Carbonates in New Zealand

PROSPECTS

Low calorie outperforms regular in cola carbonates

Despite low calorie cola carbonates seeing a better performance than regular cola carbonates in off-trade value terms in 2017 (growth compared with decline), the uptake of the new variants Coca-Cola Life and Pepsi Max was slow. 2016 saw a drop in current value growth in low calorie cola carbonates compared with 2015, when the products were introduced, and although 2017 saw a turnaround in growth, this was mainly due to the long-standing low calorie products Coca-Cola Diet and Coca-Cola Zero driving volume growth.

Brand extensions continue

The most popular trend in non-cola carbonates over the review period was the extension of popular brands into other flavours. This was particularly the case for the brands Fanta (originally in orange, now also available in blueberry, grape and watermelon), and Mountain Dew (the original variant was expanded into Code Red, Passionfruit Frenzy and Live Wire).

Health and wellness performs well

Health and wellness segments performed well within carbonates in 2017, including low calorie cola carbonates, organic cola (despite low value sales) and reduced sugar non-cola carbonates. Many of the mainstream well-known brands in non-cola carbonates have ranges of reduced sugar or no-sugar products, and continue to explore health and wellness opportunities within soft drinks in general.

COMPETITIVE LANDSCAPE

Unchanged rankings

Coca-Cola Amatil (NZ) continued to hold a healthy lead in carbonates in 2017, with its flagship brand Coca-Cola continuing to find niches to maintain its dominance in the highest value category within carbonates, cola carbonates. Product extensions, including healthier alternatives such as Coca-Cola Life and Coca-Cola Zero Vanilla, pushed growth for the company in low calorie cola.

Frucor Beverages loses a major on-trade customer

The second ranked company in carbonates, Frucor Beverages, struggled to maintain its share in 2017. This was mainly due to the company focusing its efforts in healthier categories, such as bottled water, rather than on carbonates.

Smaller companies continue to perform well

Smaller companies within carbonates have performed well, increasing their value shares; in particular, Bundaberg Brewed Drinks (with the Bundaberg brand, distributed by Neil Cropper in New Zealand) and The Better Drinks Co. Both companies focused on expanding in non-cola carbonates.

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