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    Diet Coke Wins Battle in Cola Wars - March 17, 2011

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    Shaishav Dabhi
    Diet Coke surpassed Pepsi as the second best-selling carbonated soft drink in the U.S. in 2010, marking a win for Coca-Cola in its long-running rivalry with PepsiCo. While Diet Coke and Pepsi were neck-and-neck the prior year, data expected to be released will confirm Diet Coke pulled ahead in 2010. This comes as PepsiCo focused more on its Refresh Project charitable initiative than traditional advertising, while Coca-Cola ramped up TV marketing for its core brands like Coke. PepsiCo plans to boost promotion of Pepsi with more ads, including during shows like X Factor to compete with Coca-Cola's sponsorship of American Idol.

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    Diet Coke Wins Battle in Cola Wars - March 17, 2011

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    Shaishav Dabhi
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    Diet Coke surpassed Pepsi as the second best-selling carbonated soft drink in the U.S. in 2010, marking a win for Coca-Cola in its long-running rivalry with PepsiCo. While Diet Coke and Pepsi were neck-and-neck the prior year, data expected to be released will confirm Diet Coke pulled ahead in 2010. This comes as PepsiCo focused more on its Refresh Project charitable initiative than traditional advertising, while Coca-Cola ramped up TV marketing for its core brands like Coke. PepsiCo plans to boost promotion of Pepsi with more ads, including during shows like X Factor to compete with Coca-Cola's sponsorship of American Idol.

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    Diet Coke Wins Battle in Cola Wars_March 17, 2011

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    Diet Coke surpassed Pepsi as the second best-selling carbonated soft drink in the U.S. in 2010, marking a win for Coca-Cola in its long-running rivalry with PepsiCo. While Diet Coke and Pepsi were neck-and-neck the prior year, data expected to be released will confirm Diet Coke pulled ahead in 2010. This comes as PepsiCo focused more on its Refresh Project charitable initiative than traditional advertising, while Coca-Cola ramped up TV marketing for its core brands like Coke. PepsiCo plans to boost promotion of Pepsi with more ads, including during shows like X Factor to compete with Coca-Cola's sponsorship of American Idol.

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    Download as docx, pdf, or txt
    50 views2 pages

    Diet Coke Wins Battle in Cola Wars - March 17, 2011

    Uploaded by

    Shaishav Dabhi
    Diet Coke surpassed Pepsi as the second best-selling carbonated soft drink in the U.S. in 2010, marking a win for Coca-Cola in its long-running rivalry with PepsiCo. While Diet Coke and Pepsi were neck-and-neck the prior year, data expected to be released will confirm Diet Coke pulled ahead in 2010. This comes as PepsiCo focused more on its Refresh Project charitable initiative than traditional advertising, while Coca-Cola ramped up TV marketing for its core brands like Coke. PepsiCo plans to boost promotion of Pepsi with more ads, including during shows like X Factor to compete with Coca-Cola's sponsorship of American Idol.

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    Diet Coke Wins Battle in Cola Wars

    by Mike Esterl
    Thursday, March 17, 2011

    provided by

    U.S. sales of Diet Coke overtook those of Pepsi-Cola for the first time in 2010, making the diet
    soda the No. 2 carbonated soft drink in the country behind Coca-Cola, industry data are expected
    to confirm Thursday.

    Occupying the top two rankings would mark a historic win for Coca-Cola Co. (NYSE: KO -
    News) in its decades-old rivalry with PepsiCo Inc. (NYSE: PEP - News), which has seen its
    market share slip in recent years and is trying to retool its marketing.

    The two companies have fought over the past decade to win market share from one another as
    cola sales overall have dropped.

    [More from WSJ.com: Subway Runs Past McDonald's Chain]

    Pepsi-Cola commanded only a slight lead over Diet Coke in 2009, when each brand had slightly
    less than a 10% market share among carbonated soft drinks. That year, regular Coke won the
    cola wars with a 17% market share, according to Beverage Digest, a trade publication and data
    service.

    But market-share data to be released Thursday by Beverage Digest is expected to confirm Diet
    Coke pulled ahead in 2010.

    The signs are there: Last month, Beverage Digest reported Pepsi-Cola's market share fell 0.5
    percentage point while Diet Coke slipped just 0.1 percentage point in U.S. supermarkets,
    convenience stores and other retail outlets. This week's comprehensive data will also include
    food-service data, including restaurant fountain sales, where Coca-Cola is larger.

    [More from WSJ.com: A Subway, but no McDonald's, in Tanzania]

    PepsiCo made a big bet in 2010, when it didn't market its flagship cola on the Super Bowl or in
    other TV spots. Instead, it launched the Refresh Project, an online charitable-giving program that
    disbursed $20 million in donations "for refreshing ideas that change the world.''
    Some industry analysts have questioned whether that program would translate into cola sales.
    PepsiCo says that the initiative improved its corporate profile as more than 87 million votes were
    cast for charitable projects, and that it will help boost revenue in the long run.

    Coca-Cola has ramped up its traditional TV marketing in recent years to focus on its core brands.
    After a nine-year hiatus, it has advertised its flagship Coke brand during the past five Super
    Bowls. It has also pitched Diet Coke during the past five Academy Awards.

    PepsiCo says it will continue its Refresh Project but also plans more traditional ads to try and
    boost Pepsi-Cola and Diet Pepsi.It plans to promote Pepsi-Cola on "X Factor," a televised music
    competition created by Simon Cowell to compete against "American Idol," which Coca-Cola
    sponsors.

    [More from WSJ.com: Is Happiness Overrated?]

    PepsiCo also returned to the Super Bowl this year to promote Pepsi Max, a diet cola that targets
    males and competes against Coke Zero, another diet cola.

    Increasing the stakes, Coca-Cola and PepsiCo also spent billions of dollars last year to acquire
    their largest independent U.S. bottlers in a bid to bring drinks to stores more quickly.

    Write to Mike Esterl at mike.esterl@wsj.com

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