Recently, The Coca-Cola Company announced that its premium iced tea brand “Gold Peak” will launch ready to drink tea lattes and coffees in the first quarter of 2017. As the sales of its carbonated soft drinks decline, Coca Cola is working on the much needed diversification of its beverage portfolio. The ready to drink tea and coffee market is witnessing significant growth in the past few years. Experts predict that the RTD tea market will grow at a CAGR of 6% or better until 2018, with tea being the second most highly consumed beverage in the world, after water. We believe as consumer preferences shift to healthier beverage options, it is critical for Coca Cola to reduce revenue dependence on carbonated soft drinks. Expansion into the RTD tea and coffee market can drive profitability for the company in the long term.
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