By
In February 2018, Coca-Cola Beverages Uganda (CCBU) announced an expansion of their product line with the launch of Fuze Tea, a unique blend of tea extract and fruit flavors that ensures a delightful fusion of tea, fruit, herbs, and other natural ingredients.
Fuze Tea is one of the 20 billion-dollar brands of the Coca-Cola Company in revenue terms.
It comes in two flavors: peach and apple and lemongrass, meant to appeal to busy consumers looking for a refreshing and delicious drink while they entertain, socialize, or work. Speaking at the product launch, Coca-Cola Uganda Brand Manager, Miriam Limo, said: “Consumers’ tastes have evolved, and so have Coca-Cola’s offerings. The launch of Fuze tea ‘‘is a testament to the company’s innovation agenda.”
Fuze Tea is available in 400 ml bottles at a price of Ugx. 2,000.
10 months after the launch, market intelligence reports indicate that the brand is struggling and reportedly failing to take off.
What went wrong?
Global soda sales, including in Uganda, are declining as competition from lower-priced brands such as Riham, Kirisoda and bottled water continues to intensify. For example, Kiri soda and Reham soda are said to have a market share of more than 5%.
As a strategy, Coca-Cola decided to launch a new “unique” brand targeting new markets. One such brand he has is his Fuze tea, aimed primarily at the middle class. But the middle class in Uganda is different and Coca-Cola Beverages Uganda has had to deal with that.
When I think of tea in Uganda, I always think of something warm. How many Ugandans have tried cold tea? Probably very few.
Introducing them to cold or fused tea is like a complete culture change. A clearly thought out strategy, a unique strategy that transcends common sense would have been necessary.
In Kenya, people take soda at room temperature. In Uganda, people are used to drinking soda when it is cold. In Kenya, an attendant can bring you a soda from behind when it is open. In Uganda, people want to open the soda when they see it. All this points to one thing: understanding consumer behavior seems to be a problem for Coca-Cola Beverages Uganda.
Early this year [2018], Coca-Cola Company had to spend $1 million rebranding Iced Tea, which sounds like a vulgar word for genitals in Europe. How much did Coca-Cola Beverages Uganda spend to market Fuze Tea in Uganda?
We all know the capacity Coca-Cola has to promote its products
It is evident that Coca-Cola Beverages Uganda did not give Fuze Tea enough publicity and marketing support. They recently woke up to start a massive radio campaign to promote the struggling brand.
Perhaps Coca-Cola Beverages Uganda needed to have undertaken adequate activations in supermarkets and high-end areas—areas frequented by the middle class.
Fuse tea is for the middle class. However, its marketing and promotional methods are flawed.
In Kiwatule-Ntinda, there is a large billboard advertising Fuze tea. However, Coca-Cola Beverages Uganda forgot that the middle class leaves their homes very early in the morning, rushing to work with little or no time to look at or read the billboards hanging up there. Billboard advertising is an old-fashioned way of promoting businesses. It cannot work in this modern day and age. Could this explain why the product is struggling?
What next for Fuze Tea?
Market gurus are of the view that Coca-Cola Beverages Uganda needs to understand what the consumer in Uganda wants. ‘‘Do you think we want a tea that is cold? What is it that Coca-Cola Beverages Uganda has done to mobilize the middle class to start taking Fuze tea?’’ says a seasoned marketing guru who worked for a consumer products company.
Coca-Cola Beverages Uganda doesn’t seem to have a great marketing innovation team. They thought people would drink fuse tea because of the Coca-Cola brand, but that wasn’t the case. The middle class is becoming more health conscious. They prefer natural things.
According to CSPI, the publishers of Nutrition Action Healthlette, some Fuze drinks are sweetened with crystalline fructose, which researchers believe is a significant contributor to obesity.
Some Fuze drinks actually have up to 25 grams of sugar per 8 ounces, making those Fuzes about as caloric as typical sodas.
read: Is Wave mobile money currently just surviving?
Some have the artificial sweeteners sucralose and/or acesulfame potassium. Some have skim milk; some have 1 percent to 5 percent fruit juice or purees; all have some vitamins or minerals in various amounts; some have herbs such as ginseng or guarana.
also read: Is MTN Uganda on the verge of becoming a bank? Are Ugandan banks ready for this monster?
Coca-Cola purchased Fuze in 2007 as part of its campaign to sell drinks with a more healthful aura.
About the author: The writer is a marketing and distribution expert. He sees business in everything. He loves writing business news, reviews, and analyses. Reach him on or Twitter: @mkaketo LinkedIn: Moses Kaketo
read: Shell Vs TOTAL: who is the Goliath?
