Researcher: Coca-Cola Life is a hit

via USA Today

               

 There may be some serious life in Coca-Cola Life.

Even as Coca-Cola on Tuesday announced that it was nationally rolling out the long-anticipated, 60-calorie, 8-ounce cola with no artificial sweeteners, Haynes & Co., a market research specialist with no ties to Coca-Cola, has shared proprietary research data with USA TODAY that indicates Coca-Cola Life has been an enormous hit in its very limited distribution.

In the key findings, consumers say:

- They like the taste. Some 70% of purchasers contacted rated the taste four or five stars (out of five stars). In fact, for 45% of the respondents, Coca-Cola Life already has replaced 75% or more of their normal soda purchases.

- They like the look. The green labeling on bottles and cans is appealing to consumers. Some one-third of people who saw a Coca-Cola Life display say they purchased it — a very high trial rate.

- They would buy it again. Some 80% of Coca-Cola Life recent purchasers, when surveyed online, said they would buy it again. Half of the respondents said they are now buying more soda as a result of having Coca-Cola Life as an option.

"We haven't seen a product in the beverage space hitting on all cycles like this for years," says Elizabeth Haynes, president of Haynes & Co, which has done market research for major retailers and large hedge funds. Thefirm reached out to several hundred consumers who remembered seeing Coca-Cola Life, then surveyed 72 were who had actually purchased it. The results are significant, says Haynes, because so many of the respondents rated Coca-Cola Life at such a high level.

What's more, she notes, store managers confirmed what consumers said. The research firm contacted store managers at 22 of The Fresh Market locations that initially sold Coca-Cola Life. Some 50% of the store managers said they had completely sold out at least once. One Florida location said it was selling 50 cases per week. And several store managers said customers were calling the store, asking managers to put some aside for them.

"I've done thousands of store interviews in my career and it's very uncommon for consumers to call a store and request that a product be put aside," says Haynes.

Coca-Cola officials declined to comment on the research. But in a statement Tuesday about the national rollout of the beverage, sweetened with cane sugar and stevia leaf extra, Andrew McMillin, vice president of Coca-Cola Brands, North America, said, "We are working, ultimately, to become a leader in this interesting and emerging category."

Coke needs a lift. Its stock is flat for the year and third-quarter net income fell almost 14%. Meanwhile, sales of the iconic Coke and Diet Coke brands have both been heading south domestically.

Pepsi True, a competing brand, initially sold only on Amazon.com, is now also available on Walmart.com in some markets and on track to roll out to brick and mortar retail in 2015, says Pepsi spokeswoman Andrea Foote. "We are encouraged by early sales and consumer response."