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Coca-Cola launches a new drink, the most important in ten years

This is a new brand of flavored water that will replace Dasani and will be sold in eight flavors. Aim for a sector that is growing

Coca-Cola said that in March 2020 it will launch a new brand of sparkling water called "AHA" and according to the beverage giant, this is the largest product launch in a decade.

The product It will be sold in eight flavors, two of which (citrus green tea and black cherry + coffee) have 30 mg of caffeine, so they point to the popular sparkling water and caffeine from Hi-Ball, which belongs to Anheuser Busch. The new line will also seek to gain a share of the market for the growing Bubly line from PepsiCo, a brand that began from the ground up in 201


AHA will replace Dasani sparkling water from Coca-Cola.

"We want to double the segment with flavored water because it is a large sector that is growing," says Celina Li, vice president of the water department of Coca-Cola North America. "AHA is the brand that we will invest in in a sector in which you play hard. "

Coca-Cola added that by 2020 it will also introduce new flavors of water without gas in its Smartwater line.

The volume of unit drop, an important performance indicator for beverage companies, increased only 1% during the third quarter of Coca-Cola water and improved the beverage sector in North America.The general business, which Coca-Cola refers to as "hydration" and which also includes VitaminWater and Powerade, presented a relatively flat sales volume over the nine months which ended on September 27.

Analyzing it in perspective, the unit volume for Coca-Cola branded products increased by a solid 2% during the third quarter, but in PepsiCo (PEP), Coca-Cola's rival, increased the sales of bottled water such as LIFEWTR and Propel by two figures in the third quarter.

This year Coca-Cola's water sales have increased according to Nielsen data remained stable. Nielsen's total operations on bottled water (excluding gas and gas) have increased by about 5% to $ 12.8 billion.

Nielsen estimates that Coca-Cola has a market share of approximately 14% in the water industry in the United States. However, Coca-Cola's water department has the second highest gross profit margin in its beverage portfolio, behind soft drinks, but in front of coffee and tea, according to Coca-Cola data. The North American business is the third largest in terms of percentage of revenues, behind soft drinks and juices, dairy products and herbal beverages.

The decision to review the water industry is the most sensible thing to do. Coca-Cola is very likely to add a new growth stock during 2020. AHA jars also look good and should stand out on shelves filled with sparkling water. Although, after all, the brand is not the most important thing, but what is in each jar.

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