TORONTO -- It's a small deal that could pack a big pop, or just a little fizz. Coca-Cola has quietly leased a 4,000-square-foot retail space in Toronto, according to a report in Forbes. While it's just a storefront, it foreshadows what insiders say is the Atlanta-based beverage giant's dreams of dunking Starbucks in its own brew.
The lease, for a space that is much larger than the average Starbucks space, went into effect April 1, the same day Coca-Cola drench the world in Coca-Cola Blak, which a spokesman describes as a carbonated "Coca-Cola Classic-based [image-nocss] beverage that finishes with a rich essence of coffee."
But the spokesman declined to discuss or even confirm the Toronto lease, which was confirmed by real estate and design industry sources in Manhattan and Toronto. Coke was represented in the deal by CB Richard Ellis, which also refused to discuss the transaction, according to the report.
Coke's spokesman did confirm that the Atlanta company has trademarked a hot-beverage brand name, FarCoast, although he would not elaborate further. "Far Coast is a brand that we'll be launching in the future. It's a hot brewed product," said the spokesman. "We don't comment on any future activities."
Sources familiar with Coke's plans say that, after years of internal development, the company last year hired Philadelphia design firm Otto Design Group and a Manhattan advertising agency to explore a look for the brand and the retail rollout.
For its first store, Coke is not going for just your basic storefront. The Toronto store is located in the Tony Yorkville district. "If you have a purse to sell for $8,000, that's where you'd sell it," quipped a local real estate observer.
With plans for the store still cloudy, it's worth pointing out that the company's previous high-profile foray into retail, a store on Fifth Avenue and 54th Street in Manhattan that sold a wide range of Coke-branded products, did not fare well. And on the product side, Coke had one of the biggest marketing flops in business history when it was forced to withdraw its hyped New Coke. But this time, with a product to focus on in a market that, with the expansive success of Starbucks, has proved far deeper and broader than many experts had predicted, Coke clearly hopes to not only score a product hit but also build in a retail presence.
In other Coca-Cola news, the company launches a new marketing strategy dubbed The Coke Side of Life. It's a simple idea, really. Drinking a Coke makes people happy. It tastes good. And it's an invitation to live on the positive side of life.
The first round of television spots in what will be a fully integrated, global campaign including digital components, promotions, properties and new graphic treatments began airing in the Unites States this weekend during broadcasts of the NCAA Final Four on CBS and American Idol on Fox. Simultaneously, outdoor and print executions are appearing across the country, and an extensive online campaign that features exclusive viral videos and other unique content will help dimensionalize The Coke Side of Life in the digital world.
"We live in a world where we make choices every day, and The Coke Side of Life encourages people to make those choices positive ones," said Marc Mathieu, senior vice president for carbonated soft drink core brands, marketing, strategy and innovation. "This new campaign invites people to create their own positive reality, to be spontaneous, listen to their hearts and live in full color."
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