Coca-Cola unit managing the Costa Coffee and Caffè Vergnano brands reports ongoing sales recovery and states its intention to strengthen out-of-home coffee channels adversely impacted by Covid-19
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Costa Coffee branded coffee products continue to ‘progress well’ | Photo credit: Costa Coffee
Reporting its financial results for the six months ended 2 July 2021, Coca-Cola Hellenic Bottling Company (CCHBC) said net revenue grew 14.7% to €3.3bn (£2.8bn) compared to the same period in 2020. Net profits grew substantially to €233.1m (£198.4m) during the period, an 88% increase on 2020.
CCHBC said its roll-out of Costa Coffee branded coffee products, which include ground coffee, whole bean, coffee pods and a ready-to-drink (RTD) range continued to ‘progress well’ and would be ‘strengthened’ by the planned distribution of retail Caffè Vergnano-branded products from 2022, the Italian retail coffee and café chain it acquired a 30% stake in June 2021.
Despite its focus on at-home coffee products, Coca-Cola HBC also stated its out-of-home coffee channel would be a ‘key focus’ for the remainder of 2021.
“We are very pleased with the first half in which we increased value share gains, revenues and profitability as well as making continued progress on our strategic priorities,” said Zoran Bogdanovic, CEO, Coca-Cola HBC.
“We have strengthened our coffee strategy with Caffè Vergnano, which will add a premium offering alongside the broad appeal of Costa Coffee.” added Bogdanovic.
The distribution of retail coffee products under established café brands could prove a lucrative opportunity for Coca-Cola. Swiss food and beverage giant Nestlé has also found significant success marketing Starbucks-branded at-home coffee products as part of the $7.1bn Global Coffee Alliance.
In the US, food manufacturer J.M. Smucker Co reported sales of established retail coffee brands, including a licensed Dunkin’ range, contributed to strong full-year sales.