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Friday, January 26, 2007

Highlights in the History of Coca-Cola Television Advertising


The D'Arcy Era, 1950-1956

The first television ad created for The Coca-Cola Company was produced in conjunction with a television special featuring Edgar Bergen and Charlie McCarthy on Thanksgiving Day, 1950. The sponsorship of this program and its advertising were both by the D'Arcy Agency of St. Louis. D'Arcy had been the advertising agency for The Coca-Cola Company since 1906, when William C. D'Arcy persuaded Coca-Cola to begin a newspaper campaign. From that modest beginning developed a fifty-year relationship. For much of that time, Arthur (Archie) Lee was the creative chief at D'Arcy who oversaw the account and created such memorable slogans for Coca-Cola as "the pause that refreshes."

Television advertising was initially an experimental medium for The Coca-Cola Company and D'Arcy. Both struggled to develop a strategy to reach consumers effectively at a time when few cities had television stations. One approach was through sponsored programs that offered the opportunity for The Coca-Cola Company to expand relationships with performers from its radio programming. The initial Edgar Bergen special was quickly followed by sponsorship of Walt Disney's television premiere on Christmas Day, 1950, One Hour in Wonderland, and the next three years saw Coca-Cola sponsor the Western genre program The Adventures of Kit Carson and Coke Time with Eddie Fisher, a variety program.

Nevertheless, Coca-Cola struggled with television advertising. In 1953, an internal memo in the company's Advertising Department begged for time to develop a strategy to reach consumers through the new medium, and D'Arcy had difficulty developing effective advertising outside of the sponsored programming.

In that same year, 1953, D'Arcy developed three basic types of television ads. In one type, The Coca-Cola Company offered station-identification slides that aired for up to twenty seconds. These generally featured a piece of advertising art with the station call letters, accompanied by a voice-over announcement. D'Arcy also created its first live-action motion-picture films, in twenty-second and one-minute versions. The twenty-second spots featured in this online collection were made in what D'Arcy described as "stop motion" technique, in which "the objects shown in each one (bottles, sandwiches, a telephone, a typewriter, etc.) move and perform action by themselves without the presence of live actors. The result is a series of fresh and novel spots sure to attract a lot of attention and interest."



From D'Arcy to McCann, 1956-1969

D'Arcy was a highly regarded print advertising agency, but its struggles to incorporate new media, coupled with the deaths of William D'Arcy and Archie Lee by 1950, led The Coca-Cola Company to search for new talent. In 1956 the company's advertising account was transferred to McCann-Erickson. D'Arcy closed and commemorated its fifty years of work with Coca-Cola in a print ad that appeared in the Wall Street Journal on April 2, 1956.

McCann launched two campaigns during the 1950s, "The Sign of Good Taste" and "Be Really Refreshed". Both used television to the fullest with a variety of advertising formats including animation, stop motion, and live-action ads featuring such performers as the McGuire Sisters, Connie Francis, Emmett Kelly, Anita Bryant, and the Brothers Four.

The number of ads and their production values rose dramatically from 1956 to 1963. In 1963, McCann hit its stride with a campaign that proved to have worldwide appeal, "Things Go Better with Coke." The words and music for the slogan at the heart of the campaign were written by McCann's creative director, Bill Backer, and performed by the popular folk-revival group the Limelighters. By design, the words also translated readily into almost any language, allowing the slogan to travel the world.


Look Up, America

During the mid-1970s, the political uncertainty in the United States stemming from Watergate and the resignation of President Richard Nixon presented a new creative challenge to The Coca-Cola Company's advertisers. Their solution: as the nation questioned its direction, Coca-Cola would remind Americans of their country's positive values in the "Look Up, America" campaign.

The commercials showed what were considered to be typically American scenes, from football players to a cattle herder to country-and-Western singers. An announcer talked of the land "from sea to shining sea," explaining, "no matter what you're doing or where you are, look up for the real things" such as Coca-Cola. The strategy's success may be gauged by the fact that in December 1974 Advertising Age magazine named Donald R. Keough, president of The Coca-Cola Company's U.S. group, Adman of the Year, noting his representation of "a company which over the years has so successfully keyed its advertising to the mood of society."

"Look Up, America" made a transition to a timely, upbeat new campaign, a celebration of the country's bicentennial in 1976.



Coke Adds Life and Mean Joe Greene

In May 1976, The Coca-Cola Company introduced a new Coke ad campaign, touting the brand as the soft drink for all occasions. Aimed at the young and young-at-heart, the new campaign, "Coke Adds Life to …," was designed to show viewers that Coca-Cola added simple enjoyment to life.

The campaign itself was hardly simple. Development of "Coke Adds Life to …" began in 1973 with consumer research studies and lasted three years. The campaign's creative team came up with nearly a hundred copy lines, different ways of conveying what they wished to communicate as the basic promise of Coca-Cola. The group then talked to young people to get their reaction to the lines. The researchers from Coca-Cola and McCann-Erickson found that the lines "Coke adds a little life" or "Coke adds life" resonated with the public.

"Coke Adds Life" emphasized refreshment and tried to show Coke as the perfect accompaniment to food, fun, and leisure. The campaign highlighted the soft drink's role in many situations common to consumers around the globe, and the campaign's theme was adapted to appeal to a worldwide audience. While Coca-Cola often produced advertising in the United States that was adapted for international use, in 1978 the company adapted two overseas "Coke Adds Life" spots—from Italy and Brazil—for U.S. audiences. The Italian ad, "Flirting," follows the attempts of a young man to meet the one who will be his special girl. The viewer also sees the romantic pursuits of others both young and old. The message is that Coke helps pave the way to romance.

After "Coke Adds Life," the stage was set for a new advertising campaign for Coca-Cola, "Have a Coke and a Smile," which further emphasized the reliability and reward in drinking Coca-Cola. The new campaign was announced in commercials featuring Bob Hope and Bill Cosby, who explained the idea of "Have a Coke and a Smile" and encouraged viewers to watch for the new advertising.

The campaign centered around a single melody and one set of lyrics. For television, the music served as a background for dozens of vignettes featuring people from many walks of life drinking Coca-Cola while working or relaxing. One such ad, released on October 1, 1979, became one of the most famous Coke commercials, captivating audiences almost as much as had the "Hilltop" commercial eight years earlier. Written by Penny Hawkey, produced by Jean-Claude Kaufman, with art direction by Roger Mosconi and direction by Lee Lacy, the commercial known as "Mean Joe Greene" featured the defensive lineman of that nickname from the Pittsburgh Steelers professional football team and a twelve-year-old boy, Tommy Okon.

The casting of this ad was integral to its success. While The Coca-Cola Company had suggested Roger Staubach, the popular quarterback of the Dallas Cowboys, McCann opted to use the "Mean"-looking Steeler player instead. The ad was filmed over three days in May 1979 at a stadium in New Rochelle, New York, with Joe Greene and Tommy Okon performing countless retakes and Greene consuming eighteen 16-ounce bottles of Coca-Cola the final day alone.

The ad proved to be immensely popular, sparking a surge of letters to The Coca-Cola Company. It won the 1979 CLIO award in the world's largest advertising awards competition, and Greene took home the award for best actor in the same contest. The Coca-Cola Company followed up with a promotion to "win the shirt off my back," distributing thousands of replica jerseys to winning entrants. It also adapted the ad's concept to other parts of the world: Brazil, Argentina, and Thailand all produced versions of the commercial following the same plot line but featuring renowned football (soccer) players from each country, such as national soccer champion Niwat in Thailand.

"Mean Joe Greene" concluded its life as a made-for-TV movie that aired on NBC-TV on November 8, 1981. Joe Greene starred in the movie, but the part of the young boy was played by Henry Thomas, who later went on to star in E.T.: The Extra-Terrestrial. The movie recreated the ad and told the story of what happened after the ad ended.


Coke is It! and New Coke

In early 1982, Coca-Cola launched a new ad campaign, "Coke Is It!," with an emphasis on the product's qualities of taste and refreshment. The direct, positive statement "Coke Is It!" was meant to appeal to the forthright mood of Americans in the 1980s. "Coke Is It!" played on themes of previous ad campaigns, stressing the quality, the enjoyment, and especially the anticipation of drinking a Coca-Cola.

Ironically, the introduction of "new Coke" demonstrated in unexpected ways that after ninety-nine years, Coke had indeed become part of the tapestry of American life. When The Coca-Cola Company introduced a new taste for Coke in North America in 1985, television advertising helped launch it. The public, however, demanded the return of the traditional drink, so vehemently that the company was obliged to bring it back–renamed as "Coca-Cola classic."

Two Tastes and Two Campaigns

With both the new Coke and Coca-Cola classic in the marketplace, The Coca-Cola Company needed two distinct ad campaigns. Introduced in 1986, the "Catch the Wave" campaign for the new taste of Coke strove to be youthful, leading-edge, and competitive. For Coca-Cola classic, the "Red, White and You" campaign emphasized that drink's broad appeal and the emotional attachment it generated. At the same time, it attempted to celebrate contemporary American lifestyles and a modern American spirit. The campaign was aimed at an extremely broad audience: all soft drink consumers age twelve and up, with an emphasis on the 18-to-34 age group. In surveys at the time, seventy-five percent of respondents said they considered Coca-Cola classic a symbol of America. The "Red, White and You" theme was a natural consequence.

The campaign was created by the New York-based ad agency SSC&B Lintas.

SSC&B went to unusual shooting locations to produce four TV spots: "Rhythm and Blues," "Young Rock," "Big City Lights/Jazz," and "Small Town/Country." The shoots captured a mix of recognizable landmarks such as the Golden Gate Bridge and the Coca-Cola neon sign in New York's Times Square. The accompanying vignettes included Olympic gold medalist Valerie Brisco-Hooks, a glimpse of the Winter Garden Theatre set of the Broadway musical Cats, and early-morning neighborhood newspaper deliveries set against the San Francisco skyline. The casting for the ads was also unusual: along with traditional professional casting for actors and actresses, producers sought ordinary people playing everyday roles. The choreographer, for example, toured Southern California night spots looking for talented dancers.

The "Catch the Wave" campaign for new Coke, created by McCann-Erickson New York, aimed to connect with an emerging youth-oriented target audience. The contemporary nature of "Catch the Wave" sent what its creators hoped was a clear message: to drink the "in" taste, to identify with the "in" image, drink Coca-Cola.

Accordingly, to appeal to America's youth, The Coca-Cola Company enlisted an unusual "spokesman": Max Headroom, a computerized character with a synthesized voice. Headroom, created by London video producers Rocky Morton and Annabel Jankel, was originally intended for use in music videos. Actor Matt Frewer played the role and helped Headroom earn his status as a new-wave hero.

The Coke ad featuring Headroom was selected as the top commercial campaign of 1986 by Video Storyboard Tests, Inc. of New York. Headroom was so popular with the public that the Coca-Cola Atlanta Consumer Information Center received more calls about the character than it had for any previous Coca-Cola advertising campaign. Most callers wanted Headroom posters and buttons. Some asked about his background. And a few wanted to know if he had a girlfriend. Max Headroom returned in 1987 to star as spokesman in new "Catch the Wave" commercials for Coke, as well as a pair of "Coke Pop Quiz" ads. One ad, "He's So Hip," featured Headroom with basketball great Michael Jordan.

1988 saw a new advertising campaign, "Can't Beat the Feeling," which aimed to show Coca-Cola as an integral and natural part of people's lives in everything from family to youthful fun to a first date. The ads featured upbeat music and played on broadly appealing themes such as music, love and family. The campaign was launched in nearly one hundred countries, marking the first ad campaign for Coca-Cola outside North America in six years.



Playing with Polar Bears

In 1993, The Coca-Cola Company made a dramatic shift in its advertising by introducing the "Always Coca-Cola" campaign, by Creative Artists Agency and later Edge Creative. The campaign was a diverse one, with an initial run of twenty-seven commercials designed to appeal to specific audiences. The ads ran around the world and included a variety of innovative technical approaches, such as computer animation. One such commercial, "Northern Lights," introduced what would become one of the most popular symbols of Coca-Cola advertising: the animated polar bear.

When asked to develop an innovative commercial for Coca-Cola, creator and freelance writer/director Ken Stewart thought about drinking Coke at the movies. Mr. Stewart thought his yellow Labrador Retriever resembled a polar bear when it was a puppy and thought about how polar bears would go to the movies. Mr. Stewart brought the two concepts together in the commercial, "Northern Lights," which depicts a magical place where polar bears watch "movies" (the aurora borealis) and drink from bottles of Coca-Cola.

Mr. Stewart enlisted the help of animation company Rhythm & Hues to bring the bears to life. With advanced computers and state-of-the-art graphic programs, each ad required some twelve weeks to produce from beginning to end.

As with all television commercials, the process began with storyboards, which were illustrated by Eugene Yelchin from Mr. StewartÕs script. The storyboards divided the commercial's "story" into a series of scenes to fit the required thirty-second time slot. Next, Mr. Stwewart and Rhythm & Hues did pencil sketches to show how the polar bears would appear in each scene. These sketches were then refined, with detail and background added.

To get a better idea of how bears move their heads, bodies, and limbs, Mr. Stewart and the animators studied films and photographs of actual polar bears. Then, models of a bear were sculpted from clay. The models were transferred into three-dimensional images and stored as advanced computer graphics by creating a grid of vertical and horizontal lines on the bear image. Using a stylus connected to a computer, an animator plotted the points along the bear's head until an image of the model appeared on the computer screen. Once the image was refined and loaded into memory, the bear could be "moved," allowing it to walk, run, ski, or ice skate, as animators plotted its course on the computer. The bear's torso, head, and limbs had to be manipulated separately because unlike its real-life counterpart the computer-generated bear was not formed in one piece. Animators also finished creating the bear's fine motor movements during this stage of production.

Once the basic movements were completed, the rest of the picture was refined. Additional elements that were not computer-generated—such as a Coca-Cola bottle—had been scanned and stored in the computer and were added at this point. The bear's fur was added, its eyes were completed, the scenic background was "painted in," and the lighting details—intricate lighting complete with reflection and shadows—were fine-tuned.

While the animation was in production, Mr. Stewart worked with Glenn Rueger at Outside Music to compose original music, and created sound effects with Weddington Productions. In order to maintain the magical and ethereal quality of the world of the bears, Mr. Stewart chose to keep the music to a minimum. He used the synthesized music as a source of punctuation only, and kept the bears dialogue-free, except for the notable "oohs," "ahs" and grunts which Mr. Stewart created on a sound stage using his own voice, which was then altered through a computer to make him sound like the bears. The music and "dialogue," which were minimal by design, required months of work.

The polar bear was a considerable success, and went on to star in six commercials for Coca-Cola, including two ads for the 1994 Olympic Games in which it slid down a luge and soared off a ski jump. Bear cubs also made their debut for Coke in a holiday ad in which the bear family selects its Christmas tree.


International Approaches at the Millennium

Numerous other ads in the "Always Coca-Cola" campaign were introduced over the course of the next seven years (1993-2000). Appealing to people's enjoyment of the cola taste and the refreshment it provides, the commercials used a variety of approaches—humor, music, stories, animation, and even Shakespearean parody—in an effort to build on the emotional connection between Coca-Cola and its consumers.

On the international front, The Coca-Cola Company launched a television commercial in 1998 for the Muslim fasting month of Ramadan. Created by McCann-Erickson (Malaysia), the commercial was titled "Charity" and marked the company's first attempt to have one Ramadan television commercial for its entire worldwide market. In the past, the brand's Ramadan commercials had been made by local advertising agencies in each country, but the "Charity" ad ran in twenty Islamic countries including Malaysia, Indonesia, Pakistan, Bangladesh, the United Arab Emirates, Turkey, Egypt, Lebanon, and Morocco.

Eight months were required to execute the ad's story line. Initially, representatives from McCann-Erickson and Coca-Cola researched perceptions, similarities, and dissimilarities in the observance of Ramadan in several major Muslim cities. The research showed that the spiritual aspect of Ramadan—the emphasis on the values of love, charity and forgiveness—was universal. With this information, McCann senior account director Ahmad Shukri Rifaie came up with a simple story of charity and friendship brought to life by a child.

In the ad, a young boy and his mother bring small gifts to an orphanage: the mother gives a rug and basket of food and the boy donates a bottle of Coca-Cola. At the orphanage, the boy plays football with some of the orphans and makes friends with them. Later, after the breaking of the fast, the boy scampers back to the orphanage to break fast—and share the Coca-Cola—with his new-found friends. The commercial ends with the words "Always in good spirit. Always Coca-Cola'' (in Bahasa Malaysia, "Dengan Tulus Iklas. Pastinya Coca-Cola").

Following the success of this effort, The Coca-Cola Company launched an ambitious new international ad campaign in January 2000. Using the slogan "Coca-Cola. Enjoy," the campaign was designed to appeal to people all over the world by persuading them that Coke adds a touch of magic to the special moments in their lives. Believing that Coke is one of life's most common and affordable pleasures in many countries, the company conceived of the new slogan as an invitation to consumers throughout the world to enjoy Coca-Cola and life's simple pleasures. The theme was global, but the campaign used local resources in different countries to create individual commercials relevant to local tastes and cultures. And to unify the campaign with as much flexibility as possible, its creators developed a melody adaptable to a wide range of musical styles. Even as the campaign began, there were 140 versions of the tune set to words in forty languages.



The ads in the "Coca-Cola. Enjoy" campaign express its theme by trying to create images showing how Coca-Cola adds something special to everyday life. One spot by Leo Burnett USA, called "First Experience," follows a boy anticipating what a Coca-Cola will taste like by comparing it to a kiss. The spot was set in a small village outside Ouarzazat in a remote part of Morocco. The entire cast was from the village, which has no electricity, no television, and no Coca-Cola. The commercial was directed by John Madden, who directed the films Mrs. Brown and Shakespeare in Love.

John Madden also directed "Snowflakes," another spot by Leo Burnett USA. It shows a woman first as a young girl twirling in the snow and then as an adult on a beach, enjoying the moment—and a Coca-Cola. The actress playing the young girl is Italian and was cast in Milan, while the woman she grows up to be is played by a Greek actress who was cast in Athens. The commercial itself was filmed in two different areas in the Italian Alps and on a stage in Milan.

Saturday, January 20, 2007

Welcome to the Schmidt Museum of Coca-Cola


The Schmidt Museum of Coca-Cola® Memorabilia! Our 32,000 sq. ft. Museum Facility opened in late Fall 2005.
* Over 8,000 sq. ft. of exhibit space
* Added displays including antique Coca-Cola® delivery vehicles, turn of the Century bottling works, vending machines, toys, bottle displays, signs, expanded Santa exhibit and the only complete collection of classic Coca-Cola® serving trays known to exist.
* Expanded Museum Store
* 50's style Soda Fountain featuring Coca-Cola®, snacks and sandwiches
* Extended Museum hours
* Expanded Visitor comforts
* RV and Tour Bus parking

A Brief History of Coca-ColaHistory

Atlanta Pharmacist and former Confederate Captain in the Civil War, Dr. John Styth Pemberton was the inventor of the "secret formula" that would later become known as Coca-Cola. In 1886, while working on an elixir or in his words; "the ideal brain tonic", Dr. Pemberton took the basic formula of his earlier French Wine Coca, took out the wine, added extract of Cola nut, essential oils and other ingredients to concoct what his bookkeeper, Frank Robinson, later branded Coca-Cola ®. Mr. Robinson was also responsible for the Spencerian script used by Coca-Cola which was later to become the most recognized trademark in the world. John Pemberton died in 1888, and through a series of complicated transactions, another Atlanta druggist, Asa Candler, ended up with control of the Coca-Cola Company. It was through Candler's brilliant marketing that Coca-Cola's popularity began to spread throughout the country. Another stroke of marketing genius was introduced by Joseph Biedenharn of Vicksburg, Mississippi. In 1894, the Biedenharn Candy Company was the first to bottle Coca-Cola in the Hutchinson stoppered bottles. Two enterprising lawyers from Chattanooga, Tennessee named B.F. Thomas and J.B. Whitehead, recognized the potential of selling Coca-Cola in bottles and purchased the bottling rights for almost the entire country from an unconvinced Asa Candler. Coca-Cola's history is rich with intuitive company leadership. Under the leadership of men like Robert Woodruff, Coca-Cola became the most famous soft drink and trademark in the world.

History of the Schmidt Family and Coca-Cola

In 1901, Ben Thomas, one of the two lawyers who purchased the bottling rights to Coca-Cola, persuaded Frederick Schmidt to leave his managers position with Southern Railway Express of Chattanooga and to purchase a Coca-Cola bottling franchise in Louisville, Kentucky. In April of 1901, the first bottle of Coca-Cola was produced by the Coca-Cola Bottling Works 2nd under the ownership of Frederick Schmidt. In 1920, Fred Schmidt divided the Louisville Franchise Territory between his three sons and the Elizabethtown territory was given to, middle son, Luke Schmidt. Upon his death in 1941, his wife Irene managed the operation until 1955 when their son Bill, after completing college and serving as a pilot in the United States Air Force, returned to Elizabethtown to take over the family business. Bill and his wife Jan represent the third generation of Coca-Cola Bottlers. In the 1970's, Bill and Jan's two sons Luke and Larry began work at the bottling plant. Luke and Larry represent the fourth generation of the Schmidt family to be active in the business. In the mid-1980's, Luke left the CCBC in Elizabethtown to organize and head up an entity dedicated to recycling plastic beverage containers. Larry remained active in the management of the business - becoming president in the mid-1990's and stayed in the position through the sale of the Coca-Cola franchise in 1999 and the subsequent sale of the bottling and canning facility in 2004.

History of the Schmidt Museum

With completion of the third Elizabethtown Coca-Cola Bottling Plant in 1971, Bill and his wife Jan began to search out a few Coca-Cola antiques to decorate office spaces. By 1976, their passion for collecting Coca-Cola memorabilia was filling warehouses. In 1976, dedicated space was created in the bottling plant for the Schmidt Museum Collection of Coca-Cola Memorabilia, which opened to the public in March of 1977. After 25 years and almost a million visitors from around the world, the Museum closed in November of 1999 due to changes in State safety regulations. In April of 2001, The Schmidt Museum of Coca-Cola Memorabilia reopened in the Elizabethtown Tourism and Convention Center located at 1030 North Mulberry. The interim museum exhibited over 1100 rare artifacts from a collection, which now numbers well over 80,000 items. In the Fall of 2005 the Schmidt Museum of Coca-Cola Memorabilia moved to its new 32,000 sq. ft. museum/warehouse facility located at 109 Buffalo Creek Drive, Elizabethtown. KY.

Official Site

Saturday, January 13, 2007

Caffeine: Does it Add Flavor?


Coca-cola are under fire for claiming that caffeine “adds flavor to cola”.

A study published in the journal Appetite shows that people cannot tell the difference between a decaffeinated cola and one spiked with caffeine.

In the study, outlined in the American journal Appetite, 30 people were given three small cups of commercial decaffeinated Coke.

Researchers spiked one sample with caffeine and asked participants to spot the difference. Nobody could tell the difference in repeated tasting. (via The Age)

The study author claims it is “unethical for companies to use caffeine if it did not enhance flavour and could lead to young people becoming addicted to sugary drinks”.

The intriguing thing is that the subjects in the study could detect the caffeine in a very sweet solution.

Saturday, January 06, 2007

Starbucks, Coke stir up ready-to-drink market

Dallas Morning News

SEATTLE – Even in this caffeine-soaked city, there are times when Tommy Key can't make it to a Starbucks for his favorite pick-me-up.

On those grim mornings, Mr. Key's stand-in is Starbucks' bottled Frappuccino, a cold milk-and-coffee concoction that he grabs on his way out the door.

"It's a quick fix, is what it is," Mr. Key, 43, said as he loaded a 12-pack into his cart at a Costco warehouse. "This will last me a good month or two."

Hurried coffee lovers will have more choices for those quick fixes in the coming year, as Starbucks Corp. and others angle for the growing slice of consumers who get their java from the grocery store or vending machine.
Starbucks products

Starbucks products


With its Frappuccino, Iced Coffee and Doubleshot, Starbucks accounts for 90 percent of the ready-to-drink coffee market in the U.S. But Coca-Cola, teaming up with Caribou Coffee, aims to slurp up its share.

Beverage titan Coca-Cola Co. plans to push further into the ready-to-drink coffee market this summer, introducing a new iced drink under the banner of the country's No. 2 coffeehouse chain, Caribou Coffee Co.

Coke also hopes to move another drink, the coffee-and-chocolate flavored Godiva Belgian Blends, into national distribution.

Starbucks, whose Frappuccinos and other packaged drinks dominate the market through a partnership with PepsiCo, is high on the future of its newest iced coffee offering.

The companies are also preparing to roll out a long-sought hot vending machine that will dispense Starbucks coffee in recyclable 9-ounce steel cans with insulated labels.

The flurry of activity might not exactly recall the cola wars of years gone by. But Coke's aggressiveness shows how important coffee-laced drinks have become, along with other beverages that deviate from the traditional soda recipes.

"Any of the major beverage companies, and smaller companies as well, are aware of the consumer trends for healthier products, more variety," said Gary Hemphill, managing director of Beverage Marketing Corp.

Carbonated soft drinks still tower over the beverage market, with a 2005 retail value of $68 billion, but sales are declining for the first time in decades, Mr. Hemphill said.

Alternatives have been picking up the slack.

Energy drinks and bottled water are particular leaders, but ready-to-drink teas and coffees are also players.

The packaged coffee market alone is worth just under $1 billion in the U.S. and has seen several years of double-digit growth that analysts and executives expect to continue.

Officials also point to Japan, where Coke's Georgia Coffee brand dominates a market 12 times the size of the U.S. market, said Gerry Lopez, Starbucks' senior vice president of global consumer products.

"The American consumer has become more like the Japanese consumer in that they want to try new things. They like experimenting," said John Sicher, editor and publisher of Beverage Digest.
New brews

"Companies like Coke and others will continue to try to crack the secret to the ready-to-drink coffee market," Mr. Hemphill said. "A lot of companies have tried over a number of years now, with mostly limited success."

Starbucks and Pepsi jointly operate the North American Coffee Partnership, which controls about 90 percent of the U.S. market for ready-to-drink coffee.

"If the Starbucks branding wasn't enough to help me, I have this dynamic of people looking for this variety in noncarbonation," said Mr. Lopez, who oversees Starbucks' side of the venture. "It's really the fact that the two have come together that has made it such great timing."

Although the drinks are sold under the Starbucks brand, it's Pepsi's distribution system that makes bottled Frappuccinos and other drinks available in places where a Starbucks coffee shop isn't within driving distance.

"We're stronger together than either of us could be separately," Mr. Lopez said. "It's worked very well over the years."

Coke appears to be taking a similar tack with its newest coffee drinks.

The partnership with Caribou combines a large coffee brand – more than 400 coffeehouses, mostly in the Midwest and Southeast – with Coke's bottling and distribution force.

Coke and Caribou's first offering will be a chilled, slightly sweet dairy-and-coffee blend, said Michael Coles, chairman of Minneapolis-based Caribou.

"There are several drinks that will be coming," he said.
Coke's move

It's a move that Coke needs to make, observers say, and one that the Atlanta behemoth can carry out.

"The bottom line is, we're going to see Coke more aggressive, probably even much more aggressive, in ready-to-drink coffee starting in 2007," Mr. Sicher said.

But, he added: "The Pepsi-Starbucks joint venture's lead is safe for many years to come."