![]() Mello Yello was first produced in 1979 to compete with Pepsi’s Mountain Dew and Schweppes’ Solo but disappeared when energy drinks such as Red Bull came on the market. ![]() “You get a short-term boost from consumers who have seen it before and a short-term boost from consumers who haven’t." “The original clients for the brand are engulfed by a sense of nostalgia when they’re confronted with their old friends from a previous generation . . . and the younger segment is intrigued by what appears to be a new and exciting product which has heritage connections," Mr Ritson said. Retro promotions have been used recently to promote goods ranging from ice cream, confectionery, beer, cars and salad dressing. ![]() “What you see with these retro special editions is a chance to actually build brand equity while at the same time driving volumes and that’s a pretty magical combination." “It’s a packaging refresh but doesn’t involve any major above the line investment," said Mr Ritson. ![]() Mark Ritson, associate professor of marketing at Melbourne Business School, said retro promotions were inexpensive and delivered a short-term volume boost without damaging brand equity and margins. “You have this new generation of creative people, 25-year-olds who look at stuff we would cringe at and say ‘hey, that’s pretty funky’," Mr Dery said. “Retro is pretty fashionable these days – what goes around comes around," said M&C Saatchi chairman Tom Dery. Relaunching “retro" brands such as Mello Yello, Fanta and Lift in their original 1970s, ’80s and ’90s packaging is much cheaper than launching new brands and reflects the growing popularity of products with a nostalgic twist and so-called “flashback" marketing campaigns. If demand for premium brands such as Coca-Cola and Sprite stays subdued, CCA may struggle to make the annual price increases it relies on to cover rising input costs, analysts said. “To invest over $1 billion in the past three years and to only deliver increased net profit of around $25 million is not good enough."Ĭommonwealth Bank analyst Andrew McClennan said traditional brands were losing ground to energy drinks, while Credit Suisse said frugal consumers were favouring cheap private-label water and soft drinks over more expensive brands. “Coke had invested over the past two to three years significant levels of capital in growth initiatives (particularly in the route trade via new fridges, distribution systems, new products and manufacturing)," Mr Errington said. “What disappointed us is that Coke was tracking some very weak in the past two second halves due to poor weather," said Merrill Lynch analyst David Errington in a research note. On Wednesday, CCA issued profit growth forecasts for 2012 that fell short of market expectations, reflecting weaker than expected volume and pricing growth in its largest markets, Australia and New Zealand.Īnalysts have cut profit forecasts for the second half of calendar 2012 by about 5 per cent and are now forecasting 4.2 per cent net profit growth for the calendar year, in line with CCA’s 4 to 5 per cent guidance.ĬCA shares have fallen 60¢ or 4 per cent, reflecting disappointment in volume growth, which was expected to rebound in the December half after falling almost 6 per cent in the past two years. “It doesn’t cost anything to launch an old brand and you might be able to get some growth, so why spend the Taj Mahal on new products," one analyst said. The world’s largest non-alcoholic beverage company is reviving the Mello Yello brand – once known for its catchy jingle and high caffeine levels – to stimulate sales of soft drinks in Australia this summer.Ĭoke’s local marketing arm, Coca-Cola South Pacific, and local bottler Coca-Cola Amatil, are looking for low-cost ways to boost sales as a combination of subdued consumer demand, aggressive discounting and volatile weather cruel hopes for a rebound in volumes. The Coca-Cola Co’s target customer – men aged 15 to 35 – would possibly be too young to remember Mello Yello, the citrus-flavoured fizzy drink popular in the 1980s.
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