Marketplace Performance Awards

Schweppes Egypt - Premiumization

Classified - Confidential
INTRODUCTION: Schweppes Egypt
ELEVATOR PITCH:
This is the story of the #1 Market for Schweppes™ in terms of sales GLOBALLY in 2021…
Schweppes Egypt
This is how we converted the slowdown to growth and then accelerated that growth to unprecedented levels. This was done through an integrated plan executed
seamlessly that covers premium pricing coupled with brand equity building and portfolio innovations on a strong commercial execution activities from sales force
engagement to in outlet execution

TEAM: SHORT BACKGROUND CORE METRICS FOR THE CASE:

Operating Unit: (MARKET/CHANNEL/CUSTOMER ETC) OVERVIEW:
Hazem El Azhary +45%
Malak Mohsen Sch NSR/UC vs. core

Bottler:
Ahmed Niazi
Nader Haggar
Amr El Tayeb
Country:
Karim Abdelmeguid
Award Category:
Premiumization
Key Contact:
Keroloss Emile keemile@coca-cola.com

Classified - Confidential
 WHAT DOES SCHWEPPES LOOK LIKE IN EGYPT?
BRAND VARIANTS SPLIT FLAVORS SPLIT IC/FC MIX
Schweppes is the only brand offering
50.3% 47.8% 0.6% 1.3% Pomegranate, Lemon Mint, & Tangerine
Flavors in the Egyptian SSD Market.
52%

DIFFERENTIATED NON-ALCOHOLIC NON-ALCOHOLIC TABLE WATERS 48%

WITH PULP MALTS PLAIN MALT (MIXERS)

250ml NRB 250ml NRB

250ml CANS 250ml NRB
42.8% 34.9% 6.9% 8.5% 4.9% 0.6% 0.7% 0.6%
300ml CAN 300ml CAN
1L PET G. PINEAPPLE POMEGRANATE TANGERINE LEMON/MINT G. PEACH PLAIN SODA TONIC
1L PET, 1.75L PET 1L PET, 1.75L PET IC FC

*Updated as of closing 2021

NSR
179 M

+39% VS LY

+71% VS ‘19

Classified - Confidential
SCHWEPPES HISTORY IN EGYPT
2009: 1st year to acquire Schweppes.
2010: Launched flavored malt.
2011-2013: Slow steady growth.
2014/2015: We had our 1st strong growth with
(+66% Vs. PY) because it was a conscious
decision to focus on the brand

Y2009 Y2010 Y2011 Y2012 Y2013 Y2014 Y2015 Y2016

2014/15 GROWTH WAVE ENABELRS

NEW NEW ENHANCED SUPPORTED DME &
EXCITING PACKAGING “PULP” GOLD SYSTEM
FLAVORS VIS MESSAGE RANGE FOCUS!

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 WHAT BUSINESS CHALLENGES HAVE WE FACED?
H2 2016 – H1 2017 PRICE INCREASE CONSUMERS
MACRO ECONOMIC CRISIS ON OUR MAIN PACK LEFT SCHWEPPES
Schweppes Pricing (EGP per Can)
EGP INFLATION CONSUMERS
DEVALUATION RATES NOT SPENDING 24.1
5 22.9
-130% +26% 77%
17.2

OUR BUSINESS SUFFERED

WE HAD TO MAKE TOUGH CHOICES 4 84%
3.5 of Vol.
-30%

Sep Oct Nov Dec Jan Feb Mar Apr

2016 2017 2015 2016 2017

IN LATE 2016 WE WERE HIT HARD AS A RESULT OF THE ECONOMIC CRISIS IN EGYPT WITH THE EGP DEVALUATION TO THE USD FORCING US
TO PRICE UP OUR CANS (WHICH WAS PRETTY MUCH THE MAIN PACK WE OFFERED OUR CONSUMERS), LEADING US TO -30% VS PY IN 2017.
Classified - Confidential
 Premium, to make And differentiated But still Affordable, Extracts Value to Compliments Portfolio Scalable and
them feel special mainstream world due to economy make up for loss (positive cannibalization) Sustainable

Amidst a national depression, & people’s lives being affected especially the young adults & adults, there was a need for people to find
something that felt/looked premium, but was still affordable, AND the company needed to extract value, through something that would
complement the portfolio instead of competing with our other brands, and that could also be scalable & most importantly sustainable.
Classified - Confidential
 IT WAS IMPERATIVE TO RECONSTRUCT THE BRAND
TO GIVE SCHWEPPES A CHANCE TO BECOME THE SOLUTION
01 02 03
REBUILD THE PORTFOLIO REVAMP BRAND IMAGE REPOSITION THE BRAND
OFFER A RELEVANT PACK PRICE LINE-UP PREMIUMIZE THE VIS TO JUSTIFY PRICE TO REKINDLE THE CONSUMER CONNECTION

- Launched new 1L
DECREASE CAN PET (MS imp. For
DEPENDENCY Egypt)
AMPLIFY BRAND
+83% OF PORTFOLIO
- Short term launch THE EDGE
TO of SSPET
FROM
44% - Drove distribution
of NRGB HOW DO YOU GET CHARACTER?
*Cans still grow +22% vs PY
BY GOING THROUGH LIFE EXPERIENCES

DECREASE POMEG. - Launched new

TO & WHO BETTER TO CLAIM YEARS OF LIFE
DEPENDENCY Lemon Mint flavor EXPERIENCE THAN A 235 YEAR OLD BRAND
+80% OF PORTFOLIO - Prioritized Comms
TO of Tangerine
Thus, our new CCI was born:

68% - Drove Tangerine

Distribution
EXPERIENCED SINCE 1783…
#ExperienceSays
*Pomeg. still grows +39% vs PY

Classified - Confidential
 2021 SCHWEPPES PILLARS OF SUCCESS
BRAND PORTOFOLIO SHOPPER CUSTOMER SALES
EQUITY OBPPC SUPPORT OFFERS FORCE

Hammering on strong Healthy portfolio offering Dedicated sales

1000+ Created a new
brand heritage mix between MS & SS force incentive
(since 1873) Dedicated approach for
(52% & 48%) customer promotions programs
coolers/cooler doors
Strong visibility drive by introducing bundle focusing on
Focusing on the "me Premium pricing vs core
POSM & promotions to DSD & volume mix and
moment" indulgence
Permanent displays WS customers with drop size
New 1.75L PACK, to
Use of elegant penetrate AH in key chains & core SSD’s aiming to
local celebrities consumption with family outlets increase drop size,
with an incremental 2.6 SOVI and block
Solid TV & digital MUC competition
support (2 copies)
Cans &1L PET are the
BGS score: main packs that drove
P7d 48% +4 pts our growth by +22% &
Premium brand 55% +6 +73% Vs. PY respectively

Classified - Confidential
 17% of total volume
BUT 30% of NSR

52.3

32
34.4
X3
24.1 Volume
22.9 22.8

17.2
13.8
9.6 10.6
9.2
7.4
3.2

SCHWEPPES YEARLY VOL. (MUCS)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

AFFINITY REACHED A BALANCED PACK MIX

3%
7% 8% 8% 8%
Fav Brand 22 +2 24

Brand I Love 39 +5 44 34% 36% 39%

48%

CONSUMPTION
Daily 3 +0 3 56% 55% 53%
44%
Wk+ 44 +4.0 48

*BGS: 2020 vs 2021

2018 2019 2020 2021
Cans MSPET - Confidential
Classified SSNRGB SSPET
Focusing on NRGB as an
environment friendly pack

While growing the whole portfolio,

Sustainability was a key focus in
building Schweppes. NRGB was
prioritized across all support and
communication elements to drive
the brand through the best possible
green solution
Classified - Confidential