Coca-Cola has closed its $5 billion acquisition against Costa Coffee- the second largest coffee brand next to Starbucks.
Coca-Cola CEO James Quincey is planning to enter into this largest global coffee industry. Well, on Tuesday, Quincey had conveyed to the analysts, about its decision to venture into the coffee industry, and also about its first-quarter earnings.
Firstly, this year, as an experiment, Coca-Cola has planned to release coffee-infused soda to 25 markets around the world.
In the year 2018, in the region of Southeast Asia, the company have had given a debut of Coke “Plus Cafe Expresso”. As per a spokesperson from Coca-Cola, the company currently has no plans of debuting the product of coffee in the U.S.
Coke might launch a new product of ready-to-drink coffee under the Costa brand, as per the report. Quincey once said that people would try this new product, where soda and coffee would go hand in hand.
“Quincey detailedly explained saying Coke and a coffee variant of Coca-Cola is really at that juncture- where people look in for the benefits associated in Coke versus their choice of coffee, especially in some of the markets where the occasions are less developed,”.
He feels glad that this product would be totally new in the world market and this will rise up their level in the market.
“Now things like coffee, that’s at the beginning, we’ll see how that develops,” said Quincey. “Well, that’s a product variant that’s venturing into another category with coffee. Definitely, there is a threat attached as you say that it becomes — it starts to change the nature of Coke itself.”