Coca-Cola Amatil (ASX: CCL), the market leader in carbonated soft drinks, has been on a mend as seen lately with various initiatives being undertaken. One such initiative is to do with the launch of new products to gain more traction from customers. CCL now seems to get a heightened sigh of relief with the news that Woolworths has shown to have a liking for CCL’s new product, which is Coca-Cola No Sugar, and the latter now indicated to stock the sugar-free cola in stores in the coming weeks. This has been a big move considering that Woolworths early this year only, refused to stock Coca-Cola No Sugar considering that there are already many other products being offered by Coca-Cola that give a great range of variety to customers. However, backed by customer demand, Coca-Cola No Sugar has now found some space at Woolies which started stocking 250 millilitre cans, and aims to have 1.25 litre bottles soon.
 

The beverage company has been primarily working on launching new and better products considering that Woolworths had earlier delisted Coca-Cola’s two more products, namely, Glaceau Vitamin Water and Zico coconut water.

CCL is thus trying to leave no stone unturned to save the relationship with the Australian retailer. CCL’s short-term and long-term prospects are thus under scrutiny considering that the group needs to maintain its long-lasting partnerships, and at the same time, sustain profitability. Primarily, competition from brands such as Voss, San Pellegrino and Cape Grim etc. are posing tough competition in the bottled water segment. CCL has also worked on pricing to mitigate the rising competition to some level. Further, CCL is developing strategies to have better products in other segments such as juice, tea, flavoured milk, and sports drinks, while many small competitors are appearing to pose threat with emerging new products.

The group is also planning to keep a track of sales growth while there may be some earnings impact from the implementation of the container deposit schemes. However, the group is expected to run the show based on its broad portfolio and initiatives on better margin products to drive performance going forward.

CCL stock has been down 6% in last three months (as at November 15, 2017).

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