The battle for market share of mid-calorie colas is about to heat up.
The Coca-Cola Co. will introduce C2 in Japan and then roll out the new soft drink this summer in the U.S., the company said this week. Pepsi said last month that it plans to roll out Pepsi Edge in August. And Cadbury Schweppes continues consumer research on a mid-calorie Dr Pepper product.
Coca-Cola said it had put more than a year of research and development into the product, which will have half the sugar, carbohydrates and calories of regular colas.
The packaging features the well-known Coca-Cola trademark in black on a red background to distinguish the new cola from the flagship brand.
A marketing push begins this summer including TV, radio, out-of-home and Internet. C2 will be available in cans, at soda fountains and as a frozen carbonated beverage. Berlin Cameron/Red Cell, New York, handles the campaign.
The introduction of C2 will mark the fifth new product in the cola category that Coca-Cola has introduced over the past two years. Previous debuts were Vanilla Coke (2002), Diet Vanilla Coke (2002), Diet Coke with Lemon (2001) and Diet Coke with Lime (2004).
Pepsi Edge advertising is being handled by BBDO, NY. The new drink contains 50% less sugar, carbohydrates and calories than Pepsi. It has 70 calories and 20 grams of sugar in each 12-ounce can. A combination of Splenda and high fructose corn syrup was used to reduce the calories and sugar, the company said.
PepsiCo’s share of the U.S. soft drink market gained ground last year, while arch rival Coca-Cola lost share. Coca-Cola, the world’s largest soft-drink maker, saw its share of the market drop 0.3% to 44%, while PepsiCo’s share rose 0.4% to 31.8%, according to Reuters, which cited a survey by beverage industry specialists.
Analysts and experts have questioned whether sales of mid-calorie colas will cannibalize sales of the full calorie or diet brands.