Things aren’t going better for Coke
COCA-COLA Amatil has suffered a dual blow, losing a supply contract with Australian pizza giant Domino’s to its bitter rival, Pepsi, and failing to get its latest no-sugar offering on to Woolworths’ supermarket shelves.
Domino’s has dumped Coca-Cola Amatil in favour of Pepsi/Schweppes as its soft drink supplier — a move Deutsche Bank analyst Michael Simotas estimates will reduce CCA’s Australian drink volumes by about one million cases, or 3 per cent.
“While some of the costs associated with servicing the Domino’s account may be able to be removed, a 3 per cent volume hit is meaningful,” Mr Simotas said in a note.
Domino’s will switch to Pepsi from September, with the new contract to run for several years.
Coca-Cola Amatil shares closed down 31 cents, or 3.4 per cent, at $8.91 yesterday, their lowest level since early June.
The loss of the Domino’s contract comes as Woolworths confirmed it is not stocking the new CocaCola No Sugar.
Launched in Australia and New Zealand in June, CocaCola No Sugar will eventually replace Coke Zero but Woolworths insists its current range of soft drinks is enough.
About 60 per cent of the soft drinks on supermarket shelves are marketed as diet, low sugar or no sugar products.
“We have taken the decision to not range this product at this time,” a Woolworths spokesman said yesterday.
“Our customers looking for a no-sugar or low-sugar cola option have ample choice already in the category, across a range of different pack sizes and formats.”
A Coca-Cola Amatil spokeswoman said the No Sugar Coke will still be on thousands of supermarket and convenience store shelves, including at Coles. “We’re entirely confident that Coca-Cola No Sugar will be a huge success,” she said.