Coca-Cola has announced plans to make a push into coffee with the launch of Coca-Cola coffee later this year.
The company will unveil the new drink in more than 25 markets around the world later in 2019.
Commenting on its plans, Coca-Cola CEO, James Quincey, said: “Coke Coffee was designed to reach consumers during specific occasions and channels like the mid-afternoon energy slump at work.”
According to the company, the drink blends Coke with coffee, but has slightly less caffeine than a normal cup of coffee but more than a can of coke.
The company’s push into coffee comes as consumers have moved away from drinking sugary drinks but more of water, Coca-Cola zero sugar or plant-based drinks. Coca-Cola Coffee contains less sugar than a Coke of the same size.
Coca-Cola is also feeding into a trend that is popular, coffee. According to Mintel, a global market research company, ready-to-drink coffee is the fastest growing segment in the coffee category, growing 31% in 2016 and 2017. Chilled coffee drinks such as cold brew are also growing in popularity with consumers.
Coke coffee isn’t entirely new to the soft drinks giant. It has a strong market in Japan, where canned coffee has been popular in vending machines for decades. Coca-Cola’s Georgia Coffee brand has surpassed $1 billion in sales and expanded to other Asian countries.
Coke first made foray into coffee in 2006 with the launch of Coca-Cola Blak, but discontinued it after two years of disappointing sales. In 2017, it tried again with the introduction of Coca-Cola Plus Coffee in Australia. After revamping the taste to heighten the coffee aroma, the company brought it to Asia in 2018.
“The early results are very promising, delivering incremental growth for the Coca-Cola brand with very little cannibalization,” Quincey told analysts in July 2018.
Coke also has plans to start selling ready-to-drink Costa coffee products in European markets starting in the second quarter of 2019. Coke bought the British coffee chain in 2018 for $5.1bn and finalized the deal in January.