CCL - Coca-Cola Amatil

[Miner]

I don't see how Coke and coffee are competitors.

Perhaps I'm biased in that I can't stand the taste of coffee but think Coke is OK (though I don't drink much of the stuff) but I can't see how a coffee shop diverts people away from drinking Coke. It seems to be a very different market to me.

Surf1976 - I do not want to digrace from CCL topic but this is my response .
You, I and others must have different tastes, likes and that's how market survives with differentiating products. So you were on the money by stating your disliking on coffee. Put in this way there are many who do not like beer and prefer wine/spirit instead. Same way we have different likings for different beers. All are coexisting and some are making more money than others . 50 % is driven by individual tastes and 50% is through marketing. See how lovely calendars come with famous spirits. Not because of their sole taste but largely on marketing.

Coffee and Coke both are non alcoholic caffiene based beverages. One is more sold during summer than others. Now think of cold coffee during summer ?? Now probably you see how a coffee can take market share from a cold drink - that is fundamentally. Then product marketing comes to differentiate one brand of coffee than the others and so are cold drinks. Sorry - not lecturing or suggesting I know a lot here but sharing my thoughts to support the orginal statement how I could see CCL shares could go down unless they make serious proactive effort to lift the marketing strategy to position themselves in Australian market - it is a very small cherry compared to North American apple Coke enjoys.

 

[Smurf1976]

Iced coffee seems to be big business already judging by the amount of marketing effort put into it. Farmers Union being the main brand at least around here.

But CCL isn't just Coke. It's also various other soft drinks, they jumped on the bottled water bandwagon successfully and so on.

They do seem to have an interesting pricing strategy however, and that goes for all the soft drinks companies. Buy a 600mL bottle at a supermarket or you could pay less and get 2 litres instead. I don't mean the price per litre is lower in the big bottle, I mean the actual shelf price is lower.

If someone wanted a 600mL drink then logically they'd buy the 2 litre one and either keep the rest for later or simply drink a third of the bottle and throw the rest away. That the high priced 600mL size actually sells says an awful lot about marketing and how consumers think.

 

[Miner]

Iced coffee seems to be big business already judging by the amount of marketing effort put into it. Farmers Union being the main brand at least around here.

But CCL isn't just Coke. It's also various other soft drinks, they jumped on the bottled water bandwagon successfully and so on.

They do seem to have an interesting pricing strategy however, and that goes for all the soft drinks companies. Buy a 600mL bottle at a supermarket or you could pay less and get 2 litres instead. I don't mean the price per litre is lower in the big bottle, I mean the actual shelf price is lower.

If someone wanted a 600mL drink then logically they'd buy the 2 litre one and either keep the rest for later or simply drink a third of the bottle and throw the rest away. That the high priced 600mL size actually sells says an awful lot about marketing and how consumers think.

100% AGREED. I chose the example of Coke and coffee for the sake of comparison specially every one including a child loves coke and the brand is well known. Not many of us probably are aware that Mt Franklin is also owned by CCL and it has acquired most of other competitors including KIRK (used to be cheapest priced lemonade).

http://ccamatil.com/OURBRANDS/Pages/Australia.aspx - all products from CCL are listed in the link.

That is the key point - product diversification from CCL and thrust to make it known that we just do not make only coke. I am only a small holder of CCL and would consider the million dollar paid executives would consider to change the product mix and marketing strategy to uplift the profitability. I would stop it here and hopefully one bright guy from CCL would invest time to read our posting here and do some thing to make money for all of us.

Just one pun here considering I am an investor of CCL not a trader. What I personally like is immaterial also. I do not take a single drop of coke . So my personal choice of beverage does not matter even if I want to make money from my investment . It is like one vegan is investing on beef cattle firm !!!!!

 

[skc]

That was my wishful thought that with Starbucks coming to Australia will snatch not only Coke market but also some of the known coffee chains.

Starbucks had already come to Australia, failed and retreated! Where have you been since 2003?

http://www.news.com.au/finance/busi...cks-in-australia/story-fnkgdftz-1226934958931

Getting similar growth from the Starbucks assets will be major challenge given the US chain has struggled since opening its first store in Sydney in 2000.

After years of losing money, the company closed about 60 stores and sacked 685 staff, leaving its current stable of 24 stores along the east coast

Offering free Wi-Fi in Starbucks was like a wonderful tactics back in 2001. Today I doubt it is important at all.

Sol Lew isn't that cashed up. They talked about him taking over Myer which is barely worth $1B. CCL despite a fallen share price is still worth $6.8B. Not to mention the fact that it's 30% owned by Coca-Cola Holdings Ltd (the US mother brand) so no one will be taking over CCL except them.

I don't see how Coke and coffee are competitors.

+1. Completely different markets and occassions. I drink both and I really don't think I've ever thought of one as the substitute for another.

 

[Miner]

Starbucks had already come to Australia, failed and retreated! Where have you been since 2003?

http://www.news.com.au/finance/busi...cks-in-australia/story-fnkgdftz-1226934958931



Offering free Wi-Fi in Starbucks was like a wonderful tactics back in 2001. Today I doubt it is important at all.

Sol Lew isn't that cashed up. They talked about him taking over Myer which is barely worth $1B. CCL despite a fallen share price is still worth $6.8B. Not to mention the fact that it's 30% owned by Coca-Cola Holdings Ltd (the US mother brand) so no one will be taking over CCL except them.



+1. Completely different markets and occassions. I drink both and I really don't think I've ever thought of one as the substitute for another.

Dear SKC

I always adore your postings and thanks for reading the posting.
In 2003 I was busy in digging gold in Telfer Mines and did not bother of learning about Starbucks. In fact had no interest on them until last three years spent in Canada and US .
I do not know how come Soleman Lew associated with CCL ? Surely you did not mix up with few products of CCL while writing on the thread

Mate, we all are entitled of our opinions and I have been penning purely from marketing perspective. There are always different perspectives of life. Who knew about Alibaba or Google before they came in the market. Some stupid thougths create innovations and product niche. Always unconventional routes. As I have put the caveat in the fortfront, I was sharing my wishful thoughts in the forum and never claimed to be expert - never before you however at least (not pun - I do mean it).
Bottom line - I want to see rays of hope to get my CCL shares paid off at my retirement and not just a trading gain.

Good night to all - it is almost 11 PM.

 

[Wysiwyg]

If someone wanted a 600mL drink then logically they'd buy the 2 litre one and either keep the rest for later or simply drink a third of the bottle and throw the rest away. That the high priced 600mL size actually sells says an awful lot about marketing and how consumers think.

Tapping the "convenience" factor. The 600ml are cold at the checkout entrance where as the shelf bottles are hot. One has to be conscious of such traits so as to not bow to the desire. I watch other peoples actions a lot and if they want a shelf item then the reach is for between hip and shoulder height. Few bend to view lower shelves or reach above head height for items. The modern day illness of backache.

 

[skc]

Dear Miner,

I do not know how come Soleman Lew associated with CCL ? Surely you did not mix up with few products of CCL while writing on the thread

I was following on from your mention of PMV and Solomon Lew.

What we could speculate on PMV and Solomon Lews's massive cash in hand situation. Lew may heal up his wound to offer a take over of CCL when the price still slides. So from speculation perspective only there is a merit for CCL or a massive shake up with current market.

Mate, we all are entitled of our opinions and I have been penning purely from marketing perspective. There are always different perspectives of life.

Of course! But when you offer an opinion on the forum, I assume you are also interested in feedback which may either verify or dispute your view.

Coffee is not a problem for Coke... it's really much closer to a fact than a perspective.

Who knew about Alibaba or Google before they came in the market. Some stupid thougths create innovations and product niche. Always unconventional routes. As I have put the caveat in the fortfront, I was sharing my wishful thoughts in the forum and never claimed to be expert - never before you however at least (not pun - I do mean it).

Thanks Miner. You have always been so polite! Yes, stupid thoughts are often the grandmother of innovation. But random postulations are often the Mother of bad investments!

Bottom line - I want to see rays of hope to get my CCL shares paid off at my retirement and not just a trading gain.

I have offerd you one - the Coca-Cola company taking it over.

And I will offer you a second one... it's the cheapest Coca-cola bottler in the world in terms of earnings multiple.
- The "health trend" is somewhat structural but a slow decline. It can be diversified given time.
- Woolies/Coles problem is also structural but will find a bottom somewhere. There will always be coke in supermarkets.
- The price competition from Pepsi is mostly cyclical market dynamics. There will be times when competitions are worse than others (not helped by Woolies/Coles).
- The problems in Indonesia are pretty standard in an emerging market. There are risks and there are rewards.

So....either an operational turnaround or may be even a private equity firm taking it over (after getting the nod from the US) if the $A falls low enough.

Good night to all - it is almost 11 PM.

It's now past 12pm Good night!

 

[McLovin]

+1. Completely different markets and occassions. I drink both and I really don't think I've ever thought of one as the substitute for another.

+2

I drink one and don't touch coffee.

And in the spirit of this thread, it's coming up on 1am. Goodnight.

 

[burglar]

+2

I drink one and don't touch coffee.

And in the spirit of this thread, it's coming up on 1am. Goodnight.

The first one (Coke) is possibly good for you.

The first coffee, as a heart starter, is probably good for you.

The first spirit* of the day, may also be good for you.

It's coming up 1:00 am local time, so Good Morning!






*I like Jim Beam and Coke.

 

[VSntchr]

Review announcement out and I really don't think I can make it through 93 pages...
Basic run down is that TCCC is injecting half-a-bil into Indo to try and get things moving. Oh and CCA announced some cost savings yesterday...

I am watching CCL, but so far I haven't seen anything enticing enough to start counting my dollars for an investment.

But don't listen to me, I didn't even read the presentation!

 

[ROE]

+2

I drink one and don't touch coffee.

And in the spirit of this thread, it's coming up on 1am. Goodnight.

+3 I drink both, I always like coke doesn't matter the price as I dont drink a lot
a drink here and there but I like its taste well before I was a shareholder

Coffee get me going in the morning, coke for hot summer day or when I feel like a bit
of sugar after a long run

have both RFG and CCL and you are covered coffee and coke

 

[skc]

Green coke anyone?



I don't know about the packaging.... feels like the wrong shade of green!

 

[TPI]

+3 I drink both, I always like coke doesn't matter the price as I dont drink a lot
a drink here and there but I like its taste well before I was a shareholder

Coffee get me going in the morning, coke for hot summer day or when I feel like a bit
of sugar after a long run

have both RFG and CCL and you are covered coffee and coke

ROE, did you pull the trigger on more CCL today?

Coke Life will be interesting, only just released in UK and US soon I think, and already in some South American countries but slightly different flavour there apparently.

April launch date will give more time to see the overseas response.

 

[So_Cynical]

I have seen a lot of these ads around town over the last 2 weeks, Coke changing things up...good to see the marketing guys having a go, Coke has one of the biggest merchandising and marketing teams in the country.
~

 

[Wysiwyg]

Every time I go shopping at Woolies, the softdrink aisle has boxes of Coke and associated brands stacked up along the aisle floor in front of shelves. Maybe it's an oversupply issue and the company needs to throttle back on production for a bit and let the cravings build up in customers. Well with Christmas soon and the rise in parties/barbies etc., Coke and associated brands might get a sales lift.

 

[burglar]

I have seen a lot of these ads around town over the last 2 weeks, Coke changing things up...good to see the marketing guys having a go, Coke has one of the biggest merchandising and marketing teams in the country.
~

A distinctive bottle, drawn on the otherwise plain can! QI

 

[So_Cynical]

A distinctive bottle, drawn on the otherwise plain can! QI

That distinctive bottle (thinking about it) is probably one of if not the most recognisable bottle in the history of bottles, with just a silhouette and no branding at all every body knows what it is...that's an amazing level of brand recognition.

 

[ROE]

ROE, did you pull the trigger on more CCL today?

Coke Life will be interesting, only just released in UK and US soon I think, and already in some South American countries but slightly different flavour there apparently.

April launch date will give more time to see the overseas response.

I pulled the trigger a while ago from low 9 and bag first dividend and average down to low 8

I keep buying as I got cash come in didn't worry me too much a business like Coke
the fact is these business are best buy when they have negative sentiments, any other times you be paying a much higher price

 

[ROE]

Green coke anyone?

View attachment 60064

I don't know about the packaging.... feels like the wrong shade of green!

Agree, I like the red and white colour better, probably one of a very simple yet very recognisable
brand.

I hope they dont go overboard because of the pressure they are under and start playing with all sort of
stuff, even stuff that are still very good and need no touching... red and white label brand is perfect no need to mess with it.

 

[JTLP]

Agree, I like the red and white colour better, probably one of a very simple yet very recognisable
brand.

I hope they dont go overboard because of the pressure they are under and start playing with all sort of
stuff, even stuff that are still very good and need no touching... red and white label brand is perfect no need to mess with it.

Hi ROE,

They've actually been running this 'Coke Life' in Sth America and a few other markets, and it's tested very positively for them.

The core of this product will be
A) How cannibalistic it is to their core?
B) Does it deliver a better margin?
C) Is it enough to regain lapsed coke users/non buyers?

I find Coke interesting because they're a beverage company that I would assume have quite a few brands playing in the same occasions?

Anyway I'm yet to see price realization on many supermarket categories so I guess this is a wait and see...under $8.50 though would have been a good pick up!