Coca-Cola Co (
) will launch Dasani Drops as part of its aim to offer more
products containing fewer calories. The water drops will be
priced at $4 and will be introduced in October. Coca-Cola is
not the first company to pioneer in water mixers. Kraft Foods (
) launched its MiO water mixers in March 2011 and generated sales
of more than $100 million in the first nine months of launch.
This means beverage companies see this segment as one with growth
potential. The flavor drops can be added to water as per the
requirements of consumers. Moreover, the drops are sugar-free and
contain zero calories.
See full analysis for Coca-Cola Co
DPS and PepsiCo Doing Their Bit
Overall, there has been a surge in demand for beverages with low
calorie contents. Hence, the beverage companies are working hard to
broaden their portfolios and coming up with new and innovative
drinks. For instance, Dr Pepper Snapple (
) launched its mid-calorie drink
Dr Pepper TEN
in the last quarter of 2011 while PepsiCo (
) launched its
earlier this year. Both the drinks claim to taste the same as the
original, flagship drinks but contain fewer calories.
DPS could also be rolling out other
in a short time. According to the company's CEO Larry Young,
the company is running the test products in four or five different
markets. Coca-Cola does not have any mid-calorie soda at
present. Moreover, PepsiCo is also reportedly fiddling with
the formula of
to improve its taste. The current artificial sweetener used in the
drink, aspartame, loses some of its sweetness during
transportation and at high temperatures. In addition,
sales were down 8.2% in 2011, so the company is definitely focusing
on the right area.
PepsiCo is also upping its marketing expenditure by $600 million
in 2012 with a greater focus on soft drink sales in North America.
The most recent marketing campaign involves actor Sofia Vergara as
the face of
to target the female customers in the country.
We have a
$39 price estimate for Coca-Cola Co
, which is roughly in-line with the current market price.
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