Coca-Cola has entered the fresh fruit market through its licensing deal with Minute Maid and Simply. The brands’ logos will help Coca-Cola implement produce distributed by Frutura’s Dayka & Hackett to its slate of products. The financial terms of the deal were not disclosed.
“Our company is committed to serving the consumer with superior products at every part of their day,” Kayla Carlucci, associate licensing manager with Coca-Cola, said in a statement. “When we consider licensing one of our brands, the quality of the product that will bear our name is paramount as is the quality control the licensee exercises at every step along the supply chain.”
Simply Select’s logo will be added to D&H fresh citrus, and Minute Maid will be combined with D&H fresh citrus and grapes in Japan. Coca-Cola’s Simply Select products will begin rolling out at retail stores before July, followed by Minute Maid.
“Once an afterthought for many multi-billion-dollar food and beverage manufacturers, brand licensing deals are rapidly evolving into a lucrative source of revenue for CPGs aiming to grow their business, build equity and maintain or expand a product’s relevancy,” a recent Food Dive report states.
“Beyond its iconic products, brands in Coca-Cola’s expansive portfolio have made their way into non-beverage offerings such as candy, clothing, drinkware, home decor and apparel,” a recent Food Dive report states. “But the move into fresh fruit is an entirely new way to expand the reach of the valuable trademarks.”
The products promoted as a result of this collaboration are an alternative to brands with sugar-riddled refreshments. The catalog expansion is the first of its kind to be accepted by the global beverage company within the fresh produce category. It is expected to boost Coca-Cola’s original juice offering sales.
“A shopper might see a bag of grapes with the Minute Maid logo or a lemon with Simply and decide to purchase one of those juices later on simply because they saw the fruit,” a recent press release states. “The connection with fruit also helps elevate the healthier perception a consumer might have of these Coca-Cola products.”
Despite confiding in the profitable potential of the deal and the strong position its partners hold within the market, the company also revealed concerns regarding potential recalls and maintaining the quality of the product.
“Partnering with the iconic Coca-Cola Company, and their globally recognized and respected brands, is a transformative moment for our company and for Frutura,” CEO of Dayka & Hackett, Tim Dayka, who crafted the licensing agreement on Frutura’s behalf. “This will allow us to increase our market penetration in a meaningful way, as these brands resonate so strongly with the discriminating consumer.”