Coca-Cola has announced that it is changing the packaging of all its flavors that include the original Diet Coke, Coke Zero, Coca-Cola Cherry, Coca-Cola Vanilla and the recently launched Coke Life. The packaging will look the same but in different colors.
In a press release, Coke said that the packaging transformation is aimed at a “one-brand” strategy across Great Britain, Ireland, France, Belgium, the Nordics, Holland and Spain. Coke thinks that its brand extensions have become rather confusing. Each can or bottle will include a more unique description of its contents on the front side. For example, Coke Zero will display that it has zero calories and zero sugar content. On the other hand, the original Coke will not be including its ingredients on the front. It will simply display “since 1886”.
What is the idea behind this packaging transformation?
Coke wants its consumers to fully understand the benefits of its full portfolio because 5 in 10 consumers in the United Kingdom do not understand that Coke Zero has no calorie and sugar content. Coke has been subjected to heavy criticism because of the increase in obesity rates among people who consumed lots of sugary drinks. However, in Great Britain, Coke has been espousing a lot of initiatives that will promote healthy living.
Last year, Coke has launched a £20 million anti-obesity campaign that included free fitness classes. This is part of a separate goal that will encourage at least 1 million people in the region to become more active by 2020. It is not entirely clear how the packaging transformation will affect the healthy choices of consumers. The cans do not in any way look different from before and consumers hardly bother to look into the list of ingredients that the product contains.
According to Coke, the new cans and bottles will be presented in all its ads in Great Britain. The low or no sugar and calorie content will also be displayed in its final frames. The media investment for 2015 is expected to double compare to last year. Coke forecasts a 50% increase in its sales from the lower or no calorie range by 2020.
The economic outlook of the European Union has brightened with retail sales rising for the fourth consecutive month in January. Official statistics from Eurostat, a European statistics agency, has shown that retail sales rose by 1.1% since December and by 3.7% if compared to January last year. This was the biggest monthly increase since May 2013 and the highest annual increase since August 2005.
Sale of automobiles increased by 3.2% from the month before while non-food sales were up by 1.2%. However, the increase in retail sales is not the same for all the countries belonging to the eurozone. Germany and Portugal had strong increases in their monthly sales which offset the weaker performance of countries like France where retail sales only increased by 0.1%.
The number one element in economic growth is consumer spending. This used to be held back in the eurozone because of the high rates of unemployment and economic uncertainty. There were fears that a negative inflation might occur in the eurozone with prices in January lower by 0.6% than a year earlier. It could impact on consumer spending because people could delay their purchases in expectation of a further lowering in the prices of consumer goods.
Spending on fuel is being seen as the driver in the increase in retail sales. With the decline in the prices of oil, consumers have more money to spend on goods and services. As the benefits from low oil prices continue, it is believed that the eurozone growth will be able to pick up markedly to 1.6% in 2015. According to Howard Archer, the chief European economist at HIS Global Insight, this means a more competitive euro and a substantial ECB stimulus. A separate report suggests that the rate of growth in the eurozone economy in February was the fastest in a seven-month period.
In February, Markit’s eurozone composite purchasing marketing index rose for the third month to 53.3 from January’s 52.6 which boosted new factory orders. Any number that is more than 50 means expansion which means that the index is now at its highest level since July of last year. This news is very encouraging because it shows renewed growth in France, the eurozone’s second largest economy.