Earlier this morning, I was looking through some news items from the past several days when I came across one at Brandweek that both interested and delighted me. The article concerned an online survey done at teen social networking site Habbo. Teenagers between the ages of 11 and 18 named some of their favorite brands. Companies like McDonald's (NYSE: MCD) and Nike (NYSE: NKE) did very well in the poll. But the company that delighted me that also was a winner in the survey was Coca-Cola (NYSE: KO).
One of the reasons why I was so happy can be found in the disclosure at the bottom of this piece -- I own shares of the beverage icon in my long-term portfolio. I suppose that would be the top reason, but here's the thing -- it's been my experience that the youth of America don't like Coca-Cola that much. Well, I should state that the youth that I know don't respect Coke (and they should, it's a delicious, refreshing experience that has no equal!). When it comes to soda, PepsiCo (NYSE: PEP) unfortunately seems to be the brand of choice among the younger folk in my area (don't take this as any sort of statistically scientific statement, please). Come to think of it, even older people that I know seem to prefer Pepsi. It really is a disconcerting situation. Coca-Cola stockholders realize that young people must be marketed to in a powerful manner so that future returns on invested capital in Coke's flagship brands can help drive value. And let's not forget that Red Bull wants to enter the cola wars -- see Zac Bissonnette's post about this bubbly new development.
Of course, as the article implies, the survey results don't necessarily translate into buying trends -- the survey, simply put, was checking on how well-known certain brands are among this specific demographic. Nevertheless, it's important for Coca-Cola to be known -- that's winning a big part of the battle for future perpetual customer loyalty. Coca-Cola still has a long way to go, in my opinion, in terms of instilling a "cool factor" into its famous trademark sodas. Like I say, it's been my perception that the younger a beverage consumer is, the more likely said beverage consumer is to prefer Pepsi. I don't like that, certainly (I did, however, like this survey!).
Disclosure: I own shares in Coca-Cola; positions can change at any time.
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Reader Comments (Page 1 of 1)
4-10-2008 @ 3:38PM
fffhhh said...
It's a pretty well-established fact that Pepsi is favored by those living North of the Mason-Dixon line, and Coca-cola is favored by those south of it. There is also the whole Miracle Whip versus Hellmans' distinction along pretty much the same line. I'm guessing you live in the north or midwest??
4-10-2008 @ 4:06PM
D said...
Coke is and will always be my #1 favorite soft drink. HOWEVER, now that I am 41, and now on a weight management program, I can no longer enjoy my favorite beverage. I have had to stop drinking Coke cold turkey. In doing so, I managed to loose 17 lbs., partly because of the Coke. I believe it's because of the corn syrup they use.
I would love to see and taste a Coke using organically grown and processed cane sugar. If they can do that I may take up drinking Coke once more. Until then, no Coke for me.
By the way, though Hellman's is not particularly or widely known around here, I cannot give up my favorite "Best Foods" mayonnaise. You will have to pry it from my cold, dead hands before I give it up.
4-10-2008 @ 4:56PM
Sabi said...
Based on studies the best Soft Drink of the Coke flavor is RC. I have seen studies done where Coke vs Pepsi vs RC, and RC wins. Ofcourse RC's marketing campaign blows so no one really buys it.
Anyone remember "New Coke"
hehe.. nasty stuff...
4-10-2008 @ 5:31PM
Keith said...
Coke is actually very unhealthy for you. Also many people are "addicted" to soda and coke and their health is directly linked to those facts. Wake up America - Coke is not IT -
4-10-2008 @ 8:38PM
Charles Boardman said...
As an investment, Pepsi comes out on top with all of its snack items and its recent acquisition of Quaker Oats and its Gator Aid and multiple food items.
4-11-2008 @ 3:02AM
Skorpius said...
I'm 34 and was born and raised in Chicago. My father and I drink Coke, while my mother and sister have always liked Pepsi. We were also a Hellman's Mayonnaise house.
4-11-2008 @ 2:45PM
Andrew Davidson said...
I'm 20, and I can definetely tell you that Coke is only popular in the South or rural MIdwest. Coke is so old and its marketing is actually horrible. Pepsi and its other products liek MD are much more new and actually have some taste. If I had to make a guess, I would say that Pepsi will gain more in the market in thext ten years and it has a diversified number of products.
4-13-2008 @ 4:10AM
Chuck Burkhart said...
Andrew Davidson, I see by your excelent spelling and grammor that your a good spokes person for the Pepsi Generation.
Please, as an employee of Pepsi, I beg of you, stop trying to help us.
When you look at the soft drink side of pepsico, and compare it to Coca-Cola, Coke has almost a 4 to 1 advantage. 200 BILLION Cokes are served each day, this is compared to 50 Billion Pepsi products (yes including Mt Dew)
Interesting Blog though.
4-22-2008 @ 11:04PM
nunya said...
I don't think that's a well-established fact, but my experience definitely is Southerners prefer Coke...not so much Coke products, but Coke is #1 in terms of any "soda." I grew up loving Coke and still love it, and I'm fairly young (in my 20s). Mountain Dew and Sunkist are also two of my favorites, both being Pepsi products. But I will just never drink or prefer Pepsi, and neither MD or Sunkist totally compare to Coke. Still, I just don't see what the big tragedy would be if people aren't into Coke as much anymore.