Battle of the GREEN Colas

With growing health-conscious consumers, obesity reports blaming sugary beverages, calorie concerns, diets and knowledge about the impacts of artificial sweeteners, Pepsi and Coca-Cola consumers are shifting away from soda towards other healthier beverage options. The giants have reacted to this substitution effect by creating new soda formulas and expanding their product lines. The result: Coca-Cola Life and Pepsi True.

coke and pepsi

The content of both of these products is essentially the same, (apart from of course their super-secret formulas which make the “unique” Coca-Cola and Pepsi taste) the giants with this green cola are creating a mid-calorie beverage with stevia, a natural sweetener, to target the growing health-conscious customer.

A couple of similarities and differences:

COCA-COLA LIFE PEPSI TRUE
Calories per can 89 (330ml can) 60 (212ml can)
Distribution Channel Wholesalers and Retailers Amazon.com
Target consumer Health conscious Health conscious
Available in Argentina, Chile, USA, frontier of Mexico, Sweden and UK (in selected stores and locations). US and global reach of Amazon
Main form of Promotion Coca-Cola Life Boutique (in London)Spokesperson: Model Rosie Huntington-Whiteley rosie Online, advertisements on Amazon.com

OK, awesome, a new beverage with a green label to represent health? The story does not end here. First introduced by Coca-Cola in 2013 in the Argentinian market and expanding to others ever since through the conventional manner, its competitor has been a bit more creative. Pepsi whose sales have been lately on a constant decline, reacted not only by creating a similar product but by launching it on Amazon.com (side note: Pepsi took 3 years to develop Pepsi True). Welcome to battle of the brands. Theme line? Who can play it smarter, react quicker and win the most customers.

Pepsi True which will be available in mid-October only on the online retailer (for the moment), is a new step for the beverage company who by doing this is taking their e-commerce to a whole new level. A smart move by the multinational who will be able to analyze the markets where the product sells best and then take action (if viable) to further implement it.

However, although it is a good innovative move, what will these new distribution costs via Amazon really be? Especially if in order to not damage relationships with their bottling partners their bottlers will be compensated for revenue they would have received when purchases are made through Amazon in their territories. Moreover, Amazon could pressure Pepsi into lowering price, which would mean a reduction of profit margin for the multinational. And a last concern, what are Pepsi consumers going to think about this product only been available on Amazon? How many will actually bother to buy the product more than once here? Will their sales volume be affected and impact price?

Overall opinion:Pepsi- Smart move to test your new product. As for both green colas, I am very intrigued to see consumers reaction and if this new product is a success or a flop.

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