Coca-Cola tries to win space in Guarana

Coca-Cola Brazil put on the market in recent days a Guarana soda Fanta, branded with the bold goal of achieving leadership in the category, something that never got with the Kuat, on the market for 18 years. The attempt is made at the time the soft drink market shrinks 8.9%, according to data from Nielsen.
In 2016, the total sales of soft drinks in the country shrank 5.5 percent to 10.98 billion liters, according to Euromonitor International. While sales of carbonated soft drinks fell 6.6% glue, to 5.18 billion liters, sales of non-cola soft drinks-led by Guarana-4.5% to 5.80 retreated billion liters. The less intense fall in category Guarana has led companies in the industry trying to gain space in this segment.
In the first quarter of this year, while sales of carbonated soft drinks fell 8.9%, Coca-Cola Brazil registered a fall between 4% and 6% in volume. The company did not disclose the specific performance in non-cola soft drink category. Javier Rodriguez, Vice President of marketing for Coca-Cola Brazil, said the goal with the Fanta Guarana is to expand the number of customers to reach the top of the category, but did not give a deadline for overcoming the Ambev, owner of Guaraná Antarctica.
"Fanta Guarana will fill a gap, being a national option and young appeal", said Rodriguez. The Executive added that the Kuat is sold primarily for the adult audience.
Felipe Ghiotto, chief marketing officer of Ambev''s soft drinks, said sales of Guarana Antarctica for the young audience have performed above the market average. In the first quarter of 2017, Ambev in Brazil''s sales of non-alcoholic beverages-soft drinks, waters, teas, sports drinks, energy drinks and juices-presented positive variation of 0.1% by volume and 2.6% drop in revenue. Sales of Guaraná Antarctica, which represent the largest part of the business, had a virtually stable performance, according to the Executive.
Guarana Antarctica Guarana soft drink in the country''s best-selling non-cola category (which includes flavors of Orange, grape, lemon, Apple and others). The brand accounts for 17.1% of sales in value, according to Euromonitor. The Kuat has 7.3% stake. Viva Schin, Heineken, represents 5.8% of sales of non-cola soft drinks.
Coca-Cola leads the non-cola market, with 29.4% share. The Fanta is the second best selling brand in the category, with 13.1% of sales. Coca-Cola also owns the brands Sprite, Schweppes and Regionals Tai, Simba, plow, Tuchaua and Jesus.
Ambev, with Antarctica, Antarctica Zero and Fresca, is runner-up, with 25% of the non-cola soft drinks market. The company also owns the brands Citrus Antarctica, Antarctica, Antarctica and Tonic Soda Baré.
"In the last four years, the market share of nearly 20% grew Guarana Antarctica, even with the slumping market. There''s a lot of competition in the category of Guarana, but the brand follows with robust performance, "said Ghiotto. Ambev reported that keeps unchanged the marketing plan for the brand and have confidence that you can gain market share in the category.
In addition to advertising campaigns, Ambev invests in expansion of sales of Guarana Antarctica in returnable bottles of 1 liter, to reach consumers with drop in family income. The company conducts promotions once every two months in wholesale and atacarejo networks to expand sales, according to the Executive. Coca-Cola, for your time, created the campaign "take that", with a stamp indicating that their soft drinks are on sale.
The Kirin Brazil, bought by Heineken in February, reformulated the brands Alive Schin and Itubaína in 2016 and now extend the distribution in the country. But, in the first quarter, sales of soft drinks fell 14.1% in volume.
Source: Valor Econômico