The Coca-Cola Company (NYSE:KO) has entered into an innovative distribution deal with e-commerce giant Amazon.com Inc (NASDAQ:AMZN). to re–launch its Surge soda, a sparkling beverage which debuted in 1996 and was taken off the market in 2000s.
Surge will be exclusively available through Amazon.com. The re-launch of the old brand is in response to demand from the brand’s fan club of 128,000 Facebook Inc (NASDAQ:FB) members.
Surge has a bold citrus taste and is green in color. The beverage will be available in its original formula in packs of 12 of 16 oz cans, with same old designs. Maintaining the retro look of the brand is a part of the distribution deal with Amazon.
The re-launch of Surge does not use Coca-Cola’s distribution network and depends absolutely on e-commerce. A limited supply of the drink will be available online and will be delivered at the doorstep of customers. The re-launch of Surge is also unique as Coca-Cola will depend on social and digital media only. The brand will not use any of the traditional forms of advertising including T.V.
Headquartered in Atlanta, GA, The Coca-Cola Company is the largest global producer and marketer of beverages. In 2014, the company plans to accelerate growth of sparkling beverages (led by Coca-Cola), expand its still beverage portfolio and increase brand investments by maximizing productivity. It has executed well on these strategic priorities in the first half of 2014. The recent re-launch of Surge is a part of the company’s growth strategy.
The Coca-Cola Company carries a Zacks Rank #3 (Hold).
A better ranked beverage company is Pepsico (NYSE:PEP). carrying a Zacks Rank #2 (Buy).