Coca-Cola Icecek reports consolidated sales volume of 761.7 million unit cases in fiscal 2011, a 14.5% increase from year-ago period, aided by successful marketing campaigns, promotions, better route-to-market initiatives
January 13, 2012
– CCI’s consolidated sales volume increased by 14.5% to 761.7 million unit cases (*) in FY11, up from 665.4 million unit cases in FY10. International operations constituted 28.2% of total volume, up from 25.7% in FY10.
Fourth quarter 2011 consolidated sales volume increased by 8.0% to 140.6 million unit cases up from 130.2 million unit cases in 4Q10.
Consolidated sales volume increased by 14.5% in 2011 and reached 761.7 million unit cases. International operations accounted for 28.2% of total sales volume compared to 25.7% in 2010. All categories posted strong volume growth aided by successful marketing campaigns, promotions and better route-to-market (RTM) initiatives both in Turkey and in International operations in spite of a high base in the second half of the year.
The sparkling category advanced at low teens thanks to growth across all key markets and on the back of portfolio expansion through new product and package launches, successful
occasion based marketing and promotions as well as improved route to market initiatives in 2011. The still category continued to grow at over 20% in FY11 driven by strong water, juice and ice tea sales both in Turkey and in international markets. The tea business in Turkey maintained its double digit growth in 2011. In 4Q2011, consolidated sales volume was up by 8.0% to 140.6 million unit cases despite below average weather temperatures. The sparkling category, in the last quarter, posted mid-single digit growth while still beverages grew above 15%. The tea category grew at around mid-single digits in the fourth quarter.
Turkey operations’ sales volume increased by 10.6% and reached 546.8 million unit cases in 2011 and all categories posted growth. Channel and category based marketing activities,
increased cold availability and successful customer segmentation assisted this growth.
The sparkling beverage category posted close to mid-single digits growth in 2011 thanks to occasion based marketing activities and promotions including under the cap, Ramadan
promotions, “Fanta Youth Festival” and portfolio expansion through affordable packaging, consequently delivering in market share expansion in the sparkling category for the whole year.
The still beverage category grew above 20% in 2011 with the help of ca 30% growth in the water category and ca 20% growth in the juice category, supported by the launch of Cappy Pulpy and, relaunch of “Ramazan Şerbeti” during the Ramadan period and which had a strong consumer reception.
The tea category continued to perform very strongly, growing at above 20% on the back of new package and flavor launches as well as lower weather temperatures during the second half of 2011.
In 4Q11, Turkey sales volume reached 96.9 million unit cases, registering 1.4% growth. The sparkling beverage sales in Turkey came down by around low single digits due to below
average weather temperatures throughout the quarter compared to the historical average coupled with the high base in the last quarter of 2010. Still beverage volume increased by about 20% thanks to strong growth in juice and water segments.
International sales volume increased by 25.7% to 215.0 million unit cases in 2011, driven by the strong volume growth in Central Asia, Iraq and Pakistan. In 2011, Central Asia posted close to 20% growth. Kazakhstan’s volume in grew at above 25% as a result of successful route-to-market executions and continued customer customization of on-premise channel. Azerbaijan sales volume posted growth albeit at single digits in 2011 despite the slow economic growth and the strong base effect of 2010, assisted by accelerated cooler investment, focus on execution fundamentals together with strengthened RTM capability.
Pakistan volume grew at high-teens for the full year thanks to an increased portfolio availability and market penetration, pre-sell system expansion as well as the low base in 2010 especially in the third quarter of 2010 due to unprecedented floods in the country. Iraq volume grew at above 25% on a like-for-like basis thanks to marketing campaigns, regional RTM improvements. Iraq’s share in international operations increased from 3.4% to 10.9% due to full consolidation of the operations starting from March 2011. Volumes in International operations reached 43.8 million unit cases in 4Q11, registering an increase of 26.4% over 4Q10. New Year campaigns, expanded route to market initiatives and promotion activities across all international operations contributed to this growth.
Kazakhstan operations sustained strong growth momentum, delivering close to 20% growth in 4Q11 helped by segmented channel activation and improved market place execution together with a successful New Year campaign including under the cap promotions. Sales volume in Azerbaijan came down by mid-single digits due to unfavorable weather conditions during 4Q11, which was the coldest quarter in the last 50 years. Increased market penetration via cooler investments, better distributor system and lower base in October 2010 resulted in close to 25% growth in Pakistan in 4Q11. In 4Q11, Iraq operations grew above 25% thanks to successful promotions activities.
Coca-Cola İçecek (CCI) is the 6th largest bottler in the Coca-Cola System in terms of sales volume. CCI’s core business is to produce, sell and distribute sparkling and still beverages of
The Coca-Cola Company (TCCC). CCI employs close to 9,000 people and has operations in Turkey, Pakistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Turkmenistan, Jordan, Iraq and Syria
as well as exports to Tajikistan.
CCI has a total of 20 plants and offers a wide range of beverages to a consumer base of more than 360 million people. In addition to sparkling beverages, the product portfolio includes juices, waters, sports and energy drinks, tea and iced teas.
CCI’s shares are traded on the Istanbul Stock Exchange under the CCOLA.IS ticker.