What Coca-Cola, L’Oreal Are Doing to Curb Share Loss to the Little Guys

 In International
Coca-Cola Co. is one of the few giants tracked by IRI and Boston Consulting Group that gained U.S. share in 2012. It did so in part with contributions from small brands like Fuze, Nos, Zico and Honest Tea. According to IRI, Honest Tea had sales of $76 million, while Zico reported sales of $36 million for the year ended Sept. 8. They’re part of the company’s Venturing and Emerging Brands group. Part investor, part incubator, the group is charged with identifying and developing the next billion-dollar brand.
None of those brands has gotten there yet, and only 3{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of the more than 3,000 beverage brands worldwide ever reach the $20 million in sales Coca-Cola refers to as "proof of concept." Still, the group, formed in 2007 several years after acquisitions of small brands Planet Java and Mad River fizzled, does appear to be helping Coca-Cola gain share as big peers mostly aren’t.
Similarly, L’Oréal, which also gained share in the U.S. last year, has battled incursions by smaller players in part by acquiring and successfully expanding them — or by mimicking their approach.  Ad Age – Read more…

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