Vanilla Coke from Coca-Cola

Coca-Cola India on Wednesday launched Vanilla Coke in India. The company said that the new drink offers the 'same true taste of Coca-Cola with a hint of vanilla flavour.'

The company, which has invested $100 million in expanding production capacity during the last two years, will launch the vanilla-flavoured Coke only in the metro cities first as it faced production crunch.

The first phase of launch would cover 17 per cent of the  population, Sanjiv Gupta, President, Coca-Cola India, said.

Vanilla Coke will be launched in 500 ml PET bottle first and later either 300 or 200 ml glass bottles, and cans, he said.

Gupta said, "This launch is a continuation of our endeavor to offer new products to our consumers. Our consumers have always enjoyed Coca-Cola and we are confident that now Vanilla Coke will provide a new and enjoyable experience to the consumers. Vanilla Coke has been very successful in the international markets."

The company is targetting the urban youth with the new product. The launch of Vanilla Coke will be supported by an integrated marketing programme that includes a television commercial with the Vanilla Coke ambassador, actor Vivek Oberoi, in Elvis Presley's get-up.

The advertisement has been conceptualised by McCann Erickson creative director Prasoon Joshi and his team and has whacky music by Bappi Lahiri and composition by Vishal-Shekar duo of the Jhankaar Beats fame. It will be launched in mid-April across all major channels.

After recording 20-30 per cent sales rise last year, Coca-Cola India said that it expects to maintain the same level in 2004 even as it faced production constraints with regard to its newly-launched vanilla-flavoured Coke.

"We posted 20-30 per cent sales growth last year. In 2004, we expect sales to be around that level. We will launch the Vanilla Coke in a phased manner because of production constraints," Gupta said.

The company posted 20-30 per cent growth last year despite the controversy over high-level of pesticides in soft drinks as found by the Centre of Science and Environment lab tests.

With the launch of Vanilla Coke, there would be some 'cannibalisation,' he said, adding that "we should see a 20 per cent incremental rise in franchisees."