Prices of soft drinks rise amid FX woes, inflationary pressure

Prices of soft drinks are on the rise as the industry continues to grapple with the fallout from macroeconomic headwinds induced by the drop in oil price. Nigerian Bottling Company (NBC), the More »

How brewers are selling beer with folklore

As Nigeria’s recession deepens and consumers pockets are squeezed, majority of those still drinking have shifted their beer preferences to value or low cost brands. Nigerian Breweries Plc, the country’s leading brewer More »

Category Archives: Soft drinks

Cost savings and product quality enhancements boost Suntory Beverages half-year results

Japanese beverage firm, Suntory Beverage & Food Limited said on Tuesday that half-year sales and profit for 2017 was lifted by focus on strengthening its brands and creating new demand as well as managing cost structure and product quality improvements.

The company which makes Lucozade and Ribena said that revenue for its non-alcoholic beverages and foods grew 1.7% in the half-year through end of June to ¥685.7bn yen ($6.2bn), from ¥674.4bn ($6.09bn) in the same period in 2016.

Coca-Cola seeks sweetener innovations from scientific community, public

Atlanta-based Coca-Cola Company, said it wants to reach out to the scientific community to find a “naturally sourced, safe, low- or no-calorie compound that creates the taste sensation of sugar when used in beverages and foods.” The grand prize is $1 million.

The other is the “sweet story challenge” that invites people around the world to “submit written anecdotes and videos about their favorite, tried-and-true methods of naturally sweetening foods or beverages in their cultures, communities or families.” Up to five individual or team winners will vie for $100,000 in total prize money.

Seven-Up losses pile up as finance charges skyrocket

Seven-Up Bottling Company Plc (“SBC”), the bottler of PepsiCo brands of soft drinks in the country, on Friday reported a net loss of N2.5bn for the first quarter of its 2017/2018 financial year (Apr – Jun) despite recording nearly 20% sales growth of N31bn from N27bn in the previous year. The loss adds to the company’s woes which had reported a N10.7bn loss in June for the 2016/2017 financial year.

The company cited skyrocketing net finance cost as the reason for the first quarter loss. Finance charges rose a record 85% to N1.8bn, from N961m in the same period a year ago.

Coca-Cola half-year revenue, profit fall on refranchising costs, currency headwinds

Coca-Cola on Wednesday reported a 16% drop in revenue for the second quarter of 2017, to $9.7bn, and a half-year sales decline of 14% to $18.8bn.

The Atlanta-based company blamed the drop on refranchising costs of its North American bottling operations and currency headwinds. The company said that it took a charge of $653m related to its North American bottling operations.

However, despite the drawbacks, analysts hailed the results noting that it was higher than expected. The company’s new CEO James Quincey said that the results were in line with their expectations of turning the company into a total beverage firm.

PepsiCo names Ramon Laguarta President; makes other senior leadership appointments

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PepsiCo on Thursday announced the appointment of Ramon Laguarta, a 20-year veteran of the beverage giant as President, filling the number-two position in the company and a slot that has been vacant since 2014 when the former president, Zein Abdalla left the firm.

In his new role, the 53-year old Laguarta will oversee PepsiCo’s global category groups; its global operations, corporate strategy, and public policy, and government affairs, as well as PepsiCo’s Foundation.

Appeals Court rules against NBC over Fanta, Sprite labeling requirement

The Nigerian Bottling Company (“NBC”), bottlers of the famed Coca-Cola products in Nigeria suffered a legal setback in its bid to stop the execution of a judgement by a Lagos High Court which declared Fanta and Sprite to be poisonous soft drinks when consumed with vitamin C.

In a judgement delivered on February 15, a Lagos High Court dismissed all claims against the NBC and held that the company had not breached its duty of care to consumers and that there was no proven case of negligence against it.

PepsiCo sustains revenue, profit growth with price increases, healthier drinks and snacks

PepsiCo said on Tuesday that price increases implemented on its premium products in North America helped lift sales and profits in the second quarter.

The soft drinks giant recorded a 2% growth in revenue to $15.4bn in the second quarter, while net profit climbed 5% to $2.1bn. Half-year profit grew 17% to $3.4bn. It notes that “guilt-free” drinks which it describes as drinks with fewer than 70 calories such as diet sodas, and foods with lower levels of sodium and saturated fat like baked crisps which now account for about 45% of the its sales helped fuel higher revenue and profit.

CCBA buys Kenya’s third largest Coke bottler

Coca-Cola Beverages Africa (CCBA), the South African-based Coke bottler announced on Thursday it has acquired Equator Bottlers Limited, Kenya’s third largest Coke bottler for an undisclosed amount.

According to media reports, Kenya’s regulators (Competition Authority of Kenya) gave their blessing to the deal last Friday.

Big Beer, Wine and Soft Drinks Firms Vie for Majority Stake in CCBA

Big multinational beer, wine and soft drinks firms are competing for the 57% majority stake in Coca-Cola Beverages Africa (CCBA).

First reported by Reuters and Bloomberg in April, Heineken, Coca-Cola Hellenic and Castel Group are among companies that have bid for a majority stake in CCBA, according to people familiar with the matter.

Seven-Up losses widen at year end

Seven-Up Bottling Company Plc, on Friday reported a net loss of N10.7bn for the full-year ended 31 March 2017, down from the N3.3bn profit recorded a year earlier.

The company blames higher input costs, driven by inflation and unrealized foreign exchange loss for the poor performance. Cost of sales in the period rose 57% to N95bn, up from N60.6bn.