Coke and Pepsi launched their mid-cal colas -- Coke C2 and Pepsi Edge -- in early-mid June in limited packaging. Both companies using 20-oz. In addition, Coke is using 8-/18-can packs, and Pepsi will use six-packs and 2-liter. No meaningful data will be available on C2 and Edge until next month. BD talks to multiple Coke/Pepsi bottlers to get early anecdotal views. Essence. Coke and Pepsi bottlers says it's too early to know much, but both say key is educating consumers as to "what these products are," and several bottlers cite confusion about the products. Timing. BD seeks/obtains more bottler views on C2 than Edge, as C2 ads debuted on May 25; Pepsi Edge on July 3.
News: C2 caffeine-free. Several Coke system executives say Coke plans launch of caffeine-free version of C2 in late summer or early fall. Notes one, "it's a natural extension of the reduced sugar concept -- no caffeine, reduced sugar."
TV ads; billboard difference. Re C2 and Edge, Coke and Pepsi take similar approaches in their TV ads. Both start with entertainment module and then stress less sugar or calories and less carbs. In outdoor billboards, there is difference. Pepsi copy states: "Full flavor, 50% less sugar." Coke uses somewhat more abstract approach with billboards proclaiming: "Half the tax, all the refund"; "Half the political, all the party"; etc. Coke outdoor copy is, presumably, designed to evoke "half the calories, all the flavor."
Coke bottlers re C2: 1) "We're trying to get a good build, we're not trying to do a gazillion cases the first month." 2) "Consumers are still trying to figure it out." 3) "We did a good job in getting it out, but it's too early to tell ... Consumers aren't sure what the drink is yet." 4) "It's a different product, and people are asking what is it." 5) "It's doing well, but starting slower than Vanilla Coke. Sampling will be key." 6) "It's doing better in upper income than ethnic neighborhoods." 7) "We're doing as well with C2 as with any recent introduction. We're not getting any pushback on pricing, but it's early." 8) "Neither C2 nor Edge is jumping off the shelf, but it's early." 9) "Education process is critical. People are still trying to learn what it is."
C2 packaging; 2-liter?. Coke launched C2 with premium pricing. Outgoing Coke president Steve Heyer said it will "never" be in 2-liter (BD 5/28/04). But one Coke bottler says PET "packages are very popular, and we have no 2-liter or PET multi-packs." Adds: "Consumers will tell us how they want to buy beverages. If they want to pour it in family occasions, we'll have to do 2-liter." Other bottler: "It's important we break the cheap 2-liter syndrome, and (C2) may help." Third bottler notes: "The packaging is tricky, making sure we get the pricing right." Ahead. Coke system executive reiterates C2 will "never" be sold in 2-liter but suggests it may be sold in other multi-serve PETpackaging in future.
Pepsi bottlers re Edge. As BD reported this story, Edge ads had either not begun or only run for few days. In that context, bottlers say: 1) "It's way too early to tell. There's curiosity, but consumers don't understand the product proposition." 2) "We have the right packaging." 3) "It's pretty hard to trick consumers. We think it's best to introduce brands in packages that consumers like." 4) "There seems to be some consumer confusion about mid-cals." 5) "By mid-July, when the ads have run for a while and we're not focused on July 4th, there could be more momentum." 6) "Consumers don't yet know about the product or understand what it really is, so it's not off to the races yet." 7) "It's early. With 20-oz, all (the Edge volume) is coming out of Pepsi. Pepsi says it will pull from non-carbs, but we're not seeing that yet." 8) "It could be huge."
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