Sunday , January 24 2021

Coca Cola is moving to produce energy drinks



NEW YORK (CNN) – Coca-Cola wants to become a full-service beverage company and is preparing to launch an energy drink to help achieve that goal.

The company recently said it is considering adding a new beverage, Coca-Cola Energy, to its product list by adding guarana extract and other naturally derived ingredients to the drink to add more caffeine and also provide a sugar-free product.

The Coca-Cola plan has lifted its partner, Monster, which produces energy drinks, and Coca-Cola has filed a trade arbitration order to see if the new product would violate the agreement signed when Coca-Cola bought a stake in Munster .

James Kennessy, Coca-Cola's chief executive, said he was looking for strong growth and feared no inconvenience.

"Coca-Cola wants to take advantage of all the opportunities available," said Duan Stanford, editor of Beverage Digest. "When you do this, you sometimes encounter contractual obstacles."

"The energy sector is one of the fastest growing sectors in the beverage industry," says Laurent Grandit, consumer analyst at Guggenheim Securities. "It's a very profitable sector because consumers are accustomed to paying more for soft drinks.

Coca-Cola has realized the importance of energy drinks since 2014, when it signed an 18.5% stake in Munster and became Munster's preferred distribution partner around the world.

Coca-Cola is seeking consumers who can not access Red Bull or Monster, using natural ingredients and leveraging their well-known brand, and seeing that, in this way, the new drink can be complementary, not rival to Monster.

With more energy drinks, Coca-Cola began diversifying its beverages. Earlier this year, Coca-Cola turned to coffee and sports drinks. In August, it announced that it had purchased the Costa Coffee coffee network for $ 5.1 billion .

In September, Coca-Cola said it was considering switching to a growing cannabis-containing beverage market. A few weeks ago, the company announced plans to buy a large stake in BodyArmor to become its second-largest shareholder. Pepsi

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