Coca-Cola attributes Australian growth to success of ad campaign and energy brand

Coca-Cola Amatil has reported a 16.4 per cent rise in full year earnings to $449m, with the drinks company claiming it saw good growth in Australia following a successful summer ad campaign and growth in its energy drink brand, Mother.  

Overall the company said it achieved record volume and profit  in Indonesia and Papua New Guinea, with Earnings Before Interest and Taxes (EBIT) increasing by 22.1% to $61.8m. Revenue also grew 21.9 per cent and volume grew 9.2 per cent.

In Australia, EBIT increased 9.5 per cent to $549.9m, while volume grew 3.3 per cent. Coke attributed the performance to favourable summer weather – which soft drink brands heavily rely on to drive sales – together with a successful advertising campaign in December.

The company said it also benefited from increased investment in cold drink coolers. Its trademark Coke products, which comprise over 50 per cent of Australia’s total non-alcoholic ready-to-drink beverage volume, saw volume growth of over 3 per cent.

Its energy drink brand, Mother, more than doubled in size owing to strong single-serve growth and the launch of Mother Surge in July.

Meanwhile, it also launched Goulburn Valley flavoured milk on the east coast in September, and including Goulburn Valley fruit juice, revenue from the overall brand portfolio increased by 8 per cent to just over $72m.

Host was recently warded the consolidated advertising account for Goulburn Valley.

Coke’s cost savings from its Project Zero initiative also delivered 22 per cent of the Australian operation’s earnings growth.

Coke launched a summer campaign in Australia as part of its global Open Happiness brand positioning. The TV ad has been supported by experiential and digital activity.


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