Coke injects fizz into Brazil with Guarana launch

Published on .

RIO DE JANEIRO -- Coca-Cola has turned its marketing guns on a new sector of soft drinks that's proving strong in Brazil and is gaining popularity elsewhere. It has launched into Brazil Kuat, a drink made with the Amazonian guarana fruit, said to give energy, backed by a $10 million promotional spend. The company has invested a total of $20 million in developing the brand.

The new drink will be pitched head-to- head with sector leader, Guarana Antarctica, a guarana-based drink produced by Companhia Antarctica Paulista. Coca-Cola has aggressive plans for Kuat to steal a 2.2% share of the soft drinks market and to account for 2.5% of the company's total sales in the country by the end of its first year. By the end of 1998, the product is slated to be available throughout the entire Brazilian territory.

A campaign, which includes point of sale promotions and a 30 second commercial aimed at 20 to 30 year olds, urges "Beba outros ares" - literally "drink other airs" but meaning "try something different." It was created by U.S. agency Goldberg Moser O'Neil, San Francisco, and adapted in Brazil by Duailibi Petit Zaragoza, which handles the Coca-Cola business in the country. The ad will run for four months.

The brand's packaging is in red, green and black, reflecting the red color of the guarana fruit. Kuat means "brother sun" in the local Indian language.

This is not Coca-Cola's first entry into guarana drinks in Brazil. It already has a guarana brand called TAI, but it has always been very weak and, with only 2.9% of the soft drinks category, it now looks threatened with extinction.

Guarana Antarctica leads with 8.1% of the total soft drink market and 26.2% of the guarana segment. Next is Brahma at 18%. Coca-Cola's Tai has just 11%.

Copyright November 1997, Crain Communications Inc.

Most Popular
In this article: