Coca-Cola in October will take an alcoholic drink nationwide in Japan as the global soft drink giant attempts to diversify its way out of the mature and crowded soda pop market with an “alcopop” offering.
Despite its globally strong brand, Coca-Cola is under pressure to diversify as energy drink makers and other beverage purveyors enter the soft drink market and as consumers vary their thirst-quenching preferences.
Soda pop represents about 70% of the Coca-Cola group’s global beverage sales by volume.
Coca-Cola is diversifying in other markets as well. In 2019, the company bought Britain’s largest chain of cafes for about $5 billion.
Two consumer trends are partially behind Coca-Cola’s weakening hold on the market. Soda pop is declining in popularity, and consumers are becoming more likely to head into convenience stores when they get thirsty rather than hit up vending machines, long a strong sales channel for Coca-Cola.
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