The Coca-Cola Company
) recently entered into a partnership with California Pizza
Kitchen (CPK), a popular restaurant chain, to provide Coca-Cola
products in the latter's 202 restaurants across the U.S. Per this
multi-year product and marketing agreement, all California Pizza
Kitchen units will exclusively serve Coca-Cola products by Aug
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California Pizza Kitchen offers authentic California style
cuisine, which includes signature California-style hearth-baked
pizzas, creative salads, pastas, soups and sandwiches, all of
which can now be enjoyed with beverages from Coca Cola. The
beverages served will include Coca- Cola, Diet Coke, Coke Zero,
Sprite, juices, enhanced waters and energy drinks
Per the agreement, both the brands will also collaborate on
several promotional and marketing initiatives every year, which
is expected to further drive beverage consumption at all
The current agreement with California Pizza Kitchen will help
Coca-Cola tap the huge customer base of the restaurant company,
which is expected to boost its volumes. Coca-Cola as well as
other soft drink companies like
Dr Pepper Snapple Group Inc.
) have been seeing sluggish volume growth for their high calorie
soft drinks. Sales of these drinks are being hurt by changing
consumer preferences, increasing health consciousness, rising
obesity concerns, possible new taxes on sugar-sweetened beverages
and growing regulatory pressures. In fact, Coca-Cola witnessed a
mere 1% volume growth in the second quarter 2013, much worse than
last quarter's 4% growth.
Accordingly, Coca-Cola is trying to re-invigorate sales of its
soft drinks by conducting strong integrated marketing campaigns,
offering more choices to customers in package sizes, sweeteners
and beverages (including more low- and no-calorie selections) and
providing transparency in labeling.
Coca-Cola currently carries a Zacks Rank #4 (Sell). One beverage
company that is currently doing well is
Monster Beverage Corporation
) carrying a Zacks Rank #2 (Buy).