Coca-Cola: Gold Peak tea ‘rapidly on its way to becoming a $1bn brand’

Coca-Cola’s ready-to-drink iced tea brand Gold Peak is “rapidly on its way to becoming a $1bn brand”, revealed CEO Muhtar Kent in an earnings call yesterday.

Gold Peak, which was only launched in 2006, “has grown by double digits for 24 consecutive quarters and is rapidly on its way to becoming a $1bn brand”, Kent told analysts after posting a 4% rise in global volumes in the first quarter of 2013.

North America and Europe

In North America, volumes rose 1%, with a 6% rise in still beverages offsetting a 1% drop in sparkling, where sales were impacted in part by “lousy weather, payroll tax and the price of gasoline”, said CFO Gary Fayard.

While the economic environment in Europe remains uncertain, there were "pockets of growth" in Germany, Scandinavia and Great Britain, such that overall volume growth in Europe was flat, he said.

Latin America, India, China, Eurasia and Africa   

Volumes in Eurasia and Africa rose in the double digits; Latin America was up a 4%; India generated high single-digit volume growth, and China delivered 1% volume growth, driven by strong sales of juices and juice drinks.

Click here to read about Coca-Cola's plans to hand back some of its US distribution network to independent bottlers on our sister site BeverageDaily.com.