low alcohol essence bubble water brand Bud Light seltzer. The alcohol content of 12fl.oz can be 5% vol, with 100 calories, less than 1G sugar and 2G carbon water.
However, in China, there was chili light brewed by panda earlier, which is the first hard soda beverage in China. The alcohol content of each can is 3.3% vol, and one can has 62 calories.
In the eyes of many people, the word “slightly drunk” stands for it. It’s too early for Coca Cola to break this consumer psychology. Moreover, Ruiao also announced on June 1 that it will update the “qiangshuang” series and launch the “0 sugar” product for the first time, which is quite a challenge to Coca Cola.
Moreover, outside the industry, new tea brands such as Xi Cha and Naixue have already entered the market.
Compared with the products of these brands, Coca Cola’s new products do not seem to be irreplaceable, and do not seem to have much advantage.
In a word, although this new cola can make consumers refreshing, under the background of fierce competition and too serious homogenization, its final sales growth should also be very limited.
Behind the strong push for new products,
Is “fat house happy water” not fragrant?
In 2020, carbonated drinks have become the largest soft drink market segment in the world, accounting for 35.2% of the market share, far higher than that of ready to drink tea, energy drinks, ready to drink coffee, sports drinks and other segments.
And Coca Cola is the overlord in the overlord, its market share is another giant Pepsi can not catch up with.
But in recent years, the market share of feizhai happy water has been shrinking. You know, the market share of carbonated drinks in 2016 was 36.9%. However, other drinks, especially packaged drinking water and energy drinks, are favored by the market, but their market share is rising.
All this is due to the upgrading of consumption, and consumers are paying more and more attention to health.
We can feel this change around us, such as “health” and “sugar” topics, more and more people’s attention.
In other words, it is an indisputable fact that the “fat house happy water” is no longer fragrant.
So, how does Coca Cola want to ensure growth?
This is back to our theme, expanding new categories and promoting the whole category strategy.
From the development of Coca Cola in recent years, it has already started the whole category layout. For example, apart from the earlier acquisition of Fenda and Sprite, there are also the recently acquired well-known Costa coffee, as well as the now launched low-alcoholic drinks. Through continuous acquisition, reorganization and innovation, Coca Cola expands its brand boundary, Occupy every scene of consumers’ daily life.
However, some people feel sad that although Coca Cola has launched numerous new products, it is basically unknown. This is because Coca Cola is the name that consumers will think of when they mention “coke” – thanks to this in the past, the halo effect of Coca Cola makes it different from other Cola brands.
But the consumer market is changing, too deep binding relationship, also led to Coca Cola new categories can not stand out.
It can be said that success is also “coke”, failure is also “coke”.
For the younger generation of consumers, the attraction of traditional brands is declining, while new brands are more and more able to catch the hearts of young consumers because they are good at hitting the pain point.
But this doesn’t mean that traditional brands don’t have the slightest chance. “Zhang Ximeng, the author of the book” chief growth officer “, said:” the market has shifted from the seller’s market to the buyer’s market. Now the market is user-centered, experience oriented, and needs more customer loyalty. “
That is to say, with the user as the center, traditional brands can continuously dig deep into the needs of consumers, find their more hidden pain points, and thus spawn new functions. With the help of crowd stratification and broader commodity price band, they can also bring opportunities for the expansion of more new categories.
No matter what the final result is, Coca Cola still has the ambition to continue its legend, which is enough for us to admire.
Author: ye Zidong; Source: top brand (ID: brand180), reprint has been authorized. Joining the community: Cherry (wechat: 15240428449); Business cooperation: Amy (wechat: 13701559246). Recommended reading “five questions” of hyaluronic acid | 2021 next innovation award | Sugar crisis | 100 billion light food| 2021 the most innovative company in the world | | | | | Collagen Peptide | Daily new walnut stew: Isee trend | Editor’s | Reader’s
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Finally, Coca Cola has another big move!