(“Coke Revamps Ad, Sets New Product,”) KGET.com, Week of December 9, 2005)
Excerpt relating to TaB Energy:
“Also during the presentation, Coke marketing chief Mary Minnick said Coke was introducing higher-margin extensions in the fast-growing water category and that it plans to launch ‘Tab’ energy drink targeting women. Minnick also announced the company’s new advertising slogan: “Welcome to the Coke Side of Life.”
Coca-Cola has introduced several diet and reduced-calorie drinks in recent months to meet changing consumer tastes.
It is also now packaging Coca-Cola in an 8.4-ounce can and touting the serving has just 100 calories, Minnick said.”
Full Article:
Coca-Cola on Wednesday revealed its hipper side with a slew of innovations and packaging along with a new marketing slogan that Coke’s chief executive Neville Isdell said will help drive its previously forecast volume and profit growth.
Atlanta-based Coca-Cola, which has struggled for five years to boost sluggish soft drink sales and meet changing consumer tastes, said it still expects earnings-per-share growth in the high single-digit range.
Coke also stood by an earlier forecast for long-term annual operating earnings growth of 6 percent to 8 percent.Isdell said the company would likely pursue more ‘bolt-on’ or smaller geographic acquisitions in ’06. Chief financial officer Gary Fayard said Coke plans to spend $2bn to $2.5bn on share repurchases.
Coca-Cola discussed plans for new carbonated and non-carbonated drinks and for attractive packaging in the form of colourful 200ml aluminium bottles, during the presentation. Coca-Cola Blak is a new cola-coffee beverage that will debut next month in France.
Also during the presentation, Coke marketing chief Mary Minnick said Coke was introducing higher-margin extensions in the fast-growing water category and that it plans to launch ‘Tab’ energy drink targeting women. Minnick also announced the company’s new advertising slogan: “Welcome to the Coke Side of Life.”
Coca-Cola has introduced several diet and reduced-calorie drinks in recent months to meet changing consumer tastes.
It is also now packaging Coca-Cola in an 8.4-ounce can and touting the serving has just 100 calories, Minnick said.
The company unveiled a new advertising campaign expected to debut in North America during the ’06 Winter Olympics that will promote wellness and showcase its broad line-up of drinks. The wellness campaign comes amid obesity concerns in the US, particularly among children.
“It’s a transformation of the company from everything starting from product lines to distribution to retail accounts and they have put a lot of effort into it and they have to make it work,” said Michael Bellas, chairman and chief executive of Beverage Marketing, a research and consulting firm.
Some industry watchers have said Coke fell behind competitors such as PepsiCo since it held off from acquisitions and took less risks with innovative products.
“They need an acquisition so that they can channel capital into something other than bolt-ons,” said Douglas Lane, president of Douglas C Lane & Associates, which holds 600,000 shares of Coke. “Pepsi shares have outdone Coke’s because they have taken the risk.”
Coke’s shares have fallen about 17.5 percent since Isdell became CEO in ’04 and are 52 percent off their lifetime high of $88.9 set in July 1998. By contrast, rival PepsiCo’s stock has soared 57 percent over the same period.
Copyright (c) 2005, The Economic Times, India
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