Sprite and 7UP draw battle lines

by Jemima Bokaie, Marketing 19-Feb-08, 08:45

LONDON - Coca-Cola and Pepsi are preparing for a clash in the lemon-and-lime carbonates market over the next two years by increasing investment in their respective Sprite and 7UP brands.

Coca-Cola plans to spend heavily on the global relaunch of Sprite next year in a bid to boost sales following a period of year-on-year decline.

Meanwhile, Pepsi is to follow its relaunch last May of 7UP Free, which contains no sugar, preservatives, colourings or caffeine, with further additions.

'We are investing in the 7UP brand portfolio and are planning to launch more products in the UK,' said Pepsi marketing director Bruno Gruwez.

Sprite has been losing share of the lemon-and-lime carbonates category; in 2006-2007, it fell 5.9% to 58.5% after Coca-Cola cut adspend for the brand.

However, Alessandro Andolina, the director of creative development at Coca-Cola European Union Group, confirmed that work was being developed for Sprite ahead of a global relaunch, which would probably take place next year.

Coca-Cola has already unveiled Sprite Yard, a social networking site aimed at 13- to 25-year-olds, in the US and China, but the site has had little support in the UK.

Pepsi's relaunch of 7UP Free was backed by a £1.8m ad campaign by Abbott Mead Vickers BBDO. The work, featuring brand icon Fido Dido, was the soft drink's first UK advertising activity in four years.Coca-Cola launched Sprite to rival 7UP in 1961.

It was followed in 1974 by a sugar-free variant, later rebranded Sprite Zero. In 2005, it launched energy drink Sprite 3G, which it axed less than two years late.

Data File: Fruit-flavoured carbonates

In 2006, take-home sales of fruit-flavoured carbonates declined by 9% year on year to £328m.
The category has been hit by the growth of wellbeing drinks including pure juice, smoothies and water.
In the year to 8 September 2007, Sprite's share of the category fell by 5.9% to 58.5%. 7UP grew its share by 5.5% to 37.1% over the same period.