Coke Will 'Probably' Change Name of Diet Sprite to 'Sprite Zero.'
Bottler: 'No Calories, No Carbs, No Caffeine.'

As industry prepares for unprecedented push behind diet CSDs next year, Coke system executives say Coke "probably" changes name of Diet Sprite to "Sprite Zero" in North America. One bottler says, "it's a done deal." Another says, "it's 60-40." Most bottlers talk as if it will happen. One bottler, asked for comment, declares: "This is still a secret." Several bottlers say change may also involve formula tweak. Coke last changed Diet Sprite formula in 1999 when it modified sweetener from aspartame to aspartame/ace-K blend (BD 1/7/00). One source says use of sucralose "possible." Timing. Bottlers say if Coke proceeds with name change for Diet Sprite, new product would likely launch in late spring or early summer. Other market. Coke currently uses name "Sprite Zero" in Greece.

Perspective. Coke bottlers very positive on plan, but several express one concern. They note regular Sprite is an "edgy brand." But many of Diet Sprite's future consumption channel customers, they say, are "older consumers who buy it because they want no calories or caffeine." Bottler notes Coke "will have to make sure they explain the proposition to those customers, so they know they're still getting their 'Diet Sprite.'" However, all bottlers interviewed say new name would "work great" for younger consumers and in immediate consumption channels. One system executive notes: "With more and more younger consumers drinking diets, this brings the positioning of Sprite and Diet Sprite into alignment." Other bottler: "It's a great idea. This will resonate better with younger consumers." Adds, "the word 'diet' may not be a positive for some consumers." Growth. One Coke system executive notes Diet Sprite has been growing, "without much attention. This should light some rockets under it."

'Healthy.' Several bottlers also say word "diet" isn't broad enough. They claim "Sprite Zero would speak to a healthy product: no calories, no carbs, no caffeine." Caveat. Though sources say change from Diet Sprite to Sprite Zero is "probable," "likely," several caution that "absolute final decision" has not been made yet. Other executive says Sprite Zero "could possibly be" a line extension, but adds, "it's more likely it will replace Diet Sprite."

Brand data. Diet Sprite in 2002 posted all-channel volume of 57.2 mil cases; up +1.5% vs 2001. For first nine months 2003, brand is up +1.2% in supermarkets and up +23.2% in C-stores. Table shows share/volume data for Diet Sprite plus category.