NY Obesity Tax Dies

Two months after introduction the NY State Obesity tax proposal has died.

No doubt emboldened by the success of cigarette taxes reducing demand for tobacco, NY state thought something similar for sugared soft drinks may work too. Nice idea in principle, but a combination of consumer outrage (75% negative sentiment), perceptions of fairness, and challenges of executing the scheme brought it down.

There is no doubt that some government-led social engineering in the anti-obesity battle is needed, but this tax solely on sugared soft drinks was poorly thought through and the plan got what it deserved.

Breathtaking Pepsi...

The disclosure of the Arnell Group's Breathtaking design strategy for Pepsi was leaked to the web yesterday to a flurry of comments from "they must be smoking something" to "is that all you get for $1M?"

If you have ever designed a logo for a brand, you will know that you feel the pressure of your colleagues and the consumers that use the brand - they have a high expectations: They all want to be surprised and delighted.

Then there is also the pressure of the creative people engaged with the process who want to leave their own mark on a project... and finally your own thoughts and feelings that hopefully are a vision for the brand. You ask for input from all these sources, and then hope to build consensus behind the direction you want to take.

The deck rationally steps the business through a process that takes the design from "convention" towards "innovation", and roots those steps in both the history of iconic Pepsi designs, and the universal lessons of design. It effectively takes debate out of the process, and presents the new brand design as a predetermined event. Tough to argue with, impossible to debate.

It is a high-minded concept, well argued. But whether all of this is necessary to update the logotype and globe... well, I will leave that up to you to decide.

Protein's Rise Continues...

USA Today has acknowledged the growth of protein as a sought after nutrient in this article today.

However there still remains an open question on how much protein is beneficial. The RDA of protein is sex and size dependent - from 30g a day for a 110 lb woman to 60g a day for a 200 lb man. The sports nutrition wisdom is that it is 1g for every pound of your weight...

In beverages there is a great range from 5g in K2O to 40+g in Muscle Power. But I believe that 5g-10g has a positive impact from my personal experience, and there remains a big opportunity for a great tasting big idea for snacking protein...

Vitamin Water's NCAA Ruling - Blessing or Curse?

Vitamin Water has been brilliantly positioned. Water in the name to imply hydration; Vitamins for easy to accept functionality; and implied energy in the flavor names. This success has impacted brands like Gatorade (see posts below), and has opened the door for other functional products to come forward.

But Iits been an odd time for Glaceau. First the Center for Science in the public interest claims Vitamin Water is "not healthy", then the NCAA makes a ruling that 8 of VW's flavors are too functional, and may push student athletes to break the NCAA's impermissable substances code.

Proposed locker room poster from National Center for Drug Free Sport.

From Ad Age - The Rescue and Energy flavors are both banned because they contain caffeine or guarana-seed extract, according to the NCAA website. The other four beverages, B-relaxed, Vital-T, Balance and Power-C, include impermissible substances such as Taurine, L-theanine, green-tea extract and glucosamine. Other impermissible substances include various amino acids, protein powders and ginseng. An impermissible substance is not able to be provided by coaches or trainers to students, but players are able to purchase products with impermissible substances.


So, does this hurt the brand? Well at face value, this is undoubtly negative coverage. But I think this may help in the recent challenge the brand has faced. Consumers are doubting that the products are truly functional. "Is it just adult Kool Aid?" I am often asked.

If the real issue with Vitamin Water is that consumers do not believe in the ingredients/benefits the products offer, independent verification that the ingredients are present and must have an impact. This story is likely to be noticed by those target consumers who want that extra function from their drinks.

So, to back answer the original question: This coverage is a blessing in disguise...

The End of the Classic Era

Very quietly, KO is removing the word "Classic" from cans of Coke Classic, finally ending the New Coke saga. If you don't know the full story, the Wikipedia entry is a good start.

My memories of New Coke are still pretty fresh. I was an foreign student at college in the US in 1985 when New Coke replaced the existing Coca Cola. My memory is that New Coke tasted very similar to Pepsi, but with less burn - and more sweet.

But to many of my friends this was a betrayal. They worried that they would never find their favorite Coke again.

Immediately there was hoarding, there was a black market, there was even a protest!

And when Coke Classic was launched 77 days later, there were high fives and celebrations.

On reflection this was all a storm in a teacup (or bubble glass?).

But was this a real change to beverages? The answer was no. It would take the success of Snapple, Sundance, AriZona to materially impact the market, five years later...

RIP New Coke, and Coke Classic. Its been a long strange trip.

Umair Haque - Prophet

Every time I read Umair's blog I find myself nodding and getting inspired. Why? Because he has tangible ideas of a better, more creative, way of doing business. A way that breaks the shackles of bureaucracy, and allows the triumph of the good idea rather than the expeditious idea: Here is an example...

In the 20th century, marketing was the pusher of a consumption addiction: Madison Ave's game was to create perceived value by "differentiating" the same razors, blades, and toothpaste. At the Lab, we've found that companies who create perceived value are significantly less profitable and more vulnerable than companies who are rethinking marketing to create real value.

I am a believer...

New Year, New G...

In a tumble of public statements and press releases Pepsico has stepped-up its response to the disappointment of last year's earnings. The messsage is clear: 2008 is now gone - say hello to 2009, with a brew-ha of new CSD graphics, stevia sweetened drinks, and cosmetic changes to Gatorade.

I find the Gatorade changes to be the most interesting. After 40+ years of dominance in "sports", Vitamin Water through the Coke system is starting to impact Gatorade's dominance. Gatorade is a drink for athletes, but it also gets sizable consumption from consumers looking for non-sports refreshment. Vitamin Water is tapping this market with its promise of added Vitamin functionality.

Having done my share of focus groups on sports and refreshment drinks, a couple of things remain on my mind:
1) Women don't like Gatorade's salty aftertaste or in-your-face attitude and,
2) The neon colors of Gatorade make everyone think the beverage isn't that good for you.

These two dynamics make Vitamin Water an attractive alternative.

So, what is Gatorade's response? - To be more Gatorade than ever:
New more aggressive graphics, and rebranding of sublines like Gatorade Rain to Gatorade "No Excuses", and Gatorade AM to Gatorade "Shine On". More here.

Are the new base graphics cool? Yes, very striking. Probably helps the core flavors - very true to the brand and the experience.

Will rebranding the sublines help? I doubt it - they feel very short term at best, and cliched at worse: When will we see "Feel The Burn" or "Go For It"...

Will these changes address the structural consumer weakness Gatorade faces? I doubt it. But we will watch all this with interest

Here is the commercial being used to launch these changes...




Foods, Fluids and Beyond Blog by Neil Kimberley at www.foodsfluidsand beyond.com is licensed under a Creative Commons Attribution 3.0 United States License.