New campaigns from Coke, Pepsi reignite cola wars

By Martinne Geller

NEW YORK, Jan 21 (Reuters) - Coca-Cola Co (KO.N) and PepsiCo Inc (PEP.N) are reigniting the long-smoldering "cola wars" with new marketing, hoping to stem a 3-year U.S. sales decline of carbonated drinks.

Coke is launching a global marketing campaign this week for its iconic cola brand, weeks after Pepsi introduced new marketing and overhauled the logos of its soft drinks, including its flagship cola.

"I don't think we've seen this kind of head-to-head competition from the cola giants for probably a decade or so," said John Sicher, publisher of industry newsletter Beverage Digest. "In my view, the cola wars are back on in a very intense and dramatic way."

Coke will air new U.S. commercials on Wednesday during "American Idol" on News Corp's (NWSA.O) Fox network. Others will follow in coming weeks, including during broadcasts of the Super Bowl on NBC, owned by General Electric Co (GE.N), and the Academy Awards on ABC, owned by Walt Disney Co (DIS.N).

Coke's campaign introduces the slogan "Open Happiness" and is its biggest marketing move since March 2006, when it launched its "Coke Side of Life" ads. The campaign includes in-store posters, promotions, outdoor and print advertising as well as digital and music components.

The world's biggest soft-drink maker is hoping the new message will appeal to consumers who are financially and emotionally pressured by the recession.

It aims to help consumers "discover life's simple pleasures," said Coke Chief Marketing Officer Joe Tripodi on Wednesday. "Difficult times call for honesty and simplicity."

Rival PepsiCo launched a new U.S. marketing campaign for Pepsi-Cola on New Year's Eve, and began shipping Pepsi-Cola, Mountain Dew and Sierra Mist beverages with updated graphics and logos in December.