For decades, behind Coke as #1, Pepsi has been the #2 soft drink in the U.S. Now, Diet Coke has surpassed Pepsi, meaning that both Coke and Diet Coke take the top two spots and Pepsi moves to third.

According to Beverage Digest, Pepsi lost 0.4 market share in 2010, bringing them down to 9.5% of the soft drink category. On the other hand, Coke has a 17% share and it’s partner in crime, Diet Coke has 9.9%.

Marketing strategists and analysts are now calling into question the “Pepsi Refresh Project” campaign, launched last year. The concept is to help “Refresh” the world and make it a better place by taking ideas from consumers and implementing them in their communities, funded by Pepsi. It’s a very socially responsible thing to do, but will it help sell more Pepsi? I don’t think so. Neither does John Sicher, the editor and publisher of Beverage Digest, as he explains: “In the cola wars, the Refresh Project by itself isn’t enough to market Pepsi’s cola brands. They need, in addition, more product-oriented advertising and marketing. I think that the 2010 results are probably a wake-up call for Pepsi.”

Below is a video promotion for Pepsi’s Refresh Project. Joe Jacuzzi, a Pepsi spokesperson has said the campaign “has provided an unbelievable response,” and that the “fact of the matter is it’s a long-term play.”

Pepsi Refresh Project

Pepsi is definitely not giving up the fight. They are increasing spending by 30% this year, with new ads for Pepsi, Diet Pepsi, and Gatorade. In addition, they are investing $60 million into a sponsorship and product integration with “X-Factor,” Simon Cowell’s latest singing competition. As you know, American Idol is sponsored by Coke. Oooh, let the battle begin!

Jacuzzi commented on moving into the third spot and this is what he had to say:

“I don’t think that we’d view this as a blow. We’re looking at our total position. Consumers want a wide range of products for a wide range of occasions. And we’re in a great position to satisfy them with that. Today we’re fighting a totally different battle on a much bigger battlefield than just colas, though we are completely committed to carbonated soft drinks.”

Check out this Diet Coke ad from 2010 that I think is bang on:

Diet Coke – Stay Extraordinary


“Extraordinary people preparing to go off and do extraordinary things, large and small.”

My drink of preference? I am into Coke Zero these days, but alternatively, I like Diet Pepsi.

Blog Widget by LinkWithin