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Capital allocation and route-to-market strategy for a western european launch

challenge.

The Coca-Cola Company was preparing to launch a new ready-to-drink (RTD) tea brand across Western Europe. The category had seen double-digit annual growth, but consumer expectations had shifted toward more natural, sustainably sourced products. Success depended on local relevance, cost-competitive production, and a fast-to-market execution model, while preserving global brand equity and margin structure. To meet those objectives, we had to answer three questions:

How do we prioritize markets for rollout across Europe?
What level of investment is required to localize production vs. centralize it?
Which route-to-market model supports both speed and margin?

approach.

Structuring the initiative in three workstreams: 1) Capital allocation and 2) go-to-market strategy, and 3) Launch economics.

Capital allocation
Modeling three production scenarios: centralized co-packing, hybrid bottling network, and localized filling lines. Benchmarking COGS, capex, and transportation costs across Western Europe.
Go-to-market strategy
Analyzing historical performance across Coca-Cola’s three dominant RTM models: bottler operated direct store delivery (DSD), third-party sales and logistics (3PL), and retail partnerships. Based on velocity and margin assumptions, a market prioritization matrix, balancing scale (Germany, France) with velocity potential (Netherlands, Nordics) was developed. Retail-specific assortment and pricing strategies were tailored for each format.
Launch economics
Integrating production costs, trade terms, A&P investments, and forecasted volume tiers into the P&L, allowing us to define margin profiles that were higher than comparable RTD products at launch.

results.

Generated strong returns on significant capital investments, utilizing a phased growth model.
Achieved high distribution at launch across multiple European markets, ensuring strong retail execution.
The product outperformed industry benchmarks in early-stage consumer adoption and trial.
Established a scalable blueprint for broader European rollout with clear visibility on early breakeven.

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