Carbonates in New Zealand

2020 IMPACT

Off-trade sales of carbonates surge, while on-trade sales slump

Movement and trading restrictions in 2020 meant that while New Zealand was in a COVID-19 enforced lockdown, supermarkets was the major distribution channel from where consumers could purchase carbonates from late-March to early May. This resulted in stronger current value and volume growth through off-trade, although this trend was largely a transference of demand, as gains through the latter channel were largely offset by on-trade declines.

New payment options embraced for vending machines

Dominant carbonates player Coca-Cola Amatil, which offers a wide product portfolio within the category including brands Coca-Cola, Sprite, Schweppes and the increasingly popular Coca-Cola Zero Sugar, announced in 2020 that it had partnered Centrapay – a digital asset integrator - to facilitate payment via bitcoin through its vending machine network in New Zealand. The move to accept bitcoin as a payment method was designed to reduced contact during the pandemic, and followed a surge in the usage of contactless card payments in the first half of 2020.

Business continuity plans developed and implemented

The nature of carbonates as one of the largest categories within soft drinks, with the two major players Coca-Cola Amatil and Frucor Suntory New Zealand Ltd (Pepsi, 7-Up) being significant contributors, saw both companies develop and implement business continuity plans with suppliers and service partners. Given the supply chain issues posed by COVID-19, these leading players implemented plans to ensure that their production facilities could remain operational should the pandemic provide further disruptions.

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