Friday, August 12, 2016

Ch. 11 - Developing and Managing Products

 
Cocaine Cola anyone? In 2008 Red Bull developed a new, non-energy drink product, called Simply Cola, which was released in 23 test markets (countries). The plan was to introduce a “natural” cola without the added phosphoric acid and high fructose corn syrup ingredients typically found in products like Coke and Pepsi. What they ended up with, however, was a headache after German food regulators found trace amounts of cocaine in the beverage in 2009.
 
Despite only trace amounts being found, the negative press resulted in the drink disappearing from shelves in Germany. This German ban then prompted Taiwan to mistakenly confiscate 18,000 cans of the original Red Bull Energy Drink.
 
The German Institute for Risk Assessment did declare the product safe shortly after the fiasco and Simply Cola was placed back on shelves in August of 2009. Great news for Red Bull right? But no – the combination of negative press and an already saturated cola market proved to be too much of an uphill battle for Simply Cola to withstand. Largely considered a failure, In 2011, Red Bull Simply Cola was forced to retreat back to it’s core markets in Germany and Austria where it is now distributed exclusively.

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