In its Q3 2018 trading update this morning, Coca-Cola Hellenic reported a ‘successful quarter’ for sparkling beverages, which grew by 4.7% despite a strong prior-year period with 2.7% volume growth, with good performances across all its markets except Italy, Nigeria and Switzerland.
No and low calorie sparkling variants grew by 25.9% in the quarter, much faster than full sugar variants, which grew 2.1%.
The shift towards lower calorie products is driven by consumer demand, while in Ireland the new sugar tax is also having an effect.
“The shifting consumer preferences towards low-calorie products is particularly evident in Austria, with all of the growth in the Sparkling category driven by Coca-Cola Zero, Fanta Zero and the newly launched Sprite Zero,” observes Coca-Cola Hellenic.
Although the overall sparkling category in Italy declined, zero-calorie variants such as Coca-Cola Zero, Coca-Cola without calories and with Stevia (similar to Coca-Cola Life in other markets) and Fanta Zero all grew.
In Greece, 'positive performance' for sparkling was driven by sugar-free Coca-Cola Zero, zero-calorie Fanta and Sprite variants and by flavour innovations such as Mastic mint and Lemon in Schweppes.
The UK and Ireland both introduced sugar taxes on sugar-sweetened beverages earlier this year, and Coca-Cola Hellenic says the impact has been a shift towards low and no sugar variants.
“Northern Ireland and Republic of Ireland implemented a sugar tax on soft drinks in the second quarter of the year. So far, the reaction from our customers and consumers has been in line with our expectations, with a shift in volume from full-sugar to low- and no-sugar variants.”
Great Britain has seen a similar shift, with Coca-Cola Classic volumes declining but Zero Sugar volumes up 50%.
Coca-Cola Hellenic Q3
Releasing its Q3 trading update this morning, Coca-Cola Hellenic Bottling Company reported net sales revenue growth of 4.5% on a currency-neutral basis and 2.6% on a reported basis compared to the prior-year quarter. Volumes increased 4.2% in the quarter, with strong performances in the developing markets and the emerging markets.