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Reuters reports that a number of beverage companies are investing in flavored waters that they hope will generate new sales.

Coca-Cola’s plans are for lemon and raspberry versions of its Dasani brand, Pepsi is planning to launch a new version of its Aquafina brand called FlavorSplash that will come in raspberry, wild berry and citrus flavors, and Nestle (which makes Perrier and Poland Spring) is planning something called Nestle Pure Life Splash that will come in lemon, orange, strawberry and raspberry.

The US water market generates $11-billion a year, and the flavored segment has seen some strong success stories. Gatorade's Propel Fitness Water, for example, saw sales gains of 48.7 percent in the first nine months of 2004.

Meanwhile, the Wall Street Journal reports that Cadbury Schweppes has found unexpected success with its 7 UP Plus, a pink soda that it describes as a juice, which has calcium, vitamin C, five percent fruit juice and 10 calories per eight-ounce serving, and is sweetened with Splenda sugar substitute – and has a bigger market share than PepsiEdge and about the same share as Coke’s C2.
KC's View:
It was just yesterday that we reported that Coca-Cola has a number of other new product introductions in the pipeline, including Vault, which would compete with Pepsi’s Mountain Dew, and a new diet drink called Coke Zero.

Looks like the old beverage aisles are going to get crowded, and supermarkets’ pockets are going to get heavy as they collect all that promotional money and slotting allowances.