Domino’s, Woolies give Coke a flat re­fusal

Townsville Bulletin - - NEWS - MELISSA JENK­INS

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 around 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 Septem- ber, with the new con­tract to run for sev­eral years. Coca- Cola Amatil shares closed down 31c, or 3.4 per cent, at $ 8.91 yes­ter­day, their low­est level since early June.

The loss of the Domino’s con­tract comes as su­per­mar­ket gi­ant Wool­worths con­firmed it was not stock­ing the new Coca- Cola No Su­gar.

Launched in Aus­tralia and New Zealand in June, Coca- Cola No Su­gar will even­tu­ally re­place Coke Zero but Wool­worths in­sists its cur­rent range of soft drinks is enough.

Some 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 no­sugar 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 would 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.

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