The Coca-Cola brand opened the coffee shop brand extension significance

Inject Coca-Cola into Starbucks' coffee cup

Recently, Coca-Cola has made frequent moves in the expansion of the non-carbonated beverage market.

According to reports, Coca-Cola North America has already rented 4,000 square feet of shops in the Yorkville area of ​​Vancouver, Canada. If all goes well, the company’s first coffee shop will begin operations in the second half of this year, selling coffee products and a hot coffee beverage counter. At the same time, Coca-Cola North America is preparing to provide its customers with a new hot drink called "The Longshore", a hot, mixed drink of tea, latte and coffee. After the opening of the new store, "Dragonbank" will compete with several old coffee brands in the Canadian market.

Vancouver's Yorkville area is home to many coffee shops. There are five Starbucks coffee shops, a "Canadian Second Coffee" coffee shop, three Timothys coffee shops with Starbucks, two Tim Hortons coffee shops, and other specialty coffee shops. Coffee shops typically range in size from 500 square feet to 1,500 square feet, and Yorkville has the most expensive retail store in Canada. It seems that Coca-Cola has opened a 4,000-square-foot coffee shop here, which is indeed a big move. Some analysts said that this is Coca-Cola's challenge to Starbucks to compete for high-end customers.

In addition, Blak, the latest coffee-flavored soda drink from The Coca-Cola Company, was recently launched in the United States. To this end, Coca-Cola has spent billions of dollars on a promotional campaign. Blak is a Coca-Cola that blends natural flavors with the savory taste of coffee. It is about half as hot as traditional cola, and the product's customer base is mainly adult consumers.

Compared to the declining sales of carbonated beverages, coffee beverages belong to Coca-Cola's small increase in sales. Although the coffee market is nearly saturated, Coca-Cola still hopes to attract customers with a completely different concept and grab a big "cake" in the coffee beverage market.

It is too late for carbonated drinks

Currently, selling carbonated drinks in the United States is a daunting challenge. The overall sales of soft drinks in the United States fell for the first time in 20 years. Sales of regular Coca-Cola in the United States fell by 2%; sales of Diet Cola and Sprite were flat. In the whole year of 2005, Coke’s profits were basically flat, at US$4.87 billion.

Carbonated drinks have long been regarded as “junk drinks” and are one of the main causes of obesity. According to the US Centers for Disease Control and Prevention, 16% of children and teenagers in North America are overweight. Under the influence of the call for reducing childhood obesity, in August 2005, the American Beverage Association announced a non-mandatory agreement: the vending machines on the primary school campus only sell bottled water and 100% fruit juice; the vending machines in the junior high school campus are mainly Bottled water, pure juice, sports drinks, non-caloric beverages and low-calorie juice drinks are sold, while full-calorie beverages and juice drinks are sold only after school hours; the proportion of soft drinks in high school campuses is not more than 50%.

This happened in the “obesity gate” incident in the United States and Canada, which greatly impacted the carbonated beverage market in North America and forced Coca-Cola to further adjust its operating projects to accelerate the development of healthy non-carbonated beverage products.