Can 10 Calorie Soda Compete With Coke & Pepsi?

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A new low-calorie soft drink is about to hit the market courtesy of Dr. Pepper Snapple Group (NYSE: DPS ), called Dr. Pepper Ten . The Plano, Tex.–based company is hoping that the newest version of its flagship soda will help it snare an underserved niche market of men diet soda drinkers. Dr. Pepper Ten, as the name suggests, is a 10-calorie per serving version of the company's flagship soda. It's made with a mix of sugar and no-calorie sweeteners, as are its recently trademarked cousins, Canada Dry Ten, 7UP Ten and A&W Ten. One might question whether another low-calorie soft drink is necessary, or better yet, stands a chance of success in the crowded diet soft drink market dominated by The Coca Cola Company (NYSE: KO ) and PepsiCo (NYSE: PEP ). Early testing suggests that it may, thanks to smart brand positioning. Dr. Pepper Snapple Group is overtly marketing the soft drinks to men who feel more comfortable ordering a low-calorie drink their wives and girlfriends don't sip on or one that their buddies won't rib them about during the game.  Apparently, a man's ego gets just as much of a lift from the suggestion that it is manlier to drink a 10-calorie beverage than a zero-calorie one, as a woman's self-image benefits from eating a 10-calorie snack instead of a 50 calorie treat. But Dr. Pepper's ability to score a hit in the mid-calorie market – particularly with men – still will depend on how good the soft drink tastes. Unlike women who may substitute a poor-tasting treat for their favorite snack if it won't  harm their waistline, men are less likely to give a food or beverage that doesn't capture their taste buds another try.  Coke and Pepsi know this all too well from their failed offerings of Coke C2 and Pepsi Edge, respectively. So far, consumers are responding well to the extra sugar that boosts the sweetness of Dr. Pepper Ten.   If that continues, Dr. Pepper Ten brands may be able to stake a claim in the area of the low-calorie beverage market that Coke and Pepsi have not.  Or, it could just cannibalize the diet soda market, which still would leave Dr. Pepper, which is a distant third in terms of market share behind soft drink beverage king Coke and longtime runner up PepsiCo, with a lot to gain. As of this writing, Cynthia Wilson did not own a position in any of the stocks named here.