Glacéau: Marketing Vitaminwater
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Case Details:
Case Code : MKTG166
Case Length : 18 Pages
Period : 2002-07
Pub Date : 2007
Teaching Note :Not Available
Organization : Energy Brands Inc.
Industry : Packaged Water
Countries : US
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"Enhanced waters have the potential to deliver flavor
variety and a number of positive added benefits, including nutrition, rehydration,
energy, etc., thus placing them in the sweet spot of consumer demand. Enhanced
water is catching on among consumers of all ages, genders and income levels."1
- Bill Pecoriello, Analyst, Morgan Stanley2, in 2006.
"Vitaminwater has hit those three prongs (physical,
emotional and spiritual) by balancing the spiritual need of overall health and
wellness with the physical of refreshment and the vitamins that you need, plus
the emotional with the packaging having words on it that are cheeky and fun. I
think it's one of the best new product introductions that I've seen in the last
few years."3
- Heather Dupre, Director Innovation, Kindred Keziah4, in
2005.
Introduction
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In September 2006, PepsiCo Inc. (Pepsi)5 announced that it had agreed to change
the packaging, label, and cap of its SoBe Life Water6, as per the settlement it
had reached with Energy Brands Inc., (Energy Brands), maker of the Glacéau range
of enhanced water products.
In April 2006, Energy Brands Inc. had filed a lawsuit against Pepsi, alleging
that SoBe Life Water's packaging, label, and cap were similar to those of
Glacéau vitaminwater and that Pepsi intended to confuse the consumers with its
new packaging. As per the lawsuit, Pepsi had resorted to trade dress
infringement and dilution and its label and bottle resembled that of
vitaminwater.
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It was also alleged that Pepsi had launched SoBe Life Water after it failed to
acquire Energy Brands in early 2006.
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On reaching the settlement with Pepsi, Founder CEO of
Energy Brands, Darius Bikoff (Bikoff), said, "We were pleased with the
overall settlement. There has been a history of attempts to ride the
success of vitaminwater's coat tails. And it is kind of a shame because
I think our competitors are better served trying to come up with their
own innovation..."7
Analysts opined that the lawsuit and its subsequent settlement indicated
the growing insecurity of the soft drink majors, which were facing a
threat from companies promoting healthy alternatives to soft drinks. |
Glacéau: Marketing Vitaminwater
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