ATLANTA — Coke Zero is increasingly finding a spot at food-service outlets, giving another boost to the no-calorie soft drink and furthering Coca-Cola Co.’s three-cola strategy built around Coca-Cola Classic, Diet Coke and Coke Zero.
Coke Zero is at the fountains of almost 14,000 food-service outlets, tripling its availability in less than two years, according to the company.
Introduced in 2005, Coke Zero was at the fountain in about 4,500 outlets by the end of 2006 and about 10,000 by the end of 2007.
Coke Zero also is now offered in another 27,000 food-service outlets in bottles. Coke Zero is being rolled out nationally at a host of chains, including Subway, Chick-fil-A, Outback Steakhouse, Papa John’s, Zaxby’s and Shane’s Rib Shack.
Coke would not say whether Coke Zero will show up nationwide at McDonald’s or Burger King, the top two U.S. food-service chains in terms of annual sales. But it is being tested in some of the larger quick-service restaurants, said Coke spokesman Scott Williamson.
Coke is not having to remove a drink from the fountains to make way for Coke Zero, Williamson said. In most cases, it’s replacing a beverage’s second valve on a fountain set, he said.
Food-service outlets are important for Coke Zero because they give people a chance to try the product for the first time, he said. “We continue to believe the key for Coke Zero is to get as many people as possible to try it,” Williamson said.
Coke Zero, which comes in black packaging, has been a fast-rising star in the Coke portfolio. It’s become part of Coke’s “Red-Black-Silver” strategy aimed at spurring sales for Coke’s core carbonated soft-drink brand.
Coke Zero’s addition to fountains could help drive volume, directly and indirectly, for the beverage, said John Sicher, editor and publisher of Beverage Digest. Fountains account for about 23 percent of all U.S. soft-drink sales, according to Beverage Digest.
Coke is the largest player with about 70 percent of the U.S. fountain business.
As more people try Coke Zero at the fountains, they also could buy it at other outlets, such as grocery stores, Sicher said. The question is whether Coke Zero is bringing new business to Coke at the fountains or simply replacing sales that would have gone to another Coke soft-drink, he said.
“It’s terrific for Coke Zero to get this fountain presence,” Sicher said. “The issue is how much will be incremental and how much will cannibalize Coke Classic or Diet Coke.”
