How Pepsi’s New Soda Could Mean Trouble For Coca-Cola
New York, NY – GDP INSIDER – 10/13/2014.
This article discusses two soda companies: PepsiCo, Inc.(NYSE:PEP) and The Coca-Cola Company(NYSE:KO)
Finding ways to capture the “hipster” demographic has been a challenge for the soda industry. Both PepsiCo, Inc.(NYSE:PEP) and The Coca-Cola Company(NYSE:KO) are often associated with consumerism and obesity, negatively affecting the ability for marketing and advertising campaigns to convince young people to purchase soda. Coca-Cola attempted to capture this market during the Super Bowl with their controversial “diversity” commercial. However sentimental that commercial may have been, could be overshadowed by Pepsi’s new product.
Caleb’s Kola, a new Pepsi beverage that contains only 110 calories and 29 grams of sugar, is created with fair trade cane sugar, kola nut extract, brown species, and citrus. The product may be able to access the same market of “hipsters” that refuse to drink Starbucks coffee and only choose to go to locally-owned restaurants because of the products with which the soda is made. Not only that, but the beverage could also eliminate a niche market Coca-Cola has thus far dominated.
The Mexican Coke, affectionately known as the “MexiCoke”, contains no sucrose and was believed to contain no high fructose corn syrup, using cane sugar instead. As a result, the beverage became a fan favorite for hipsters. That belief, however, was exposed in 2010 study.
Pepsi’s new soda, however, actually does not use high fructose corn syrup. Not only does the beverage use cane sugar, but that ingredient is fair trade. Simply put, this beverage carries the potentiality to capture the hipster market through authenticity and could spell the end for the Mexican Coke, which has been a cult favorite for the soda company.
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