Coke gets sole bottled water rights at Disney parks
By Paul Simao
09/23/02 11:23 ET
ATLANTA, Sept 23 (Reuters) - Coca-Cola Co. on Monday said its Dasani brand would become the exclusive bottled water sold at Walt Disney Co.'s U.S. parks and resorts, expanding a multiyear marketing partnership.
The world's No. 1 soft drink company, which is under pressure to boost beverage sales in the all-important North American market, noted that Dasani also would be served on the Disney Cruise Line.
Under the terms of the agreement, Atlanta-based Coca-Cola will expand Dasani advertising on ABC-TV, ESPN, Lifetime and other Disney media properties. The brand also will become an associate sponsor of the Walt Disney World Marathon.
"The Coke-Disney relationship is a strong tool for both companies and this is yet another step of building Dasani into one of Coke's major brands," said John Sicher, editor of Beverage Digest, a leading industry newsletter.
Shares of Coca-Cola and Disney both fell 1.6 percent in mid-morning trade on the New York Stock Exchange, on a day the Dow Jones industrial average fell 2.1 percent. Both shares are components of the Dow.
Sicher noted that Dasani had been gaining traction in the competitive bottled water market since it was launched in 1999. It is the No. 2 bottled water sold in the United States after Aquafina, which is marketed by archrival PepsiCo Inc.
The expanded agreement with Disney comes about 18 months after Coca-Cola entered into a global alliance with the entertainment giant to market a new line of non-carbonated children's juices, juice drinks and other beverages.
The drinks are packaged in colorful containers featuring Disney cartoon characters such as Mickey Mouse and Winnie the Pooh.
Although the deal with Disney is unlikely to translate into large volume gains, it signals Coke's determination to protect its turf and battle Purchase, New York-based PepsiCo in the United States, the largest market for both soft drink makers.
"The Coca-Cola Co. has enjoyed a 47-year relationship with the Walt Disney Co. and we are pleased to now extend our relationship to include Dasani bottled water," said Melody Justice, senior vice president for media and marketing alliances at Coca-Cola North America.
Coca-Cola and PepsiCo have fought fiercely for the rights to sell soda-fountain drinks and other products at venues like restaurants, sports stadiums and movie theaters since the late 1990s when PepsiCo spun off its restaurant business.
PepsiCo has won some high-profile contracts, including deals to be the official soft drink sponsor of the National Football League and to supply UAL Corp.'s United Airlines, but analysts say Coca-Cola still has a commanding lead over its rival in the overall soda-fountain business.
Shares of Coca-Cola fell 74 cents to $46.78, Disney's stock dropped 24 cents to $15 and PepsiCo lost 28 cents, or 0.8 percent, to $37.22 on the NYSE.
By Paul Simao
09/23/02 11:23 ET
ATLANTA, Sept 23 (Reuters) - Coca-Cola Co. on Monday said its Dasani brand would become the exclusive bottled water sold at Walt Disney Co.'s U.S. parks and resorts, expanding a multiyear marketing partnership.
The world's No. 1 soft drink company, which is under pressure to boost beverage sales in the all-important North American market, noted that Dasani also would be served on the Disney Cruise Line.
Under the terms of the agreement, Atlanta-based Coca-Cola will expand Dasani advertising on ABC-TV, ESPN, Lifetime and other Disney media properties. The brand also will become an associate sponsor of the Walt Disney World Marathon.
"The Coke-Disney relationship is a strong tool for both companies and this is yet another step of building Dasani into one of Coke's major brands," said John Sicher, editor of Beverage Digest, a leading industry newsletter.
Shares of Coca-Cola and Disney both fell 1.6 percent in mid-morning trade on the New York Stock Exchange, on a day the Dow Jones industrial average fell 2.1 percent. Both shares are components of the Dow.
Sicher noted that Dasani had been gaining traction in the competitive bottled water market since it was launched in 1999. It is the No. 2 bottled water sold in the United States after Aquafina, which is marketed by archrival PepsiCo Inc.
The expanded agreement with Disney comes about 18 months after Coca-Cola entered into a global alliance with the entertainment giant to market a new line of non-carbonated children's juices, juice drinks and other beverages.
The drinks are packaged in colorful containers featuring Disney cartoon characters such as Mickey Mouse and Winnie the Pooh.
Although the deal with Disney is unlikely to translate into large volume gains, it signals Coke's determination to protect its turf and battle Purchase, New York-based PepsiCo in the United States, the largest market for both soft drink makers.
"The Coca-Cola Co. has enjoyed a 47-year relationship with the Walt Disney Co. and we are pleased to now extend our relationship to include Dasani bottled water," said Melody Justice, senior vice president for media and marketing alliances at Coca-Cola North America.
Coca-Cola and PepsiCo have fought fiercely for the rights to sell soda-fountain drinks and other products at venues like restaurants, sports stadiums and movie theaters since the late 1990s when PepsiCo spun off its restaurant business.
PepsiCo has won some high-profile contracts, including deals to be the official soft drink sponsor of the National Football League and to supply UAL Corp.'s United Airlines, but analysts say Coca-Cola still has a commanding lead over its rival in the overall soda-fountain business.
Shares of Coca-Cola fell 74 cents to $46.78, Disney's stock dropped 24 cents to $15 and PepsiCo lost 28 cents, or 0.8 percent, to $37.22 on the NYSE.
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I'm sorry but to me, water is water. Some may add stuff to it but pure water is the same regardless of where it came from.