It's been a while since a Diet Coke campaign provoked much discussion. But latest campaign that broke in early Feb with Olympics telecasts seems to be doing just that, and not just because diet CSD is being positioned toward both male and female millennials almost as an energy drink. Also garnering lotsa buzz, sometimes snarky, is rendering of new tagline in outdoor executions in NY targeting aspiring arts types that some see as carrying the subtext "You're on coke." Meanwhile, SF version was decried this weekend by SF Chronicle as "tone deaf" in its depiction of the techies that are its focus. Still other commenters have noted resemblance of pitch to long-running "Red Bull gives you wings." Tho not all complimentary, that's still a lot of talk about Diet Coke lately!

Most familiar part of broader campaign likely is TV spot that shows people steadying themselves with a Diet Coke before going "on" to make class presentation, wedding speech, etc, with final vignette featuring backstage Taylor Swift getting ready to head out to footlights. But Diet Coke also has been saturating NY in recent weeks with ads from agency Droga5 that peg it as energy provider for ambitious, young, artsy New Yorkers, with pitches such as, "You moved to New York with a portfolio, a pair of skinny jeans and strong opinions on hemlines." Epicenter seems to be ad takeover of subway shuttle between Times Square and Grand Central, but it's also got massive outdoor buy in other areas. Tagline is "You're On." followed by small script "Diet" and larger block-type "Coke," leading quite a few observers to perceive subtext of "You're on coke." "For everyone looking at the printed ad from any distance, the stand-out words are YOU'RE ON COKE," argues Gothamist poster just this week. (Stuart Kronauge, gm for sparkling bevs at Coca-Cola North America, told NY Times blog last month that ads aim to position brand as offering "uplift for those moments when you really need to be on.")

Meanwhile, in Bay Area-oriented execution is playing out another way. "Diet Coke is Targeting San Francisco Techies with Tone Deaf Ads," headlined Chronicle's Web site on Fri, picking up on Business Insider item that referred to ad copy such as: "You moved to San Francisco with a crowd-funded website, a dad-funded hatchback and a no-funded bank account. You're on Diet Coke." Tho ads have been spotted in trendy districts like SoMa and Mission, Diet Coke, or any conventional CSD, may be facing tough challenge there. "It seems that few were interested in the 'elixir' this afternoon at Market and Noe, where Diet Coke reps set up a fairly large giveway table of product," one poster noted yesterday. "During my observation of the encounters with pedestrians and Diet Coke reps, not a single person took them up on their offer for a free cola."  

Until past coupla weeks, Muhtar Kent's stewardship of Coca-Cola had rarely received sustained questioning since his ascension to ceo spot 7 years ago, when he moved assertively to put stamp on drifting co by acquiring Glaceau, forging Vision 2020 strategy and returning focus to strong execution. Since soft Q4 report, tho, skeptical reports continue to come in. Latest came in NY Times "Common Sense" column in biz section on Sat, under headline, "For Coke, Challenge Is Staying Relevant." Writer James B Stewart polled various branding experts about whether famous Coke brand is in trouble, and drew sobering response from brand guru Martin Lindstrom that avg age of Coke drinker is 56, at time "young people themselves are turning to alternatives like energy drinks" and surveys suggest young consumers don't like highly carbonated drinks. (Piece notes that Coke is more highly carbonated than Pepsi and twice as carbonated as energy mainstays Red Bull and Monster.) (That said, Lindstrom also said co needs to develop an incubator model, seemingly unaware of existence over past several years of Venturing & Emerging Brands unit.) Brand Illumination founder Tim Halloran similarly stressed need to diversify. "That will require competing in categories traditionally thought of as niche," not traditionally a strength of Coke's, he warned.  

Living Essentials this spring will tie its 5-Hour Energy shot to military-focused cause marketing via launch of cherry-flavored extension in red, white and blue bottle that supports Special Operations Warrior Foundation. New item, which likely will ship in Apr for Memorial Day-July 4 promo window, represents shift in strategy that is seeing Detroit-area co now focusing on smaller charities where it can have larger impact rather than those, like Susan G Komen Foundation or Wounded Warriors Foundation, where it's more likely to get lost in shuffle among other big brands, said prexy Scott Henderson.

Launch comes as 5-Hour has tilted media campaign this year to ads that try to counteract impression among some consumers that energy shots get you jacked up by positioning line as offering greater focus in day-to-day activities. General spot airing since Jan portrays folks engaged in chess, moto cross or making a presentation with voiceover that touts such benefits of focus as "clarity and alertness," "owning your opponent" and "getting in the zone." It's been joined by humorous execution depicting 5-Hour endorser Clint Bowyer in various poses when he has focus (driving his racecar) or doesn't (lost in parking lot, pouring whole bottle of milk into his breakfast cereal) and will be buttressed by additional spot portraying more youthful consumers. But co has dialed down "amazing people" ad series after portrayals did not prove as engaging to consumers as anticipated.

Erosion of 5-Hour Energy over past year or so seems to have bottomed out, Henderson reported, with brand now generally even in IRI-scanned retailers and in c-stores. It's having mixed performance at Walmart - down in drug sets, but up at front end - and is also down in drug chains. That suggests that female shoppers who frequent those aisles continue to be wary of brand, either for their own consumption or for their spouse's, following widely picked up NY Times report that linked brand to 13 fatalities. Likely for similar reason, cause marketing efforts to raise money for breast cancer, and thereby elevate brand profile among women, haven't fared as well as in prior year and are being rethought. Co has steadfastly pointed out that fatalities reported in Times were not showed to have any causal link to 5-Hour Energy, and it's defended safety of product. Even so, Henderson noted with frustration, those 13 deaths continue to resurface, even in body of news stories reporting on otherwise favorable new developments, such as recent research that suggested that doses of 200 mg of caffeine, the amount in 5-Hour, have beneficial cognitive effects. Still, as Monster Beverage ceo last week told investors, Henderson said he's hoping effect is gradually wearing off.  

Just heard at deadline today: GTG, broker/brand-incubation unit launched by Coca-Cola bottler Abarta, closed its doors late last week, tho principal Jady Conboy, and possibly a key colleague or 2, may segue to another incubator, Brands Within Reach. Pittsburgh-based GTG was best known for its work helping to establish King Juice's Calypso lemonade brand in its Northeast footprint, tho Calypso is believed to have exited a month ago when it moved to building up its own internal sales resources (BBI, Feb 4). Word is that Jady is in discussions with another brand incubator, Brands Within Reach of Mamaroneck, NY, about teaming up and possibly bringing over some of GTG's remaining brands. More word as we hear it.  

Coca-Cola has brought in CSD exec from its Canadian operations, Shane Grant, as svp running Glaceau operation in NY, per memo to troops today from Katie Bayne, prexy of N Amer brands. Grant succeeds Ilan Sobel, who after 3 years running Vitaminwater and Smartwater marketer "has decided to repatriate at the end of his assignment to pursue personal and professional interests outside of the Company," Katie wrote. South African-born Sobel had logged 17 years of service at KO all told, including key assignment in China. Under his watch, Vitaminwater has lost considerable ground, with both the core sku and now Vitaminwater Zero slipping lately, some of damage at hands of Talking Rain's Sparkling Ice. Fruitwater, devised under Sobel as response to Ice, has been criticized for undermining brand's all-natural premise, tho it's likely the best-crafted of various cos' Ice knockoffs, and it doesn't appear to have made much headway. In recent years Glaceau has continued to serve as highly promoted item, even in its core NY market last year, and it has essentially eliminated field marketing force of 100+ that had been essential element of brand's earlier success in city. By contrast, Sobel's stewardship of Smartwater electrolyte-enhanced water appears to have been strong, with brand continuing to grow at premium price and none among array of knockoffs able to snatch much share.

Challenge of reversing trends on Vitaminwater while continuing to build Smartwater falls to Grant, who's worked for Coke since 2000, starting with stints in Australia and New Zealand, most recently serving as vp sparkling beverages, in KO's Canada Business Unit, where he also has overseen noncarbs like Vitaminwater. He'll be relocating to Glaceau's NY offices.  

Longing for a hint of summer in your sub-freezing part of nation? Perhaps Coca-Cola is out to evoke joys of July 4 and Labor Day holiday periods with summery-seeming pricing in Target stores: BBI reader has sent photo showing hot price of five 12-packs of 12-oz cans of Coke CSDs for $10 in chain. At barely 15 cents per can, that seems to echo hottest summer promos of last year, even if weather's not close to being hot yet in 2014 . . . Body Armor SuperDrink has further extended athlete roster by bringing on NBA All Star James Harden as an owner and endorser. Array of activities involve serving as face of national promo launching this weekend, making in-store appearances and participating in text-to-win contest tied to brand's new "Upgrade Your Sports Drink" theme. He's purchased or been given equity - co didn't say which . . . PepsiCo and its key China partner, Tingyi, have signed multi-year deal with Shanghai Disney Resort that makes partners primary bev suppliers to resort, offers integrated brand presence in key locations and calls for 3 cos to undertake co-promos to support both bevs and the park. But wait, there's more. PEP also will develop "innovative beverage equipment" for resort guests, and its Asia R&D Center in Shanghai will develop unique menu items . . . Boutique tea maker Harney & Sons is joining rush into capsules, launching pods to support all Keurig and K-Cup machines with 4 blends from its Classic hot-tea collection and 4 from HT collection. It's employing "Cool, Peel & Recycle" technology so consumers can easily recycle the capsule filters.  

Bev marketers looking to tackle trendy Portland, Ore, area now have a new distribution option. Corwin Beverage, Pepsi bottler operating in southwest part of Wash State for 70+ years, has opted to diversify beyond blue-system items by taking on indie snack and bev brands like Cabana Lemonade, Vittoria Coffee and Deep River Snacks, while also expanding into neighboring Ore territory that includes Portland metro, per report in Vancouver/SW Wash Business Journal. "We were pretty much dependent on Pepsi for our success, and they've done well for us over the years, but looking to the future, we need to be more diversified," said svp/gm Vic Oenning. Bottler hopes to build base in Portland starting with 400 indie c-stores in area, while also trying to crack metro's Plaid Pantry stores. Of course, it doesn't have access to Pepsi portfolio beyond its franchise territory in SW Wash. Oenning told paper further moves are likely in as little as 60 days as co aims to obtain 20% of revenues from new sources.  

Matthew Rothschild has segued from dir of national accts at Zico Coconut Water, which recently was acquired in full by Coca-Cola, to the new post of natl acct exec at Coke's Venturing & Emerging Brands incubation unit, which has had oversight of Zico and other emerging brands, per LinkedIn update. Before arriving at Zico in 09 he'd spent nearly 5 years at Vitaminwater marketer Glaceau . . . Jones Soda founder and former ceo Peter Van Stolk, who's been mainly focused since leaving JSDA on operating online organic grocer called Spud.com, has been elevated to board chmn at charitable org Vitamin Angels, with which he's been affiliated for 6 years, per LinkedIn.  

Chalk it up to combo of marketing smarts and sheer chutzpah: tiny kids-oriented bottled-water brand Wat-aah harvested bumper crop of earned media over past 10 days when cold call asking Kenny Scharf to participate in water-drinking-themed art initiative mushroomed into appearance by First Lady Michelle Obama at New Museum exhibit swarming with NY's elite. Result was bounty of coverage for so-called Taking Back the Streets campaign, with more sure to come as NY-based co takes its art-star-studded project on 12-month road show to DC, Philadelphia, LA and points beyond, adding a few new artists in each city.

Campaign was forged by Wat-aah's ceo, the former ad agency exec Rose Cameron, as part of brand's participation in Partnership for a Healthier America's Drink Up program, which First Lady has supported via her role in Let's Move exercise initiative. As recounted last night by Rose at party at Wallplay gallery on NY's Lower East Side, co approached Scharf about doing poster somehow featuring Drink Up's water drop motif, and when he agreed, dropped his name in calls to other artists, eventually enlisting such stars as Shepard Fairey (who did iconic Obama campaign poster) and Maya Hayuk - 14 artists all told, all with street flair. (Fairey threw himself into project with such vigor that he offered 14 different executions; Wat-aah selected giant seal commanding "Fight obesity" and employing Fairey's Andre the Giant character.) Tho Cameron wouldn't disclose her outlay, she emphasized that no compensation was offered to artists; these were not commissioned artworks. The lure to them, she believes, was their interest in connecting with kids while supporting important cause. The Wat-aah brand's own icon, a cartoon image of a yelling boy with his mouth wide open, held its own appeal as an element of their compositions.

It was Scharf's commitment that drew interest from White House, where First Lady was preparing to celebrate anniversary of Let's Move and getting ready for appearance in NY on Jimmy Fallon show. She could only appear on Feb 18 but invitations had already been sent out for Feb 20 show opening at New Museum, so last-minute switch had to be made, without explanation to invitees for security reasons. That morning, tho, Obama's pr apparatus got word out, and private reception at museum that evening drew estimated crowd of 1,100 would-be visitors, far beyond expected turnout of 400 celebs. It all made for great TV, of course, and coverage in most NY dailies. Show then relocated thru Mar 4 to Wallplay gallery, named for its ambition of breaking down walls between art and commerce, thereby making it ideal host for Taking Back the Streets. (At New Museum, by contrast, Wat-aah branding was far more limited.)

For its own branding, Wat-aah is leveraging campaign in lotsa ways. It's working with agency Berlin Cameron United to spread message during road show. Artists' images harnessed for outsize Wat-aah labels shown in gallery will be repurposed for regular production run closer to back-to-school period. And co will deploy the art in billboard campaign - hopefully gratis in some markets, Cameron said, given broader cause it espouses. The works themselves later will be auctioned, with proceeds going to PHA.  

PepsiCo informed Trian's Nelson Peltz that it rejects his detailed argument released last week in favor of splitting snack and bev units into separate cos. After "closely" evaluating his position, PEP dir Ian Cook wrote Peltz that "the board and management are comfortable and in complete alignment in rejecting your proposal." PEP board "carefully studied management's extensive analysis" and feels it is in best interests of shareholders. "PepsiCo's value is maximized as an integrated food and beverage company," wrote Cook, echoing conclusion PEP announced a week ago following year-long analysis. Cook also questioned some Peltz arguments, noting that both board and mgmt "have concluded that the financial engineering you propose erodes value for shareholders rather than creates value." Despite receiving "Dear Nelson" letter, Peltz told CNBC's Scott Wapner that he plans to continue to take his plan directly to shareholders. He claimed to have spoken with "several" shareholders that gave him a "positive reaction" on split plan. He plans on "relentlessly" taking his plan to PEP shareholders and termed PEP rebuttal is nothing but "rhetoric," reported CNBC.