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Coca-Cola Simon Cowell The X Factor

Simon Cowell show to lead push for Pepsi's new mid-calorie cola?

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By The Drum Team, Editorial

April 3, 2011 | 3 min read

Can Pepsi find the 'sweet spot' with this new middle of the road cola? Rumour is they are going to have a go, on the back of the new Simon Cowell X factor show in the US

The 60-calorie-per-can drink is expected to be sweetened with a blend of high-fructose corn syrup and artificial sweeteners, says the American magazine Beverage Digest.

You may think you have heard all this before. In fact, it will be the brand's third try at such a product. In the mid-1990s, there was the short-lived, 70-calorie Pepsi XL, "X" for excellent taste, "L" for 50% less sugar. In 2004, along came 70-calorie Pepsi Edge, while Coca-Cola had C2. They disappeared from shelves in 2005 and 2007, respectively.

Editor of Beverage Digest John Sicher said the goal was clear: "Pepsi and Coke need to keep consumers drinking their colas." In 1995, colas accounted for about 65% of carbonated soft drinks in the U.S. Today, it's about 55%.

"When some consumers switch from regular colas, they try diets, don't like the taste and move on to water or other categories," Mr. Sicher said. "This is an attempt by Pepsi to come up with another tool to keep consumers in their cola franchise.

"The theory is that a mid-cal can taste better than a diet to some consumers and appeal to consumers who are moving away from the regular brands."

With the growing array of choices -- Pepsi, Diet Pepsi, Pepsi Max and now Pepsi Next - getting the message right will be critical . "Regular" and "diet" colas are well understood, but the idea of a mid-calorie cola risks confusing consumers.

So why try again? "There exists pent-up demand for better tasting lower-calorie products," said Bill Pecoriello, CEO of Consumer Edge Research.

Mid-calorie colas may appeal to older drinkers than full-calorie colas - but younger than those who veer toward diets. In theory they'll appeal equally to men and women, with a sweet spot among 25- to 34-year-olds, according to Mr. Pecoriello.

A major advertising and marketing push is said to be planned for Pepsi Next, probably involved with Pepsi's "X Factor" promotion. Pepsi expects to spend more than $60 million on a sponsorship and integration with Simon Cowell's new US singing competition.

A Coca-Cola spokesman declined to comment on Pepsi Next or any plans Coca-Cola might have for a mid-calorie cola.

"We do not see Coca-Cola being a quick follower on mid-calorie colas," said Mr. Pecoriello.

Coca-Cola Simon Cowell The X Factor

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