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MEDIA AND MARKETING

Coke not going halfway in area C2 campaign

Jim Kirk
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May 25, 2004

Coca-Cola Co. has its eye on 750,000 consumers in Chicago.

That's how many people the company wants to sample its new midcalorie cola, C2, which officially launches Tuesday.

The huge sampling campaign in the Windy City, and a handful of other markets around the country, is part of the company's biggest new-product rollout since Diet Coke hit store shelves more than 20 years ago.

And it couldn't come at a better time.

With sales of brown colas, including Coca-Cola Classic and PepsiCo's Pepsi-Cola, still flat or trending down in some cases, Coke and Pepsi are counting heavily on the midcalorie segment to attract consumers to colas.

C2 and Pepsi's midcalorie product, Pepsi Edge, don't hit store shelves until mid-June. But Coca-Cola, looking to get a leg up in the new cola war that's been brewing for about a year, was first out of the gate.

So on Monday, with "American Idol" stars (if there is such a thing) Paula Abdul and Ryan Seacrest in tow, Coca-Cola unveiled one of its most aggressive marketing plans in years behind the brand.

On Tuesday, ads featuring the Rolling Stones' "You Can't Always Get What You Want" can be seen during the finals of Fox Television's "American Idol."

A second ad, featuring "I Want to Break Free" by Queen, airs in July.

Both ads, according to descriptions by Coca-Cola, show people enjoying spontaneous, "liberating moments in life." The ads, from WPP Group's Berlin Cameron Red Cell, carry the tagline: "Half the carbs. Half the cals. All the great taste."

Interest in the midcalorie segment has skyrocketed during the past several months as obesity issues, and low-carb diets, have taken center stage.

At the same time, the beverage industry has been experimenting with sweetener blends, including mixing high-fructose corn syrup with sugar substitutes, in an effort to attract drinkers who don't want a full-calorie cola, but don't want to give up the taste.

A 12-ounce can of C2 will have 68 calories and 18 grams of carbohydrates, compared with 150 calories and 41 grams of carbohydrates with original Coke, according to company figures.

Executives at Coca-Cola believe that's about one-third of the potential market of cola drinkers, who either switch between a full-calorie and a diet cola or just opt out of the cola category.

"We're seeing similar trends across all different categories as consumers move to lower their carb intake," said Andy McMillin, head of marketing for Coca-Cola's Lakeshore division, which includes Chicago.

But as Anheuser-Busch found out when it introduced a lower-carbohydrate beer, cannibalization of sales cannot be ruled out.

Michelob Ultra ate significantly into sales of Bud Light when Anheuser-Busch launched Ultra a year ago.

C2 is Coca-Cola's fifth new product in the cola category in the last three years.

Garry watch: With one deadline already passed for Garry Meier to accept a new deal to remain as afternoon co-host at WLS-AM 890, the door at the station is being held open by his partner, Roe Conn, whose own deal with the station is up June 15. As of press time Monday, there was still no change. But insiders remain hopeful.

Meier and Conn, who consistently post some of the best afternoon talk ratings in the city, are looking at a substantial pay raise if they continue at WLS. Sports talker WSCR-AM 670 remains interested if they don't.

Separately at WSCR, midday host Dan Bernstein and management remain at loggerheads in new contract talks. Bernstein, off the air for a week since his last deal expired, could face a take-it-or-leave-it offer from management soon.

On the move: Dustin Cohn, a managing director on PepsiCo's Gatorade business at advertising agency Element 79 Partners, moves to Gatorade as director of equity communications. He replaces Liz Bardetti, who is retiring. . . . Lisa Sallwasser, formerly creative director at Marketing Support Inc., joins Point B Communications as executive creative director.

Subway splits with Fallon: After several acrimonious months, Subway Restaurants and its advertising agency Fallon Worldwide have parted ways. Minneapolis-based Fallon had handled the creative portion of the company's $220 million account. Cracks in the relationship started soon after the agency launched a campaign that featured the theme: "It's OK, I just had Subway."

Copyright © 2004, Chicago Tribune


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