Coca-Cola is debuting two new Smartwater products — Smartwater Antioxidant and Smartwater Alkaline — exclusively on online bulk retailer Boxed.
The decision follows a report that Amazon, which sells a number of Smartwater products, is moving away from selling bulky, inexpensive items like bottled water that “Can’t Realize a Profit” — a category of products also known as “CRaP.”
“Amazon is not built to sell the low-margin CPG item,” Boxed CEO Chieh Huang told Business Insider.
Meanwhile, Boxed has become an expert on shipping inexpensive items like snacks and bottled water that Amazon may consider “CRaP” in bulk.
Two of the newest Smartwater products are debuting via online bulk retailer Boxed.
Smartwater owner Coca-Cola has partnered with Boxed to debut Smartwater Antioxidant and Smartwater Alkaline. From now until March, these products will only be available on Boxed, a five-year-old startup that has been called the “Costco for millennials.”
“It came together because of what we’re going at — being fast, being nimble, being easy to work with,” Boxed’s CEO and founder, Chieh Huang, told Business Insider on Monday. Boxed is providing Coca-Cola with sales insights before the drinks’ in-store debut as well as hosting a launch party for the new brands.
“When you sell stuff on Amazon, they do not do that for people,” Huang said. “They’re just like, sell it — if people buy it great, if people don’t, then tough luck. But, for us … our ability to highlight brands like that is why I think more and more of these folks are coming to us for these launches.”
Bottled water is a massive force in the beverage industry. In 2017, the carbonated-soft-drink category declined 1.3% by volume, while bottled water grew 6.2%, according to industry publication Beverage Digest. According to Coca-Cola, Smartwater is the largest premium bottled water brand, accounting for 25% of the market with $700 million in sales in 2017.
However, bottled water can create some problems for online retailers.
Amazon’s ‘CRaP’ can be a win for Boxed
In December, The Wall Street Journal reported that Amazon is trying to move away from selling products it describes as “Can’t Realize a Profit,” or “CRaP” for short. CRaP items include snacks, bottled water, and other beverages that typically cost customers less than $15 but are expensive to ship because they’re heavy or bulky.
Read more: Amazon reportedly wants to …read more
Source:: Business Insider