Coca-Cola + Bluetooth = Connected, Customizable Soda Machines

While we applaud Coca-Cola (KO) for embracing technology to connect with consumers while enabling them to customize their soda beverage of choice, the larger question to us is how does this fit with the shifting consumer preference for healthy food, snacks and drinks? In many ways it appears that Coca-Cola is looking to extend the life of its high margin sugary/diet beverage business that it has even though that case volume, even for Diet Coke and other diet beverages, have been under pressure. With PepsiCo’s (PEP) launch of its own flavored setzer brand in a bid to catch National Beverage’s (FIZZ) La Croix brand, we’re wondering if Coke has identified such an opportunity for a Freestyle machine…. perhaps the 9200 model?

 

Coca-Cola is unveiling a new fountain drink machine this weekend that lets you use Bluetooth technology to prepare your drink precisely the way you want it with a few taps on your smartphone. The upgraded machine, called the Freestyle 9100, also has some new, but not yet activated, features Coca-Cola expects to need in the future. With the activation of a microphone, for instance, it could mix drinks from voice commands.

While a Coke dispenser might seem like a strange place to find innovation, it’s the kind of move that could give the Atlanta-based soft-drink giant an advantage in the hyper-competitive beverage market. Smartphones make sense for drink ordering, because they will not only allow you to order exact percentages of different mixtures or flavor addition but also remember your preference for next time.

Empowering people to customize their creations — in this case, over ice — helps companies build long-lasting relationships with them, according to consumer behavior experts. That translates into more frequent and larger purchases.

“A greater level of customization really allows companies to connect with consumers, especially when it’s what they’re looking for and making them feel special,” said Charles Lindsey, an associate professor of marketing at the University at Buffalo.

Source: Coca-Cola, Bluetooth let you make personalized drinks

Source: Coca-Cola, Bluetooth let you make personalized drinks

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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