Coca Cola launches new drink, new production line

Coca Cola this week launched a new drink under a Rs 600-million investment and announced a new producton line with direct employment opportunities for approximately 40 people and many ways of boosting the economy.

The company revealed ‘Minute Maid Orange’, an initiative designed to cater for consumers looking for health and wellness beverages in a limited choice market for fruit beverages which it says, does not meet the standards people are looking for. Minute Maid Orange with pulp is described as a 'naturally refreshing juice drink which offers an unmatched taste experience to consumers due to the presence of real orange pulp, best explained by the brand's tagline, 'Feel the Orange, Taste the Pulp.'

Country Manager of Coca Cola Beverages Sri Lanka Ltd, Basil Gadzios told The Sunday Times FT that through the introduction of the new brand, the company is hoping to set new standards of quality and taste within the local juice beverage industry. Gadzios said that with an orange costing Rs.44 at a local grocery story, a bottle of Minute Maid Orange is Rs.30 and offers consumers a cheaper and better quality alternative.

Minute Maid Orange is being launched in a phased manner, starting with Colombo, Negombo, Chilaw, Ratnapura, Gampaha and across the coastal belt up to Galle. As part of the launch strategy, Coca Cola has signed Malith Perera, runner up in the 2006 Sirasa Superstar competition as brand ambassador for the product.

The new production line is equipped to handle a maximum of 550 bottles from the sterilisation of the glass bottle to the filing and the sealing. Sri Lanka is also the first country in West Asia where the 'refundable glass bottle' has been introduced to the market. Gadzios said 80% of juice consumption is through reusable glass, mainly due to the fact that it is environmentally friendly and hygienic standards can be maintained. He also said that the current production facility allows for the expansion of new flavours such as mango, woodapple and mixed fruit.

Coca Cola has spoken to members of the cabinet as well as suppliers on how to facilitate future growth, particularly when it comes to launching a product that has a local palette such as mango and woodapple. Gadzios added that Coca Cola has been looking at distribution in the western province and in rural areas for aid opportunities and employment.

"We believe we can expand but we want to establish the uniqueness of the orange which has the pulp in it," Gadzios explained. "The pulp differentiates us."

Within the next six months, the company will consider launching other products. Country Manager for Sri Lanka and the Maldives from Coca Cola Far East Limited, Manish Chaturvedi, also told The Sunday Times FT that a consumer tasting programme will be initiated over the next three weeks, hoping to target around 180,000 consumers from 20,000 outlets in different parts of the country. Both Gadzios and Chaturvedi said reaction to Minute Maid orange has been very positive and early indications are good.

The company will consider launching new products by the middle of 2008.

Despite launching new products, Gadzios said the core business is still the Coca Cola business which has been a great success since the product first became available in Sri Lanka in 1961 and has recorded double digit growth for the past four years. He said they will be launching a new programme in January 2008 which will take Coca Cola to the next level.

Currently, the company is involved in several corporate social responsibility initiatives including the opening of a girl's school in Hikkaduwa, post tsunami as well as the construction of 23 three houses in Galle. Coca Cola has also taken up extensive water purification and water feature projects in the northeast but Gadzios said the major focus is on education.

He added that distribution continues in the east despite the conflict but said the company experienced major issues when the A9 highway was closed. He did say that as the situation stands, the north(market) is declining.