During Coca-Cola Amatil’s (ASX:CCL) annual general meeting on Tuesday, Chief Executive Officer Alison Watkins assured investors that the company was on track to post strong earnings in the short-term. During her first annual general meeting as Chief Executive, Ms. Watkins said the new Coke Life brand was now the company’s second best selling product in the 1.25 litre and 250ml sizes. The new Coke product offers the same taste of the original but with 35 per cent less sugar.
Ms. Watkins noted that the healthier beverage, the first new Coke product in a decade, has gained more than 50 per cent customer penetration since its launch. She is projecting that Coke Life could have the potential to represent 1 to 2 per cent of total Coke brands in Australia. Coke Life has already been launched in the UK and is showing promise. Over the next six to eight weeks, Coca-Cola Amatil will need to watch repeat purchase patterns to see if the product can be truly successful in Australia, she noted.
During the meeting in Sydney, Chief Executive Watkins said she was continuing a restructuring project that will see $100m in costs removed from the company over the next 3 years. She also confirmed the company’s guidance that was given last October when she presented her strategic plan to target mid single-digit growth in earnings per share over the next few years. Shares of CCL are up 36c, or 3.67 per cent, at $10.16 per share around 1:44pm on Tuesday. CCL has advanced 11.39 per cent in the last 12 months and 9.12 per cent so far this year.