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Thursday, February 1, 2007

Coca Cola battles Pepsi in Health Juice market

The two largest beverage, PepsiCo and Coca-Cola are going head to head once again. This time its in the premium juice and tea markets. Coca Cola has recently purchased Fuze, a juice and tea beverage company. The purchase was around $225 million. Fuze makes vitamin-enhanced juice-flavored drinks. They also own WaterPlus enhanced waters. Fuze is on the up-scale side... a bit out of Coca-Cola's league but with consumers being health concious and seeking for more organic products... its a good start. Big brother is watching...rival PepsiCola can't help but take charge and gain that market share. Pepsi has purchased an even more expensive product cleverly titled Naked Juice. Despite this product being more expensive, Pepsi has full confidence that it will work. Coca Cola currently owns several subsidiaries including Dasani Water, Powerade, Sprite, and Minite Maid. On the other hand Pepsi has many diversified companies under their umbrella: Gatorade, Quaker Oats, Aquafina, Tropicana and more. Could these healthier alternatives be another effort to gain vending machine contracts with schools? Following several state laws stating that all vending machine "junk-food" should be replaced with "healthier-foods and drinks, beverage companies are aware of the impact on their bottom line, therefore they must improve. I think that Coca Cola has the better hand on this; being that their product, Fuze, seems healthier than Naked (the name "naked" does not appeal to the up-scale crowd). I'll keep you posted. In the mean time... look out for these product releases and leave some comments.

1 comment:

  1. ...Fuze, seems healthier than Naked ...
    If you've tried Naked, you won't be so sure! I worked for the company. Their juices are really genuine stuff. I hate they laid me off because of the Pepsi deal.

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