The launches come as carbonated beverages continue to lose their 'share of throat' in Thailand, and as non-CSD drinks outstrip the category's single-digit growth several times over. According to beverage industry consultancy Canadean, the CSD share declined to 25 per cent last year from 27 per cent in 2001.
The non-CSD category, meanwhile, has experienced robust growth, with the 5.2 billion baht (US$126 million) RTD coffee sector increasing alongside almost 30 per cent annual growth in consumption.
Zu - a made-for-Thailand product - joins Namthip water, Qoo fruit juice and two Nestea flavours in Coca-Cola's non-CSD stable. But this is just the tip of the iceberg as the cola giant strives to "selectively widen (its) family of beverages". Industry sources expect an energy drink to be next on the list.
Coca-Cola is branding the ginseng-flavoured coffee as a drink for "hard working males", targeting truck drivers, labourers and outdoor workers between 25 and 35 years. Zu launched in the northeastern province of Nakorn Ratchasima, a traditionally big market for coffee, and more recently RTD coffee products.
Marketing - featuring Thai action hero Tok Supakorn - will also initially focus in the northeast, before expanding to the rest of the country, marketing manager Chuenhathai Vuntanadit said.
She typically declined to reveal the launch budget, but said that Zu would be supported by a fully intergrated push designed to reach "over 90 per cent of consumers nationwide in six-weeks".
Spearheaded by a 30-second humorous TVC entitled 'Dancing', the campaign will also include "mobile sampling teams travelling throughout the northeast, print and radio advertising in local media, outdoor advertising in high visibility areas, PR activities, cool posters and point-of-sale displays," Chuenhathai said. Coca-cola followed up the TV spot with its 'Hunt for the Zu Man' contest.
Advertising for Zu was created by Lowe Worldwide, and PR is being handled by local outfit Goodmorning Monday.
Distribution will take place in phases. "During the first phase of the campaign, Zu will be available through traditional trade and convenience store channels; in following phases, the product will be available through modern trade channels as well," Chuenhathai said.
Initial internal research on the product has been positive with "almost 80 per cent of our target consumers indicating that they would seek out and purchase Zu rather than other brands currently on sale", she said.
The 12 baht price for 180ml cans - equivalent to an average cup of hot coffee in Thailand - puts Zu in competition with established brands Nescafe and Birdy, and a number of smaller players in the fragmented sector.