I remember back in junior high school when the rumors circulated that Coca-Cola was actually laced with cocaine. Any one else remember that one? Well, those rumors are back, but they involve Red Bull Cola this time.

Red Bull Cola is roughly a year old and is supposed to supply the same "kick" that Red Bull gives -- but officials in Germany believe the kick comes from cocaine.

Here's the problem: the Austrian-based company, Red Bull GmbH, boasts that its cola is 100% natural and it uses the coca leaf. The use of the coca-leaf extract led to positive tests for cocaine when German officials scrutinized Red Bull Cola.

Actually, the head of the food safety department in Germany's federal ministry for consumer protection stated that it "examined Red Bull Cola in an elaborate chemical process and found traces of cocaine."

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.

Back in August, I wrote about the 23 state attorneys general that were taking a look at alcoholic energy drinks, concerned that consumers weren't being warned about the dangers of mixing caffeine with beer. Studies have shown that caffeine can lead intoxicated individuals to believe that they are well enough to drive, and can also mask some of the symptoms, fooling those around them as well.

Now Anheuser-Busch (NYSE: BUD) has received subpoenas from New York, Maine, Maryland, Arizona, and Iowa while SABMiller Plc. has received subpoenas for documents from Illinois, New York, Iowa, Maine, and Maryland.

In one of the more idiotic defenses I've seen in awhile, Anheuser-Busch released a statement saying that "If the Attorneys General truly believe that, despite the state and federal regulatory approvals, alcohol and caffeine should not be mixed, then they should use their powers to persuade these authorities to regulate or ban all such beverages, not just the lower-alcohol, prepackaged ones,"

What? Isn't that kind of like saying that the police shouldn't crack down on people selling crystal meth because you can buy all the products you need at the grocery store? Not that I would know ... but if Anheuser-Busch is marketing a product that contains a chemical combination that is more dangerous than the sum of the parts and consumers aren't aware of that, it's worth investigating.

A study in the September Consumer Reports (subscription required) shows that the amount of caffeine found in eight ounces of 12 popular energy drinks ranged from 50 to135mg, with most in the 75 to 80mg range, reports Reuters. That compares to the amount of caffeine in an eight ounce cup of coffee, which ranged from 65 to 120mg, with an average of 85mg, says the National Coffee Association.

The study attempts to surprise consumers by proving that many energy drinks have the same caffeine as a similar cup of coffee. What the study didn't highlight, according to Reuters, was exactly how many energy drinks and coffee people consume during a typical day. The likelihood of people drinking only eight ounces of an energy drink, or coffee, is absurdly low.

Visit any Starbucks (NASDAQ: SBUX) or 7-11 store, and consumers will notice that the smallest size cup in most franchises is 12 ounces, and the largest, 24 ounces. Only Dunkin Donuts provides coffee-drinkers with a smaller version.

If mere athletic talent sold product, kids would be lining up for Tim Duncan's shoes, since he is the best player in the NBA. But it doesn't. It takes a combination of extraordinary athletic accomplishment and charisma to push a brand over the top. Three such athletes, Amanda Beard, LeBron James and Tiger Woods, are front and center in this week's news.

Two are at the peak of their pulling power. LeBron James (Nike, NYSE: NKE, Coca-Cola's (NYSE: KO) Powerade) fresh from an astonishing game five of the NBA Eastern conference playoffs, is dominating the sports page, if not the San Antonio Spurs. The Cleveland franchise has gained $185 million in value since his signing, and the $90 million he received from Nike seems like a bargain now. When his contract expires in 2008, he could demand -- $250 million? $500 million? It is possible, by the end of the career, he could be the first $1 billion athlete?

If Tiger doesn't beat him to it. Beginning tomorrow, Tiger Woods (Nike, Buick, General Motors, NYSE:GM) starts his pursuit of the 2007 U.S. Open. He's inked a 5-year, $40 million deal with Nike, and $25 million from Buick. Unlike LeBron, Tiger can look forward to another 30 years of playing, with lots of green jackets and green cash to come.

New York's Major League Soccer team is owned – and named after - Red Bull. Xyience is the drink of choice at the UFC. Gatorade, a unit of PepsiCo (NYSE: PEP) is an official sponsor of the NFL.

Earlier today, Jones Soda Co (NASDAQ: JSDA) said it would be a sponsor of the NFL's Seattle Seahawks on CNBC. The Seahawk organization granted Jones the exclusive soft-drink and certain non-alcoholic beverage availability rights at Qwest and Events Center as well as other sponsorship and trademark rights regarding the use of the Seahawks trademarks through 2012.

The world of alternative beverages continues to gain notoriety and Jones' deal with the Seattle Seahawks is a big step not only for the company but for the sector. Shares of Jones Soda closed up 8.25%, to $21.64 today.

I wonder if Jones would make an exclusive drink to promote the deal. They could call it Seattle Sludge, perhaps? How about Football Fudge?

Amanda Beard is the complete package: beauty, composure, great public image, and athletic prowess. A three-time American Olympian with many swimming medals to her credit, she has parlayed her accomplishments into a career as a model (Sports Illustrated Swimsuit edition and others) and spokesperson (Red Bull). Now, she has agreed to give America a peak beneath the red, white and blue in a photo spread for Playboy (NYSE: PLA).

Her appearance is another coup for a company that has made great strides in airbrushing the worry lines from a once-tired brand. At one time, the flesh magazine trade could find success offering nubile and attractive but anonymous females. The market, however, has been changed forever by the Internet, and for magazines such as Hef's to succeed, they need exclusive content.

The money shots are those of women who have built their own fame beforehand, and contribute their credibility to the magazine's. (Are you listening, Condoleezza Rice?) Look at the list of those who have appeared over the past few years: Drew Barrymore, Katarina Witt, Mariah Carey, Jessica Alba, Lisa Guerrero.

If ever there was a company whose success depends on its brand, Playboy is that company. Playboy's brand, at its best, represents the playful side of sex, clearly differentiated from the tsunami of misogynist porn swamping the Internet. Featuring models with positive public images isn't just good business for Playboy, it's essential.



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