Coke referred to FTC Over Alleged Misleading Powerade Claims
Coca-Cola has been referred to the FTC for alleged misleading advertising for Powerade Zero. Following a complaint by Pepsi (marketer of rival Gatorade), Coke refused to follow a recommendation of the National Advertising Division that its ads for Powerade Zero be changed to make it clear that having fewer calories actually provides less energy, not more, for users of sports drinks.
The referral comes after Pepsi sued Coke over whether Pepsi’s Gatorade was as “complete” as Coke’s Powerade.
(Note to readers: If you’re finding this complicated and pointless, you’re correct! It is! But these companies really, really care about this stuff.)
The interesting thing about Coke’s Powerade Zero is that it traps Coke in a bind: On the one hand, having zero calories is good for drinkers who don’t want to put on weight. On the other, Coke cannot claim it is an “energy” drink if it has no calories. (Calories provide energy, for those of you who flunked high school biology.)
Coke previously lost a round in this war, after the NAD asked it to pull a TV commercial featuring an Amish wagon race. In the race, the wagon labelled “10″ (as in calories for Powerade Option) beat a wagon labelled “50″ (for Gatorade). NAD ruled that the spot was misleading because you’d need more calories, not fewer, to win a wagon race.
Coke yanked the wagon race commercial and replaced its Powerade Option product with Powerade Zero in late 2008. That ad featured two climbers on ropes. The Gatorade climber is labelled “50″ and the Powerade climber “10.” The Gatorade climber’s rope then snaps, sending the climber plummeting to the ground. NAD says:
… much like the Amish commercial that was the subject of the first compliance proceeding, new print and broadcast advertising communicates the message that Powerade Zero is a better choice, and will actually enhance performance, for consumers engaging in vigorous activity, since the calories in Gatorade will only weigh them down.
Thus, it’s full of alleged lies.
Jim Edwards, a former managing editor of Adweek, has covered drug marketing at Brandweek for four years, and is a former Knight-Bagehot fellow at Columbia University's business and journalism schools. Follow him on Twitter or send him an email.
BNET User Analysis