Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Coca-Cola Discovers a New Way to Appeal to Consumers


The beverage giant is launching a new drink soon.


Dasani Drops, set to launch over the next few weeks, will give water a fruity, tropical taste with just a few squirts. According to The Los Angeles Times, the drink will be quite inexpensive at $4 for 32 servings, and is already set to expand throughout 2013.

Best known for its fizzy, classic taste, Coca-Cola (KO) has had no trouble finding a multitude of ways to quench on-the-go consumers' thirst. As the owner of Dasani, Coke will likely use the drops as part of its larger strategy.

Though certainly innovative in itself, (Coca-Cola is offering Strawberry Kiwi, Pink Lemonade, Mixed Berry, and Pineapple Coconut flavors to start), Dasani Drops may sound like a familiar concept. The new beverage flavoring will serve as a direct competitor to Kraft Foods' (KFT) MiO drinks and Capella Flavor drops, among others.

Innovative ways to slurp down tasty, satisfying beverages continue to pop up all over the place. From Crystal Pepsi (PEP) in the '90s to Green Mountain Coffee Roasters' (GMCR) current Keurig cup craze, classic Coca-Cola consistently faces inventive competition when appealing to younger generations. However, the choice to produce delectable drops could give Coke a leg up on popular carbonated competition such as PepsiCo and Dr Pepper Snapple (DPS).

At zero calories per 8 fluid ounce serving, Dasani Drops offer a strong appeal to health-conscious customers that prefer flavor enhancement over plain purified water. Although Pepsi offers similar benefits with Aquafina FlavorSplash beverages and H2OH! products, the consumer is unable to control the amount of flavor released into those drinks.

Goldman Sachs' recent visit to Coca-Cola's New York-based distribution center hinted towards the future of the growing company.

"[The] increased business complexity was also apparent, which presents both opportunities and challenges for KO going forward," Goldman Sachs noted. "Today, the five areas in the US – from brand concept/development, commercial team, customer retail (national/regional), product supply system to customer care – are all aligned together to work towards the same strategic vision."

Maintaining a cohesive vision, Vice President of Coca-Cola's North American water, tea, and coffee business John Roddey told The Los Angeles Times that eventually, Dasani Drops could prompt the development of other squeezable beverages, such as tea.

Trading up nearly 10% year-to-date, Coca-Cola is a company that has certainly seen its fair share of successes. Over the past five years alone, the beverage distributor is up over 35%, trading near $38.32 during Tuesday's pre-market session.

Editor's Note: This content was originally published on by Katey Stapleton.

Below, find some more great ETF and market content from Benzinga:

Twitter: @Benzinga

Benzinga Pro covers this and all market news in real time. Get your free trial here.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos