Strategy-news: Coca-Cola takes on coffee; so does Leonidas ~ Sounds + Food 'n' Retail

In this regular segment I focus on news of note (to me at least), about brands that I'm familiar with. I may someday write about Nordstrom, Costco, and Walmart, whom I hear great things about in terms of service, supply-chain management, and frugality, but until I come in contact with what they sell, I'm not sure I can say much. That said, I'm aware that Walmart made moves into Germany (and failed, which intrigues me), and has taken over at least one chains (Asda) in the UK as well, which I have visited. So never say never.

Coca-Cola and Nestlé
coke_blak.JPG.jpgCoca-Cola has, for a third time, partnered up with Nestlé, this time to develop coffee and tea-products. The previous times, the company worked Nestlé to develop Enviga, a calory-burning drink; and with L'Oréal, a daughter-company of Nestlé, to develop the beauty-drink Lumae. So reports Dutch Marketing Tribune.

A few months ago on Tech IT Easy, I expressed my wonderment at the Coke Zero brand and what their aim was there, as well as held a rant on how un-innovative "junk"-drink (or -food) brands are in general. I think this is an interesting move. It won't make the world a better place, perhaps, but it'll be more colourful.

Similarly, I know that Starbucks formed a partnership with PepsiCo a few years back, to develop canned coffee-drinks, also to be sold in supermarkets. So this could very well be a competitive move, by either Nestlé and/or Coca-Cola to compete with a perceived threat of Pepsico's or Starbucks reach into customers' taste-buds. Update: Looks like MSNBC reported on a similar story last year.

Leonidas expands to the cafe-arena
leonidas.jpgIn other, coffee-related news, Belgian chocolate-manufacturer and retailer Leonidas is opening a coffee-outlet in the Netherlands, a first step of what it calls a worldwide expansion of its products and outlets. This according to Dutch publisher, Elsevier.

Again similarities can be drawn with Starbucks (sorry, SB-haters), which started as a producer and retailer of coffee-beans, before it expanded into the business of coffee-bars as well. I think what both Leonidas and Starbucks have in common is a reputation of offering fine products as well as offering a third place which customers feel comfortable in. It's a relatively easy step-up for Leonidas, if its experiment were to succeed, because it can simply adapt its existing retail-outlets.

Isn't the world of coffee exciting?


Copyright 2006| Blogger Templates by GeckoandFly modified and converted to Blogger Beta by Blogcrowds.
No part of the content or the blog may be reproduced without prior written permission.