Dave Stancliff Coca-Cola sees big profit in little drops despite risk to other units blogarama.com

Saturday, September 8, 2012

Coca-Cola sees big profit in little drops despite risk to other units

Coca-Cola will introduce its Dasani Drops, which can be added to water for some on-the-spot fruity flavor. And Coca-Cola is betting that there's big potential for growth.   ASSOCIATED PRESS

Coca-Cola’s newest drink won’t come in a bottle or a can. Also, people will only need a squirt or two to quench their thirst.

In the coming weeks, the world’s largest beverage company is introducing its Dasani Drops, which can be squeezed into water for some on-the-spot fruity flavor. Coca-Cola is betting that there’s big potential for growth.

Coca-Cola says the drops will boost consumption of water, whether it’s tap water or bottled. Ideally, of course, people would use the drops with its Dasani water, which already saw sales volume rise 13 percent in the first half of the year, according to industry tracker Beverage Digest.

Overall consumption of bottled water has also been growing, although at a much slower pace than in the early 2000s, according to Beverage Digest, which reported last week that Coca-Cola planned to introduce the drops.

The drops may hurt Coca-Cola’s other units, however. The company also makes enhanced waters, such as Vitaminwater Zero. (Read story here.)

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