Cape Town - Coca-Cola Southern and East Africa began introducing Dr Pepper, a US competitor in the carbonated soft drink industry, to the South African market this month.
Coca-Cola acquired the rights to bottle this brand in 1999 when it purchased Cadbury-Schweppes' soft drinks division. In the US it is favoured by Texans and was immortalised in the outlaw film Bonnie and Clyde, starring Faye Dunaway and Warren Beatty.
The 100-year-old brand from Texas, which commands 8 percent of the $30 billion a year US carbonated soft drink market, will be gradually rolled out in South Africa. Dr Pepper is the third most popular carbonated soft drink in the US and an arch rival of the Atlanta-based bottler.
In the run-up to the summer sea-son, Coca-Cola would begin by distributing the drink in 340ml cans and convenience six packs, said Rute Moyo, the director of business strategy of Coca-Cola Southern and East Africa.
Eventually the drink, which is reported to be flavoured with a cocktail of beetroot, plums and prunes, will be bottled in three major regions of the country. While the ingredients and exact blend remain the subject of speculation, Moyo said the essence would be made from a combination of local and imported ingredients.
Moyo said the aim of Coca-Cola was to garner 1 percent of the soft drinks market in the first year and we hope eventually this will rise to 3 to 5 percent.
This is in a market that has been eroded by own brands, sports and health drinks, Namibian-bottled Pepsi, which accounts for less than 1 percent of the market, and a revival of mineral water and fruit juices.
Coca-Cola's strategy hinges on supplying convenience stores and ensuring availability in all outlets including supermarkets, food markets and petrol stations. Pick 'n Pay already stocks the drink and we are in discussions with most other outlets. The marketing strategy would revolve around a lot of in-store sampling.
Beginning during the peak thirst summer season next year, Moyo expected there would be a radio and television advertising campaign once there is full market penetration, that will target the top end of the youth and up and coming affluent market.
Moyo did not expect the canning of Dr Pepper to result in job creation.
While Coca-Cola is the pre-eminent soft drink, its market share is gradually being eroded as choice and tastes become more diverse.
From Coca-Cola's point of view the introduction of Dr Pepper is a way of retaining consumers within its portfolio of soft drinks.
It still dominates with more than 50 percent of soft drink sales and the Schweppes stable contributes less than 15 percent.