Coke Invests $70 Million in New Calgary Facility

Candy Can soft drink competitor also announces launch in Canada

An employee arranges bottles of Coca-Cola at a store in Alexandria, Va., on Oct. 16, 2012. Kevin Lamarque/Reuters

Coca-Cola is building a new $70-million facility in northeast Calgary, and Premier Danielle Smith took advantage of the news to remind businesses that Alberta is “Canada’s lowest tax jurisdiction.”

In a July 10 social media post, Ms. Smith thanked Coca-Cola Canada Bottling Limited (Coke) for the “vote of confidence.”

“Alberta is Canada’s lowest tax jurisdiction, and we continue to see more and more investment, leading to job opportunities and economic prosperity for our people. Alberta is calling… make the move!” she said.

Meanwhile, a new soft drink is set to enter the Canadian market possibly competing with Coca-Cola and promising to entice candy lovers with a fizzy drink with zero sugar. Candy Can, a sugar-free soft drink that originated in the Netherlands, announced its official launch in Canada on July 5.

The brand promises that “candy lovers from coast to coast can now enjoy the taste of their favourite sweets in sparkling beverage form with an inaugural release of four popular flavours including Birthday Cake, Bubble Gum, Cotton Candy, and Rocket Ice Lolly.”

Candy Can is the creation of Sander de Jonge, founder of Charlie’s Organics, and the company said it “aims to revolutionize the beverage industry by providing nostalgic experiences.”

According to the company, Candy Can is also vegan, keto-friendly, gluten-free, BPA-free, and caffeine-free.

The sparkling marshmallow flavour has the following ingredients listed: Carbonated water, acidifier: citric acid, stabiliser: gum acacia, ester gum; flavouring, sweeteners: acesulfame K, sucralose; antioxidant: ascorbic acid; and colour: Cu-Chlorophyllin.

As of July 5, the new soft drink is available at Sobeys, Bulk Barn, and other select stores. The company promises continued expansion across Canada and said “additional fun flavours” will be introduced soon.

Coca-Cola Expansion

Coca-Cola Canada has over 50 facilities and a local presence in every province, with Alberta locations in Calgary, Edmonton, and Lethbridge. The company currently uses a third-party warehouse and plans to spend $70 million to upgrade its bottling plant in Calgary and turn it into a “new, state-of-the-art, on-site, high-density warehouse,” according to a news release.

On July 5, the company unveiled a video of the automated facility in Calgary saying, “Coca-Cola Canada Bottling is making a groundbreaking supply chain investment, solidifying its commitment to cutting-edge robotic automation and revolutionizing warehouse operations in Canada.”

“With a significant investment of over $70 million, the company is set to transform its Calgary distribution operations, embracing state-of-the-art robotic technology to meet the ever-evolving demands of customers in Western Canada,” Coke said.

The facility will include more automation for storage and retrieval, a digital inventory management system, and more door dock capacity for trucks. The warehouse is estimated to be 60,000 square feet and able to house 19,000 product palettes.

A report from the Conference Board of Canada and Canadian Beverage Association suggests that consumer spending on non-alcoholic drinks rose to $11.9 billion between 2010 and 2019, largely due to population growth.