‘Coke-bucha?’ Coca-Cola buys Australian kombucha in push to provide healthier drinks
AS Coke looks to offer healthier options to its customers, the company has revealed its latest focus is Australian-made fermented tea.
Drinks
Don't miss out on the headlines from Drinks. Followed categories will be added to My News.
FIRST cannabis, now kombucha. It’s been a big week for Coca-Cola as the company looks to expand its drink offerings — today announcing its latest focus is Australian-made.
The soft drink giant has announced it had acquired a South Australian kombucha tea maker in an effort to provide healthier options to customers.
The Willunga based drinks maker, Organic & Raw Trading Co, is Australia’s largest producer of organic kombucha drinks — which are currently sold under their MOJO branding.
MORE: South Australia’s famous kombucha
The company was co-founded by Anthony Crabb in 2010 and it has skyrocketed from there, gaining a strong celebrity following in the process.
Kombucha, a naturally fermented tea, is the fastest growing beverage category in Australia and it’s the first time Coke has acquired full ownership of a brand in the category.
“In just over eight years, Organic & Raw has gone from selling MOJO at a local farmers’ market to producing one of Australia’s leading organic kombucha brands,” said Vamsi Mohan, president of Coca-Cola Australia.
“Our goal is to bring MOJO to more Australians by making it available in more places across the country. Consumers will be able to see the same great MOJO products on more store shelves,” he said.
MOJO will join Coca-Cola Australia’s beverages portfolio which includes more than 165 products and 25 brands.
“The addition of MOJO kombucha fits perfectly with the growing popularity of organic, probiotic drinks,” Mr Mohan said.
MORE: Mojo kombucha upsizes to cater to growing thirst
Anthony Crabb and Organic & Raw’s sales and marketing director Andrew Buttery will remain in their roles. The company employs 61 staff.
It’s unclear what the terms of the deal are at this stage.
Mr Crabb told The Advertiser the company had been looking for the right partner to help with the next phase in growth.
“Coca-Cola wants to retain what we are doing. Our passion for what we do is just going to get supercharged now,” he said.
“This deal is good for South Australia and southern Adelaide because we are looking to build on what we have.”
MOJO beverages are currently sold in about 4000 stores across Australia.
Coke currently offers 165 products and 25 brands Australia-wide.
WHY DOES COKE WANT KOMBUCHA?
Consumers aren’t drinking as many sugary soft drinks as they used to.
To combat this, the world’s largest drinks company wants to diversity its portfolio and include healthier options, such as sparkling water and kombucha.
Mr Mohan said the consumer lean towards healthier options was a driving factor for MOJO’s growth.
“Australians are increasingly after great-tasting, low sugar drinks that deliver additional functional benefits, such as gut health,” he said.
“They also support sustainable packaging options, and MOJO uses clear glass bottles that can be recycled. MOJO will play an important part in helping Coca-Cola meet our commitment to reduce sugar by 20 per cent by 2025 and in meeting our sustainability commitments through providing recyclable packages.”
Recently Coke has been on a buy-up spree — they recently spent $US5.1B to acquire British coffee chain Costa.
They’ve also have a minority stake in US basketballer Kobe Bryant-backed sports drink BodyArmor.
Earlier this week Coke also revealed it was interested in the fast-growing cannabis drinks market.
— Additional reporting from The Advertiser’s Valerina Changarathil and Reuters.
Hidden tax to hit Aussies for 84th time
A hidden tax on a beloved Aussie staple will be upped for the 84th time since it was introduced – prompting industry groups to call for change.
‘Must be joking’: New Coca-Cola drink roasted
Just months after axing an unpopular new flavour, the fizzy drink brand unveiled its latest product – but many claim it is “yuck”.