Coca-Cola launches new energy drink

Glacéau Vitaminwater is flavoured water enhanced with vitamins and comes in six flavours: power-c (dragonfruit), essential (orange-orange), energy (tropical), super-v (lemon), xxx (acai-blueberry-pomegranate) and revive (fruit punch).

Last year Coca-Cola began the global expansion of the product, launching it in the UK and Australia. In 2006 it earned revenue of US$350m.

The product is now available in SA, Australia, Mexico, Canada, New Zealand and the UK.

Absa Investments analyst Chris Gilmour said the product's premier price, about R12,99 for a 500ml bottle, would limit the market for it.

He said the product may be more relevant in developed markets than in poorer ones. Its appeal would be limited to high income “faddists”, he said.

In 2007, founder J Darius Bikoff agreed to sell his invention to Coca-Cola for $4,1bn. Rapper 50 Cent — Curtis Jackson — made $400m for his 10% stake, earned as part of an endorsement deal.

The drink was created by Bikoff in 1996 when, en route to a yoga class, he ate a vitamin C wafer and chased it with a swig of water.

The combination inspired Bikoff to develop Glacéau Vitaminwater. He first created the enhanced water category and then went on to build Glacéau.

The 500ml single serve plastic bottle will be found at select retail stores in Johannesburg and Cape Town, with a launch in Durban to follow in September.

The launch comes just after Coca-Cola was refused permission by China's government to acquire one of China's largest juice makers, China Huiyuan Juice Group.

The deal, which would have been the biggest foreign takeover of a Chinese company, would have, according to the government, unduly restrict competition.

Coke Zero was one of the most successful product launches in Coca-Cola's history. In 2007, it sold nearly 450-million cases globally.

Source: Business Day

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