Coca Cola-Amatil has suffered a dual blow, losing a supply contract with Australian pizza giant Domino's to its bitter rival, Pepsi, and failing to get its latest no-sugar offering onto Woolworths' supermarket shelves.
Domino's has dumped Coca Cola-Amatil in favour of Pepsi/Schweppes as its soft drink supplier - a move Deutsche Bank analyst Michael Simotas estimates will reduce CCA's Australian drink volumes by about one million cases, or around three per cent.
"While some of the costs associated with servicing the Domino's account may be able to be removed, a three per cent volume hit is meaningful," Mr Simotas said in a note.
Domino's will switch to Pepsi from September, with the new contract to run for several years.
Coca-Cola Amatil shares closed down 31 cents, or 3.4 per cent, at $8.91 on Thursday, their lowest level since early June.
The loss of the Domino's contract comes as supermarket giant Woolworths confirmed it is not stocking the new Coca-Cola No Sugar.
Launched in Australia and New Zealand in June, Coca-Cola No Sugar will eventually replace Coke Zero but Woolworths insists its current range of soft drinks is enough.
Some 60 per cent of the soft drinks on supermarket shelves are marketed as diet, low sugar or no sugar products.
"We have taken the decision to not range this product at this time," a Woolworths spokesman said on Thursday.
"Our customers looking for a no-sugar or low-sugar cola option have ample choice already in the category, across a range of different pack sizes and formats."
A Coca Cola-Amatil spokeswoman said the No Sugar Coke will still be on thousands of supermarket and convenience store shelves, including at Coles.
"We're entirely confident that Coca-Cola No Sugar will be a huge success," she said.
Consumers are increasingly favouring healthier options like bottled still and carbonated water and soft drink sales growth in general has been slowing.
Market research firm IBISWorld estimates revenue growth for the sector to be just 0.2 per cent annually over the five years to 2017/18, at $4.2 billion.
"Changing consumer health trends have driven demand away from carbonated soft drinks, and towards bottled water and other beverages that are perceived as being healthier," IBISWorld said in a report.
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