Virgin Plans to Introduce Flavored/Enhanced Water Line in US: 'Virgin Fusion.'

Virgin plans US introduction of "Virgin Fusion" sweetened/flavored water with vitamins and minerals. Virgin calls new product "aquaceutical." Tagline: "water with attitude." Company's previous US initiative was not successful. Launched cola line with great fanfare in May 1998 (BD 5/29/98). Featured Virgin CEO Richard Branson riding into NYC's Times Square in tank and "shooting" at wall of Coke cans. At time, Virgin envisioned signing up multiple 3rd-tier bottlers and even replacing Royal Crown.

New approach. Apparently realizing competing with Coke/Pepsi in colas doesn't make sense, Virgin now sets sights on alternative beverages. Over last two years, Virgin has revamped US operation and moved to Connecticut from California (BD 2/4/00). Virgin US is now run by Cadbury veteran Bob O'Brien. During 2000, Virgin worked to rebuild distribution network. In US, still sells line of CSDs -- cola, diet cola, orange and lemon-lime -- plus "Hi-Energy" energy drink and Virgin Spring water. Virgin document obtained by BD indicates Virgin distributors cover 27 markets in 19 states throughout northeast, southeast, Texas, California and parts of midwest; primarily beer/new age.

Product. Company's new line will be "all natural, fruit-flavored vitamin and mineral enhanced formulations that have tangible, real (marketable) nutritional benefits." Virgin document indicates beverages will be "low in carbohydrates yet pack powerful punch in flavor." Flavors: Raspberry Tea, Citrus Ginger, Lulu Grapefruit, Feijoa Peach and Lemon Cherimoya. Will be "preservative free." Product will be packed in proprietary 20-ounce plastic. Sweetened with HFCS. Targets 18-34 year-olds. Attributes. New line has light taste profile. Virgin quotes focus group participants: 1) "Chuggable -- could drink whole bottle, can't drink whole SoBe." 2) "I add water to Gatorade, but this is it already. I would take (it) to the gym."