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Red Bull enters the cola wars

Red Bull ColaCoca Cola (NYSE: KO) and PepsiCo (NYSE: PEP) better look out. Red Bull GmbH, the Austrian company behind bestselling energy drink and household name Red Bull, wants to try its hand at selling cola. The new drink, shown at right, will launch in seven countries over the next several months, with the US launch slated for June, according [subscription required] to the Wall Street Journal.

According
to BrandWeek, "Unlike Coca-Cola and Pepsi, Red Bull Cola will be 100% natural and command a premium price. Its formula will consist of kola nut and coca leaf."

The all-natural formula could be a big advantage for Red Bull,wcreating the perception of a more healthy beverage in the same way that vitaminwater became a big hit among people looking to drink healthier, in spite of being pretty high in calories.

Will Red Bull have success? That's hard to say without knowing what it tastes like, but with a strong brand and rapid growth, Red Bull could present the most serious challenge to the cola leadership of Coke and Pepsi in a long time -- possibly ever.

With Coke and Pepsi both experiencing significant declines in sales last year, this could be the perfect time to kick them while they're down.

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Last updated: October 11, 2008: 10:48 AM

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