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Coke to Test New Citrus-Flavored Soda |
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Written by Administrator
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Tuesday, 17 May 2005 |
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NEW YORK -- Coca-Cola Co. (KO) will test later this year a new citrus-flavored soda called Vault that it hopes will emerge to challenge rival PepsiCo Inc.'s (PEP) Mountain Dew, said Don Knauss, president of Coke's North American operations.
Mr. Knauss, speaking at the Beverage Forum conference here, said testing of Vault will occur in selected U.S. markets. Vault represents the biggest effort by the Atlanta beverage giant to lure away Mountain Dew drinkers since its 1996 launch of a bright-green soda called Surge, which fizzled.
Mountain Dew last year posted the largest volume gain among the major sugar soda brands, according to Beverage Digest, an industry newsletter.
Coke also is testing in Spain a coffee-flavored cola called Blak, and Knauss said that brand could enter the U.S. market at some point. Coke is looking for ways to bring successful drinks from Europe and Asia into the U.S. as the company tries to rekindle sales growth in North America, its largest market. In the first quarter, Coke's soda volume in North America slipped 1%.
Mr. Knauss said there will be "significant product news" on Powerade sports drink in the second half of 2005. Coke has been studying an energy-drink version of Powerade called Advance and a lower-calorie version dubbed Option. Powerade and Dasani bottled water posted double-digit percentage volume gains in the latest quarter.
Coke is exploring the possibility of fortifying soft drinks with vitamins and other health benefits. One brand that could be included in that effort is Fresca, Coke's grapefruit-flavored soda.
"Fresca is one of those sleeping minigiants," Mr. Knauss said.
Cadbury Schweppes PLC (CSG), the No. 3 soft-drink company, has had some success with 7 Up Plus, a soda fortified with calcium and vitamin C that it launched last fall. Coke this summer plans to introduce two new diet sodas, Diet Coke sweetened with Splenda and Coca-Cola Zero.
In addition to slowing sales of core soda brands, Coke's business in North America has struggled recently with lackluster marketing and a dearth of hit new products.
"Our real focus is getting North America back to its pre-eminent role in the (Coke) system," Mr. Knauss said at the conference. He has led Coke's North American operations since early 2004.
Neville Isdell, who came out of retirement last June to become Coke's chairman and chief executive, was praised by Knauss for instilling a winning attitude among Coke employees. Mr. Isdell "has great credibility ... and he is really engaged in the details of the business," Mr. Knauss said. |
