From Beverage Digest 1/22/97

Coca-Cola Co readies launch of "Citra" grapefruit-flavored CSD. Industry executive says product likely debuts "in March in the southeast and southwest." Adds "it's comparable" to Squirt from Dr Pepper/Seven Up (DPSU). Introduction of Citra -- coupled with ongoing rollout of Surge (BD 12/14/96) -- means Coke launches 2 new CSD products during 1Q 1997 in US. Coke appears to be filling in product lineup. Surge gives Coke bottlers competitive tool against Pepsi's Mt Dew. Citra provides rival to Squirt. Portent. Back in March 1996 Coke president Doug Ivester remarks: "We don't anticipate introducing new products in 1996, (but) we have some ideas and products for the future" (BD 3/28/96).

Citra. With product's debut months off, Coke technologists reportedly still "tweak formula." Citra rolls out in cans plus new proprietary 20- oz PET bottle. Executive calls Citra "sugared counterpart" to Coke's Fresca diet grapefruit drink. Target consumers: teenagers. Sources say Citra evolves partly from 2 years of research and development on Surge. Executive: "Surge helped focus Coke on the possibility of Citra." Brand. Citra's formulation entirely new; but Coke buys US rights to "Citra" name in 1995 from Jolt Cola producer Global Beverage Co; Global introduces "Diet Citra Soda" in 1993 (BD 1/22/93), then discontinues brand. Coke also owns "Citra" brand name in India, but product different. Nugget. In Indonesia, word "Citra" means "bright face."

Squirt. Squirt's supermarket volume for full-year 1996 totals about 22 mil 192-oz cases, up +2.2% vs 1995. Brand holds 0.7 market share total supermarket CSD volume of 2.1 bil cases; supermarket CSD volume up +3.2% vs 1995. BD/Maxwell all-channel 1995 data estimates Squirt's total volume about 55 mil cases.

Coke system ripples. Coke bottlers handle 39.3% of Squirt's 1996 volume; independents 34.8%; Pepsi system 25.9% (BD 12/13/96). At year- end 1996 Coca-Cola Enterprises is single largest Squirt bottler, moving 32.4% of brand's volume. In March 1996 -- when some Coke bottlers delist DPSU brands (BD 3/28/96) -- CCE drops Squirt in parts of TX. But CCE retains Squirt rights elsewhere; most of CCE's Squirt business in southern CA and MI. Within weeks of March delisting CCE and DPSU sign "long-term" agreement re CCE's "commitment" to 4 DPSU brands: Squirt, Dr Pepper, Canada Dry, Schweppes (BD 4/12/96). Agreement's term not disclosed, but multiple industry sources report pact lasts 5 years. At DPSU's request, CCE subsequently relinquishes Squirt rights in Boston, northern CA, HI, MN, parts of FL. Other Coke bottlers with Squirt include: Coke Southwest/Hoffman, Coke Northern New England, Coke Swire. Coke bottler re Citra: "Coke won't stop until they have a totally pure system with their brands."

Ahead? Competing franchise company executive speculates Coke moves next "into mixers. I keep hearing rumblings about Seagram's. Maybe they'll buy Seagram's mixer line and let (Seagram CEO) Edgar Bronfman spend more time in Hollywood."

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