Keurig Dr Pepper grows share for Keurig brews and Van Houtte in Canada
Beverage maker Keurig Dr Pepper is reporting that net sales in Q1 increased 3.4% to $3.5 billion. For its international market, which includes Canada, net sales for the first quarter increased 11.8% to $0.5 billion.
The maker of Keurig, 7Up Canada Dry, Clamato, Mott’s and Snapple is reporting a double digit marketing spend increase and market share growth in Canada for its Keurig brews and Van Houtte brands. Canadian coffee brand Kicking Horse is being added to its roster too.
The company announced a multi-year partnership with the Toronto Blue Jays as its on-premise beverages. Keurig Dr Pepper also reports that its nonalcoholic cocktail, Atypique, had share gains in Canada.
In today’s earnings call, incoming CEO Tim Cofer says there is “tremendous upside ahead” for the company.
The CPG unveiled a new proprietary single-serve coffee brewer system, “Brew n’ Chill” allowing for hot and cold beverage brewing and sustainably disposable K-pods. Beta testing is coming later this year. In other coffee news, Lavazza will go from partner to licensed brand.
Keurig Dr Pepper expects “an exciting brand activation slate,” Cofer says.
The company’s energy and sports hydration are doing well in the U.S. Cofer says innovation is key to its success, like its Canada Dry Fruitsplash launch in the United States, which is performing well and driving market share.
Keurig Dr Pepper has 28,000 employees globally and a portfolio of more than 125 owned, licensed and partner brands.
Nestlé sees a slump
Nestlé is promising to step up its North American “innovation intensity,” after a weak quarter which saw Coffee Mate slump.
The world’s biggest CPG company says total reported sales dropped by 5.9% internationally to CHF 22.1 billion (about $33 billion Canadian) in the first three months of 2024, compared to the same period the year before.
The maker of KitKat, Purina, Gerber and Lean Cuisine, is reporting North American organic growth was down 2.5%, driven by frozen and beverage. The company says the decline reflects soft consumer demand for frozen products and intense price competition, particularly in pizza and snacks, as well as the winding down of the frozen meals business in Canada, which is near completion.
Also in North America, the beverages category posted a sales decrease, as “robust growth” for its Starbucks and Nescafé was “more than offset by negative growth for Coffee Mate.”
However, by product category, Purina PetCare was the largest growth contributor, with broad-based demand, particularly in e-commerce. Fancy Feast, Friskies and Purina One all delivered strong growth. Water sales grew at a mid single-digit rate, with strong momentum for San Pellegrino and Acqua Panna.
Unilever tops sales forecasts to start 2024
Unilever topped Q1 sales forecasts, its quarterly financial report released on Thursday morning showed.
Its first quarter of 2024 was highlighted by underlying sales growing 4.4% and volume rising 2.2%, with all five business groups within the company reporting underlying sales growth, led by a continued strong performance from its Beauty & Wellbeing sector.
North America specifically delivered sales growth of 3.6% for the company, with positive volume growth at 1.4% driven by strong performances of Health & Wellbeing and Prestige Beauty.
Unilever CEO Hein Schumacher says the company’s improved volume growth was driven by its poewr brands, which saw underlying sales growth highlighted by strong performances for Dove, Knorr, Rexona and Sunsilk. He added that the company is gaining increased confidence in its ability to deliver sustained volume growth and positive mix as it accelerates increasing its gross margin.
With files from Andrew Jeffrey
