Towards the middle of 2014, Heineken USA rolled out 8.5 fl. oz slim can packs for its flagship beer, citing triple-digit sales growth in this package size in prior years. At the end of February this year, Heineken USA announces it is doubling its investment in the slim-can segment in 2015.
Coca-Cola’s little $2 slim-cans launched in Australia in August, and in November the slim-can options were expanded into a rainbow-coloured range for core Coke - pink, purple, blue, green and orange.
“Sales of small can offerings grew more than 350% last year [2014], delivering incremental volume and profit to retailers across all channels,” stated Jonathan Simpson, director of commercial marketing for Heineken USA, in a statement.
Slim cans currently account for about 15% of all available can formats in Europe right now. Energy drinks account for the largest share at around 70%. But brands like Nexba, Perrier, Schweppes, Appletiser, Bud Light, Bundaberg ginger beer, Pepsi and Arizona iced teas are enthusiastic uptakers.
“Although slim cans have been around for several years now, they are still viewed as a fresh and modern alternative to the standard can,” said Thomas Haensch, vice president sales, marketing and innovations at Ball Packaging Europe.
What’s going on?
Slim is in for several reasons.
1. Slim cans help people to lower their intake and keep guilt in check. They make people feel better about drinking soft drinks and beer, in particular, because people can applaud themselves for drinking less (notably sugar, alcohol and calories).
According to the International Food Information Council Foundation's 2014 Food & Health Survey, 81% of US consumers were either "somewhat likely" or "very likely" to eat smaller portions to manage weight compared to 60% who expressed support for substituting lower calorie foods for full calorie alternatives.
2. The shape of slim cans is slim. That the visual message is “weight control” can’t be overlooked
3. Slim cans define the functional drink category. They began their boom as the can of choice for energy drinks. New brands, especially natural soft drinks, iced teas and other drinks with health and well-being benefits, are packaging in slim cans, which also helps manage the dosage of key nutrients.
4. Slim cans fit on-the-go needs. They are lighter and easier to carry and there’s less chance of product waste.
5. Slim cans offer a way out of profit decline for soft drink and beer manufacturers.
Let’s use Coca-Cola as an example. In November, North America president Sandy Douglas stated that more focus on lifting "price per occasion" and less on simply growing volume could unlock future revenue growth. The "price per occasion" of a 12 fl. oz can of Coca-Cola, she stated, was US31 cents in 2014. The “price per occasion” 7.5 fl. oz mini-can was US 40 cents over the same period. The slim-can gave Coca-Cola 5.3 cents per fluid ounce versus around 2.5 cents per fluid ounce for the 12 fl. oz can.
6. Celebrating or rewarding oneself with little treats is common behaviour. This insight was, in fact, the underpinning of Coke’s little can advertising campaign by Ogilvy & Mather in Germany. The ad agency placed cute waist-high mini-kiosks decked out with tiny Coca-Cola vending machines in five German cities in 2014. The machines sold mini-cans of Coke while the manned kiosks celebrated everything small by selling miniature versions of other products. The tiny kiosks were hugely successful, selling an average of 380 mini-cans of Coke a day, which was nearly triple the turnover of a typical Coke vending machine.
