Coke considers Coffee-Flavored Cola
By Scott Leith
Cox News Service


ATLANTA - Coca-Cola's latest experiment might be enough to give you the jitters.

The soft drink maker has been tinkering with a coffee-flavored cola, using the possible brand name Blak.

The introduction of such a product might be a caffeinated long shot. But analyst Bill Pecoriello of Morgan Stanley -- who reported about Blak on Tuesday -- noted that Coke is working on a lineup of new products in hopes of reviving sales.

"The Coke system is making good on its promise to investors to step up innovation in the U.S.," Pecoriello said in a report.

Just last week, for example, Coke announced plans to introduce Coca- Cola With Lime by the end of March. Bottlers already are starting to distribute a new energy drink, Full Throttle, to take on rival Red Bull.

Coke spokesman Kelly Brooks, following the company norm, had little to say about the prospects for Blak. "We're always developing and testing a wide range of beverage innovations," he said.

Coffee-flavored colas haven't hadn't had a good track record, however. Pepsi test-marketed one in 1996 under the name Pepsi Kona. It failed, and these days resurfaces only as a collectors' item.

Nonetheless, Pecoriello said coffee-based beverages are an underdeveloped product category in the United States. Frappuccino, sold via a partnership of Starbucks and Pepsi, is easily the biggest seller when it comes to ready-to-drink bottled coffee.

Coke could take a look at that niche, too, if it creates a new bottled coffee to replace its failed Planet Java.



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