Coca-Cola's Big Fizzle

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Those troubles notwithstanding, some experts say that Coke could manage to keep both colas alive, despite the bleak verdict of historic precedent. But, observes Farquhar, "in general, when we have two very similar products produced by the same firm, one is likely to be withdrawn after a period of time."

Coke may emerge stronger than ever from this adventure. It now flanks Pepsi on two sides, much as a military force might surround an enemy. Says Alexander Kroll, president of the Young & Rubicam advertising agency: "It's the most unusual strategy for launching a flanker brand in history, and it may work." Some are sure it will. "They've backed into one of the most powerful strategic positions in the consumer marketplace," says Emanuel Goldman of Montgomery Securities in San Francisco. "After all, they can satisfy the die-hard Coke customers and the consumers who like the sweeter taste."

That may be true even though Coke could conceivably surrender first place to Pepsi in the cola wars. With two Cokes on the shelf, the supermarket purchase share of each might be lower than what Pepsi can muster. Coke is unlikely to worry though, since the combined might of its dual entries will still be greater than Pepsi's. In this case, notes Jesse Meyers, publisher of Beverage Digest, "the sum of the parts is greater than the whole."

At the end of a battle well fought, Coke President Keough last week paid tribute to a former adversary. Said he: "There is one consumer we would like to single out, Mr. Gay Mullins of Seattle, Washington, the founder of Old Cola Drinkers of America. We want to say thank you for your efforts, efforts that symbolize the love our consumers have for Coca-Cola." And Mullins' reward? What else? For being the new Coke's most persistent and outspoken critic, the company is giving him the first case of Coca-Cola Classic that comes off the bottling line nearest his residence. The Real Thing, again. --By John Greenwald. Reported by Joseph N. Boyce/New York, Joseph J. Kane and B. Russell Leavitt/Atlanta, with other bureaus