Coca-Cola Europacific Partners Germany has reported year-on-year sales growth of 12.5% in its 2023 financial year.
CCEP Germany is responsible for the bottling, sales and distribution of Coca-Cola branded products in the country.
It is also the highest sales growth in 2023 compared to the previous year among consumer goods manufacturers in Germany, the company stated citing data from Nielsen.
John Galvin, CEO of CCEP Germany stated, “We can look back on a very good year in Germany, in which we significantly expanded the range of our popular drinks, especially in grocery stores, discounters and gas stations.
“With our results in Germany, we contribute to the successful overall results of Coca-Cola Europacific Partners. [...] Branded products like Coca-Cola drinks bring people into the market, ensure sales and margins for the retailer and, not least in times of crisis, brands are also an anchor of trust.”
Consumer Trends
Sugar-free and reduced-sugar drinks were particularly popular last year, with one in three Cokes sold being sugar-free variants Coca-Cola Zero or Coca-Cola light.
Around three quarters of the new products for the German market in the past three years were sugar-free or reduced in sugar, CCEP noted.
Iced teas, sports drinks and energy drinks were growth drivers in the non-alcoholic drinks category, with Fuze Tea, Powerade and Monster witnessing double-digit increase in sales and revenue last year.
Coca-Cola has been manufacturing soft drinks in Germany since 1929 and operates 27 locations, including the 14 production plants, across various regions of the country.
It employs around 6,500 people in Germany.
Last year, the bottler invested €170 million into its production and logistics network.
This year, it has earmarked around €165 million for various initiatives, including a new glass reusable line at the production site in Lüneburg and restarting a PET reusable line at the Bad Neuenahr facility.
Outlook
CCEP cautioned that the economic environment 'remains challenging' but it expects improvement in consumer sentiment over the course of the year with increasing real wages and falling inflation.
In 2024, Coca-Cola will launch new products onto the market, focusing mostly on sugar-free and reduced sugar items, among others.
Galvin added, “Ultimately, in 2024 we want to take the next steps towards our goal of being climate neutral by 2040. To this end, we are continuing to invest – including in digital solutions, in our reusable filling, in more recycled material for our disposable PET bottles, in shifting beverage transport to rail and in water and energy saving measures at our 14 regional production sites.”
