The juice on Eight o’clock

Two years after its purchase from Sugarlandia Corp., Eight o’clock has become The Coca-Cola Export Corp.’s core brand in the powdered juice category with a 24% volume sales growth year-to-date at 24% compared to last year. In contrast, the powdered juice industry has grown by about 10% on a three-year compounded rate.

"Growth has been propelled, in large part, by pushing the brand in the tertiary market or the sari-sari store, which many households see as an extension of their pantry and which offer absolute affordability," said portfolio director for non-carbonated beverages Diganta Dey. "At the tertiary level, households can buy a 45-gram pack for P8. This is what we call the litro pack, which is equivalent to five to six glasses of juice."

Through Philippine Beverage Partners, Inc., a sister company of local partner, San Miguel Corp., the company also produces Eight o’clock in 250- and 500-grams packs, which cater to households who do their weekly shopping in groceries and supermarkets.

Dominance

Coca-Cola Export currently has three brands in the powdered juice category. Aside from Eight o’clock, the company has Ponkana, which was also purchased from Sugarlandia, and Ice Cold Mix, which was acquired from La Tondena Distillers, Inc. (which has since been renamed Ginebra San Miguel, Inc.).

Largely because of these three brands, the company has been able to wrest corporate market leadership from Kraft Foods Phils.,Inc., which produces the country’s oldest and top-selling powdered drink, Tang. Combined, the two multinational companies control 95% of the powdered juice market, which, in turn, account for 75% of total juice sales estimated at 19 million cases or 108 million liters.

"The industry has seen an explosion of variety to meet the changing needs of consumers," said Dey. "While Ponkana has its ponkan orange variants, there is no duplication with Eight o’clock. For example, Eight o’clock’s orange flavor variant follows the Filipino taste profile, which is sweet."

Since 2002, Eight o’clock has introduced an average of one flavor a year. It currently has seven flavors, all of which carry the Sangkap Pinoy seal given by the Department of Health for products which meet minimum levels of Vitamin A, iron, and iodine needed for a child’s normal growth and development. The orange variant, however, remains the most popular, accounting for 48% of total sales.

Family

"Traditionally, powdered juice is consumed at home rather than outside the home. It is shared among family members rather than taken individually. For this reason, our advertising has been emotion-based, embracing the endearing quality of the Filipino mothers who prepare the powdered juice for her family–caring, nurturing, and always dependable," said Dey.

Outside the home, the brand has made its presence felt in all Philippine outlets of McDonald’s, where families also congregate.

This year, Coca-Cola Export is looking at Metro Manila to sustain the brand’s sales growth.

"We are already number one in Mindanao. Metro Manila is the area of opportunity for the moment. We have a brand that offers value for money in terms of good product quality, taste, and nutrition," said Dey.