Prepping for Nestea Transition, Coke Introduces New FUZE Teas, Juices

The Coca-Cola Co. Inc. has introduced a new line of tea and juice drinks for its FUZE brand as it prepares to hand over distribution of Nestea to Nestle Waters North America (NWNA) at the end of 2012. Earlier this year, Coke and NWNA announced that they would alter their 20 year partnership and marketing agreement of the Nestea brand to focus away from North America. Within the announcement, Coke said that it would utilize FUZE as a replacement for Nestea, which has been positioned as the cola giant’s value-branded option within its tea portfolio. The new FUZE offerings include a lemon tea, a tea and lemonade blend, and a strawberry lemonade, and are priced at $.99 for a one-liter bottle.

Here is Coke’s press release announcing the new FUZE line extension:

Brand Poised for Growth with Five New Flavors Hitting Convenience Store Shelves This Month

ATLANTA–(BUSINESS WIRE)--FUZE^® is celebrating a summer of great-tasting refreshment with the introduction of its new collection of teas and juice drinks. The new FUZE line-up features a blend of natural flavors to keep Americans cool and refreshed.

The launch kicks off this summer, with a full offering of fountain and bottle/can package options available by the end of the year. The 1-liter package is available now at convenience stores across the country. The new selections from FUZE include:

• Lemon Iced Tea
• Honey and Ginseng Green Tea
• Half Iced Tea & Half Lemonade
• Berry Punch Juice Drink
• Strawberry Lemonade Juice Drink

“Our fans expect vibrant tastes from FUZE and we are excited to add five new flavors to the FUZE family,” said Chris Johnston, Tea Director, Coca-Cola North America. “We expect our new teas and juice drinks will both refresh people and accelerate our momentum in this growth segment.”
FUZE beverages offer consumers a great-tasting source of vitamins B6 and B12,^* available in all FUZE products except Honey & Ginseng Green Tea. They are currently available in 1-liter packages affordably priced at $.99 at participating retailers.

Additional FUZE offerings will debut throughout the remainder of 2012.

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Review: Steaz Oragnic Iced Teaz

Steaz Super Fruit is a lightly sweetened USDA Organic and Fair Trade certified flavored green tea. It features acai and lemon juices as well as mangosteen, goji, pomegranate, and blueberry flavorings and is sweetened with evaporated cane juice. From a flavor perspective, the product is light in body and has a mellow tea base. The added juice is very light and not distinguishable from the mix, while the combination of fruit flavors gives the product a fruit flavor that’s basically that of a mild fruit punch. It’s not overly sweet (it has 18g of sugar per can), but as you drink the product it definitely leaves behind a sugary aftertaste. Overall, it’s a pleasant tasting product that should have appeal with a mainstream consumer. Visually, it’s more of the same for Steaz, with a stacked design to the front panel. The fruit image feels a little crammed, with too many fruits in a rather small space. Otherwise, it’s easy to read and cleanly designed. Definitely a nice extension to the Steaz Iced Teaz line.

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Mountain Dew ad banned as reckless

In its recent digital ad for Mountain Dew, PepsiCo showcases a snowboarder performing an extreme sports’ trick, followed by an instruction to viewers, “Don’t Dew This at Home.” Despite the warning, the Advertising Standards Authority (ASA) has banned the ad, fearing the possibility of emulation by viewers, and particularly youth.

The ad is consistent with the extreme, risky quality of Mountain Dew’s previous campaigns. A young male snowboarder grabs onto a rope attached to a moving subway train, riding in bliss until what appears to be a dangerous fall. The screen goes white- displaying the warning message, “Don’t Dew This at Home”- and the ad turns to a group of friends tackling each other and celebrating with some Mountain Dew.

PepsiCo’s ad has been playing on YouTube since 2009, though it recently again been featured in video gaming apps and a few social media websites. The ASA received complaints that the stunt was realistic enough to be emulated by viewers- that were likely young due to the media surrounding the ad. PepsiCo replied that the ad was featured as solely a stunt and not a realistic event, made more apparent by the witty warning sign. Pepsi-Co also explained that the spot was intended only for viewers above age 16. It responded further by increasing the viewing age requirement to 18 and over.

Despite the entertainment-focused intention of the ad, ASA has ruled the video to be too much of a risk in its current display and has banned it for the time being. 

Blog post written by Deutsch Intern: Olivia Lassoff

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Coke and Will.I.Am collaborate to Create Ekocycle

Coca-Cola has teamed with rapper-entertainer Will. I. Am. to create Ekocycle- a new e-commerce site devoted to offering sustainable products created from recycled material. The site differentiates itself among other green-retailers by selling high-end goods, with style that most sustainable products lack. Will I. Am. spoke to the Associated Press expressing his concern that recycled goods in the market carry a reputation for being more functional than fashionable.  He claims that when thinking about “[recycled] products now, none of them are cool” (Hollywood Reporter). The new partners hope to expel this stigma by creating Ekocycle, a store that sells goods that are not only green, but also “bring some art and fashion sensibility into this technology” (HR).   Shoppers can browse current merchandise, including EkoCycle Beats by Dre headphones, and while also having the option to suggest products they hope to see among future offerings.

Coca-Cola is invested in increasing the low rates of national recycling, as today only “30 percent of people recycle in the U.S.” Coke’s Chief Sustainability Officer, Bea Perez believes that educating the public and changing sustainability into an easy and accessible process will help to raise this number. Coke also sees Will as having the potential to inspire a “youth movement” and ease shoppers into spending the extra few dollars- associated with recycled goods (MNN). The beverage brand is furthering its devotion to the cause by donating at least $1 million from its licensing products to other organizations committed to recycling and social change.

Coke has integrated its bottle into the first TV spot for Ekocycle . The commercial showcases how a little creativity can transform a bottle- and other recyclable goods- into innovative, artistic consumer styles. Coke Ekocycle provides users with the opportunity to “wear their consciousness” and make purchases that have an impact beyond just superior style (HR).

Blog post written by Deutsch Intern: Olivia Lassoff

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Diet Coke celebrates their 30th birthday by throwing 30 second birthday parties for fans!

Diet Coke is spreading happiness, and this time it's to celebrate their 30th birthday and their fans! Diet Coke fanatics could tweet to @DietCokeUS with a chance to be surprised, not only with a 30 second birthday party, but also a year supply of Diet Coke. Watch the video below of fan's celebration. Check out their YouTube site to see more birthday party celebrations.

Hugo Chavez Tells Venezuelans to Drink Juice, Not Coca-Cola

President Hugo Chávez has urged Venezuelans to drink fruit juice produced by a state-run company rather than Coca-Cola or Pepsi.

He says people should buy Uvita, a grape juice made by Corpozulia as a means of increasing the consumption of Venezuelan-made products instead of buying sugary sodas made by foreign companies.

Chávez often dispenses advice to supporters during his marathon televised speeches, calling on them to eat healthy foods, exercise and avoid drugs and alcohol.

During Sunday's speech, he said Venezuela was trying to boost consumption of domestic goods as a means of reducing imports. Chávez is also promoting a Venezuelan wine. The South American nation imports most of the food and drinks Venezuelans consume.

The president also vowed not to stop using the country's airwaves for his addresses, despite complaints from his challenger that it gives him an unfair advantage during the election campaign.

Opposition candidate Henrique Capriles has demanded that election officials prevent Chávez from taking political advantage of the special broadcasts, which all networks are required by law to air, before Venezuela's election on 7 October.

Directors of the National Electoral Council have approved campaign regulations that prohibit TV and radio messages that favour a presidential candidate to run longer than three minutes. But it is unclear whether the president's frequent and lengthy special broadcasts, known as "cadenas", will be affected.

"The cadenas are part of the national government's information strategy," said Chávez, speaking during one of the special broadcasts. "The bourgeoisie wants me to give up something that's the faculty of the president of the republic. I'm not going to do it."

Chávez, a former paratroop commander, argued that most of Venezuela's privately owned TV channels, radio stations and newspapers are biased in favour of Capriles and he accused the independent media of ignoring his government's achievements. "The major part of the radios, television channels and newspapers are in the hands of the bourgeoisie," said Chávez, who is seeking re-election to a fresh six-year term.

When Chávez took office in 1999, he referred to four major TV channels – RCTV, Venevision, Globovision and Televen – as the "four horsemen of the apocalypse". He accused the channels supporting a short-lived 2002 coup by broadcasting cartoons and films instead of the protests that aided his return to power.

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Sprite's Salute to Individuality: The Latest Soft Drink to Support Originality and Bravery in Youth

Sprite’s latest TV spot out this July, by BBH in New York and Shanghai, embraces messages of individuality and rebellious youth spirit- common themes among recent CSD campaigns. The “Camouflage” spot encourages consumers to emerge from hiding and break free from the monotony of their surroundings. Brand manager, Jonathan Mildenhall, hopes the spot will motivate youth to be comfortable in their own skin and unmask themselves to reveal their unique colors. The ad’s lead sheds his exterior mask and markings, inspired by the unique “Sprite” taste and spirit. Once free from constraints, he explores the city with a new appreciation and grasp of the blending and hiding that plagues mankind. The spot ends with hope, as another “individual” joins him in the revelation, with a Sprite in hand. The ad sings to the tune of the “Always One Of A Kind” campaign, by concluding with a feeling of unity that comes as a result of self-acceptance and originality.

Campaign managers hope the commercial will be especially meaningful to youth in countries, like China, whose teens are only recently familiar with ideas of rebellion and individual differences.  Free of words, the ad translates cross-culturally and can be aired in many contexts.

Viewers may just walk away from this ad with a new motivation to pick up a sweet beverage and embrace the diversity, expression, and opportunity for connection right before their eyes. In search for individually, the question is now whether they will pick up a Sprite, or rather a Dr Pepper.

Blog post written by Deutsch intern: Olivia Lassoff

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The Olympics Promote the Healthiest Habits in the World. Should Coke, McDonalds, and Cadbury Be There Too?

The International Olympic Committee (IOC) insists that the sponsorships it receives from major corporations like Coke, McDonalds, and Cadbury allow fans from around the world to enjoy the games. And yet these contributions allow brands like Coke to market themselves on a global platform and offer their products to millions during the world’s most athletic, health-oriented event.

The Childrens’ Food Campaign believes that using the world-stage of the Olympics to market fast-food and sugary beverages promotes the adoption of unhealthy habits to millions, despite the fact that the IOC receives only 2% of its income from these sponsorships. It urges greater caution be taken when choosing advertisers, and hopes companies like McDonalds and Coke will be banned from future sponsorships. Reports expect over 23 million Cokes to be consumed at the Games, and the Childrens’ Food Campaign worries the global visibility of a brand like Coke could be very dangerous for the young, worldwide audience.

Coke replied, defending its contribution to the success of the Olympics, and insisting that its drinks- or any single food or beverage- cannot be blamed as the sole cause of a population’s health issues.  

Blog post written by Deutsch Intern: Olivia Lassoff

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Restaurants Embrace Teas, Chillers, and Natural Beverages to Bring in Consumers: A Look at What Makes Americans’ Mouth Water

BevIndustry.com’s recent report on quick service restaurants highlighted the unmatched growth of the fast-casual dining segment during current economic recovery. This segment of slightly higher quality fast-restaurants, like Five Guys, Go Roma, and Noodles & Co, has garnered a growth of over 11% in the last 5 years, in comparison to the 1.4% overall growth of quick-service offerings. One reason for this sector’s rebound is its investment in high-quality, all-natural beverage options. Consumers are willing to spend slightly more in exchange for the natural, quality, and unique drinks that have come to define the fast-casual dining experience.

The entire quick-service restaurant segment has been quick to respond, with an increase in pricier, unique beverage offerings. McDonald’s Chillers with “100% fruit juice and natural flavors” as well as Wendy’s  “cane sugar” all-natural lemonade demonstrate the growing popularity of premium nature-based beverages, even in a time of economic hardship. BevIndustry highlights the swift response of beverage providers to create offerings that consumers are craving. Caribou Coffee introduced its newest line of all-natural sparkling teas and juices, and Numi Organic Tea invested in five, Fair Trade, organic brewed iced tea options.

NextLevel Markteting identified consumer’s primary concern for quality over affordability when selecting a restaurant or fast-casual experience. Beverage selection has become a determining factor, and companies like Coke have worked to increase the assortment and number of their beverage options at restaurants, via new Fountain machines. Coke Freestyle, interactive fountain machines with 100+ flavors are experiencing increased distribution and are available in over 4000 locations. 

Beverage-concentrate provider, Multi-Flow Industries, addressed consumer interest in natural ingredients by offering zero-calorie, natural choices like nourisH20 vitamin-enhanced water and all-natural, sugar-sweetened Fountainhead Gourmet Craft Sodas. The company continues to address American’s long-time desire for fountain drinks. However, it now ensures that there are options for the “modern socially-aware consumer” at a time when the “natural’ trend is the single largest [trend] affecting food and beverages.” Multi-Flow anticipates increased investments in lemonade, smoothies, energy drins, and iced tea products as soft drink consumption remains flat or declines. With consumers’ primary concerns moving toward the natural and innovative, restaurants are taking the time and money to create drinks that will bring customers in and leave them coming back for more.

Blog post written by Deutsch Intern: Olivia Lassoff

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Coca-Cola and Auntie Anne's new campaign targets moms in Atlanta shopping malls

Coca-Cola and pretzel seller Auntie Anne’s have partnered on a location-based, back-to-school-oriented mobile ad test in Atlanta.

Through Aug. 15, the pilot will target moms, teens and tweens who might be back-to-school shopping. The banner-like ads will appear via a network of apps from categories such as games, health, fitness and weather. The creative will pitch a coupon for a Coke and a soft pretzel item when the consumers are close to one of Auntie Anne’s 11 shopping mall locations in the southeastern city.

Coke and Auntie Anne's are utilizing technology from mobile advertising companies Millennial Media and Sparkfly in the effort. The brands can track the campaign’s performance by assessing redemption rates and other data. However, Tom Daly, an interactive manager for Atlanta-based Coca-Cola, said that his beverage company's reaction to the test won't tilt too heavily on redemption rates. "Certainly, we'll be interested to compare against other coupon tactics, but redemption rate alone is not what we are looking for," he said. "We will be looking at other data points along the 'value chain' to help best understand [mobile's] true role."

At the same time, Auntie Anne's brass sounded a little more compelled to see what percentage of coupons were converted to sale.

“The ability to measure ROI on mobile...and track it on one platform enables [us] to make an intelligent assessment of mobile's performance against other channels," said Heather Neary, CMO at the Lancaster, Penn.-based retailer.

In technical terms, Millennial Media general manager Marcus Startzel described how the campaign can zero in on moms. “We use our first-party data to build unique audiences on our platform, and moms are certainly one of the key real-world audiences we are able to reach,” he said. “We can then overlay this with location data we have on our platform, and combined, it allows us to reach the right consumer, at the right time and place.”

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