From Beverage Digest 11/20/98

Royal Crown Considers 'Energy Cola.'
Triarc May Also Offer Flavored Water.

Triarc Beverage Group may introduce "energy cola." Names under consideration said to include "RC Edge" and "RC Energy," says bottler. Bottlers/distributors also say Triarc works on flavored water line, possibly under Snapple trademark. Energy cola. New product could be available in early 1999. Bottler says package under consideration is colored PET. Recent Interbev trade show teems with energy drinks, mostly from small companies (BD 11/6/98). Energy drinks part of proliferation of value-added beverages, which claim to do more than refresh (BD 6/7/96). Energy drinks usually contain caffeine; some also use ingredients such as: taurine, ginseng, etc. At Interbev, for example, Red Devil shows "Power Cola" with taurine, guarana, caffeine.

Royal Crown. Bottler says Royal Crown's energy cola would feature increased levels of caffeine and sweetener. Other bottler says RC also considers version with ginseng, calls product "work in progress." Bottlers: 1) "We need innovation and we need things which will attack the teen (market). RC doesn't do that. This could hit the spot." 2) "It's a great idea, I'm enthusiastic. We can't win the price war, we have to differentiate ourselves." 3) "They're not finished with it yet, but I don't see much potential." 4) "It needs some work, they need to test it." 5) "RC has to hit some niches ... Red Bull (energy drink) sells at $2 (per 8-oz) can. We should get some of that (market)."

Past RC cola innovation. Bottler reservations may relate to last major RC introduction: Royal Crown Premium Draft cola launched in 1995 (BD 6/9/95). Product introduced with great flair, but eventually pulled from market. Most bottlers agree RC innovation essential; one notes: "If we don't have a point of difference, it's only a price war." In 1997, RC cola's volume totaled 83 mil cases, down from 112 mil cases in 1985.

Ahead. Triarc Beverage owns RC, Snapple, Mistic and Stewart's. Snapple succeeds this year with WhipperSnapple. Industry executives report/predict more Triarc innovation next year. Flavored water. Executives say Triarc considers introduction of flavored still water line. Unclear if product would be sweetened or unsweetened; also if it would be sold under Snapple name, but one source says, "that's likely." Product would be hot-filled in PET. Distributors: 1) "This could be dynamite. It's like squeezing a lemon into your Evian, but the lemon's already in there." 2) "These guys (at Triarc) are good." Plus. Triarc also plans: 1) Mistic Italian Ice smoothie line (BD 11/5/98). 2) cold-fill Mistic Sun Valley Squeeze in PET bottle with full-wrap label. Squeeze will be sold to bottlers/distributors as finished goods product, "not bottler produced."

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