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There were numerous published reports over the weekend about the testing of mid-calorie colas _more than zero-calorie diet sodas, but less that regular sodas) from both Coca-Cola and PepsiCo, companies that are looking at this new category as a potential source of fresh sales growth.

Coke, for example, reportedly has been testing a "Coca-Cola Ultra." Pepsi has trademarked the name "Pepsi LS" (for "low sugar"). Reports are that it could be months before any rollout plans become known.

Cadbury Schweppes also reportedly is considering the development of a mid-calorie soft drink.
KC's View:
We generally try to avoid making prognostications on products like these. After all, when we were working for our college newspaper as a movie reviewer back in the mid-seventies, we saw some press materials for what appeared to be a cheesy science fiction flick and openly opined that Alec Guinness's career clearly had gone downhill for him to be appeared in such stuff. The movie, of course, was "Star Wars." So, we're aware of our fallibility in such matters.

That said, it seems to us that the risk in this category is being seen as neither fish nor fowl. The challenge for the companies investing in mid-calorie drinks is to identify the benefits for the consumer without somehow diminishing the values that are associated with either the full-calorie or no-calorie segments.