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Posted by Daniel Workman Sep 2, 2006 |
Coke has named its new brand of premium coffee products as Far Coast.
Already the largest beverage supplier to the the restaurant industry, Coke will provide its trademarked expresso machines and brewing systems to clients in the entertainment and food services sectors including movie theatres.
Coke is targeting the growing cohort of well-heeled baby boomers. In early September 2006, the company introduced one new retail outlet in Toronto's upscale Yorkville area as part of a global test market.
As reported by the Globe and Mail, Coke says that it doesn't plan to open more retail stores nor does the company intend to compete with Starbucks or Tim Hortons.
We beg to differ. Coke will aggressively expand into the world hot beverage market if it proves to be profitable.
And profitable it is.
Market share for specialty coffee sales has increased some 15 percent annually for the past 10 years. Coffee is the number one beverage in Canada, with two-thirds of Canadians drinking coffee daily. In the U.S. soft drinks are still king, but coffee is a close second with 53% of Americans drinking coffee at least once per day.
Coca-Cola (COKE on NYSE) closed at US$58.38 on September 1, 2006.