Coca-Cola (KO) to challenge Starbucks (SBUX)

Here's something to read while sipping your morning coffee! Coca-Cola simply refuses to be KO'd. The company got a bit of good press recently when an Indian newspaper reported pesticide levels in Pepsi products three times over the limit, while Coca-Cola passed the tests. I'm still dizzy from wondering why pesticides were found in the first place! This may be the nail in the coffin for some faithful consumers out there.

But, maybe Coca-Cola doesn't want you drinking carbonated beverages anymore. As my colleague Michael Canfield covered Sept 1, as baby boomers move towards healthier choices, Coca-Cola is eying Starbuck's lucrative territory. Coca-Cola is going premium with high-end retail outlets offering a variety of freshly brewed espressos, chai teas, cappuccinos and lattes. A recent press release announced the launching of the "Far Coast" brand to fill this niche market. After all, if you're willing to hand over $4, $5 to buy a plastic cup (my theory), why not hand it over to Coca-Cola? Are the coffees really that different?

Coca-Cola chose the multicultural city of Toronto, Canada (where I currently live) to be the launching pad for its "concept store" on Bloor Street yesterday. In a country fanatical about its Tim Horton's coffee, the premium market place has seen much competition. Starbucks has been able to carve out a very respectable market share. Therefore, Far Coast will have to do some serious catching up! Coca-Cola revealed that more stores will be opening soon in Oslo and Singapore (coincidently my birth country!).