The numbers don’t lie, Australians have given Coke Life the green-thumbs down. Credit Suisse analysts are reporting flat sales for the newly launched green drink.
Credit Suisse analysts have estimated that Coca-Cola Amatil sold 7 million litres of the new soft drink over the first five weeks in stores. Theses stats are well below the 14 million litres sold over five weeks for Coke Vanilla in 2005 or the 30 million litres of Coke Zero sold during the same time.
“Repeat purchases of Coke Life are probably short of expectations at this early stage,” Credit Suisse analysts told clients.
“Investors need to be cautious about anticipating a positive earnings surprise from CCL for either the half- or full-year 2015 profit reports,” Credit Suisse warned.
These stats contradict what Coca-Cola Amatil’s managing director Alison Watkins told shareholders during the annual general meeting that the green-labelled beverage is exceeding expectations.
“At this early stage of the year, we are encouraged by volume growth, however low food inflation and continued challenging market conditions are constraining price realisation,” Watkins said.
“Longer term, our expectations would be for Coke Life to represent one to two per cent of total brand Coke volumes.”
There are some conflicting stories about whether or not Australians are actually purchasing Coke Life.