Coke Expands Sparkling Water With Smartwater

The carbonated version will debut in select cities with a broader rollout in 2016.

November 20, 2015

ATLANTA – With soda sales still declining, Coca-Cola has launched a new carbonated version of its smartwater brand, the Wall Street Journal reports. The bubbly water will be available in restaurants, stores and hotels in Los Angeles, Miami and New York City this week, with a wider rollout scheduled for 2016. Overall, bottled water sales are poised to outsell soda by 2017.

While Americans have consumed less regular soda and diet soda lately, sales of sparkling bottled water in the United States have jumped 10% to reach $786 million in 2014, according to Euromonitor International. Coke, PepsiCo and Dr Pepper Snapple Group are all branching out with carbonated water brands, but the industry leader remains Nestlé SA with its four of the five U.S. top-selling waters.

Meanwhile, Coke is positioning smartwater as a premium product, complete with actress Jennifer Aniston as its spokeswoman. Coke had tried flavored carbonated water with its Dasani line and still offers plain Seagram’s sparkling water. Coke also will offer a carbonated Minute Maid beverage with 6% juice content in early 2016.

PepsiCo also has plans to sell new sparkling water flavors under Aquafina, although the company ceased sales of Aquafina FlavorSplash recently. Dr Pepper Snapple has reported strong sales of plain Canada Dry and Schweppes carbonated water, and the company will expand U.S. distribution of its Mexican sparking water Penafiel.

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