The Other Guy Blinked, Part IIA

It is just a matter of time before the Rice Riots affecting developing markets turn into the Water Riots. Though I expect that that was something Noah already knew.

Those “bad” guys keep banging on the doors of the ark, seeking imitative ways to profitable salvation.

Last week, PepsiCo acquired Britain's V water to protect its European flank from Coke.

V water states that it is made from spring water, comes in different flavors and includes additives like vitamin C, zinc and ginseng.

Can anybody spell vitaminwater? The same US brand that Coca-Cola paid $4 billion to Glaceau for last year and is planning to launch overseas in such countries as, surprise, surprise, the UK.

After all, when you buy a regional brand, the easiest way to make money on your shiny new brand asset is to launch it in new geographies. The launch pipelines are pure incremental money and whatever sales you get are gravy against that expensive roast beef you purchased.

How rare is success? Actually quite frequent as long as you get the local temperature right.

The main challenge? Of yeah, when the competition is there ahead of you. Like what Pepsi just did to Coke. Nothing like landing on a foreign shore and seeing that someone was there before, like the Vikings welcoming Christopher Columbus to the new world.

This kind of strategy/counter-strategy cuts across consumer categories. Reckitt-Benckiser buys Mucinex in the US and is “banking” on rolling it out globally. What they really bought was not a unique decongestant (as guaifenesin is as old as the hills) but an advertising property called Mr. Mucinex that they better hope will play as well in Sao Paulo as it does in San Diego.

In the mean time both Coca-Cola and Pepsico are trying to defend their “water substitutes” against contamination and resource defoliation in India, as Nestle tries to gain control of new water access points in the US Pacific Northwest.

Pepsi, already owns SoBe Life Water, Gatorade sports drink and Aquafina bottled water.

The question will be do they truly believe that they can grow V water or are they just trying to pick Coke’s pocket, leaving the company with less money to invest.

Water polo anyone?