Mott took control of the company and quickly streamlined operations to make the company debt-free within the year. Chemist Rufas Kamm was given the responsibility of coming up with the new flavor, which took six months to perfect. Royal Crown Cola was an instant sensation. Get free quotes from multiple sellers. Have a requirement?
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Get Latest Price Request a quote. Royal Crown president W. As the decade wore on, however, studies made more specific claims. In , the decisive blow against cyclamate came in the form of two studies. One claimed that chicken eggs injected with cyclamate resulted in deformed chicks, while another found that rats given doses of cyclamate showed an increased risk of developing bladder tumors. The diet soda industry went into a tailspin, plummeting from 20 percent of the market to less than 3 percent.
Manufacturers frantically reformulated their drinks and tried to reassure consumers, all to no avail. Overnight, the diet soda craze had come to a standstill. The downturn hit Royal Crown particularly hard.
Diet Rite had been its star performer, the one advantage it had over Coke and Pepsi. After a few weeks, the company re-released Diet Rite, this time sweetened with saccharine. Eventually, Coke and Pepsi re-entered the market with better formulas and marketing, and once again, Royal Crown Cola had merely served as the guinea pig for its competitors.
Today, cyclamate is widely used as a sweetener in countries like Australia, South Africa, and throughout the European Union. Scientists around the world say it's safe for consumption, yet the results of the studies still linger. The United States, Japan, and 45 other countries have upheld their ban on the additive. How could such dubious results be admissible? Donovan pointed to a legal loophole called the Delaney Clause , an amendment to the Food, Drug and Cosmetic Act of established by a senator named James Delaney, who investigated insecticides and carcinogens in the food industry in the late '50s.
No matter if it was a granule or a gallon, if it proved hazardous to human or animal health, the ingredient had to be pulled. Vowing to never again put so many resources behind a single product, the company began to diversify.
It bought two fruit juice manufacturers, Texsun and Adams Packing. Then it took the truly bizarre step of purchasing seven home furnishing companies. The downhill slide accelerated. That acquisition, at least, made some sense, as it would give the company an outlet for its fountain sodas.
But Royal Crown mismanaged the chain, introducing burgers and other conventional fast-food fare to a company that had made its name with roast beef sandwiches. In , the government convicted him on tax evasion charges, and soon after investigated him for insider trading. While Royal Crown was busy cutting costs and making lampshades, Coca-Cola and Pepsi were dumping millions into an unprecedented marketing arms race.
Beginning in the mid-'70s, the two began one-upping each other with taste tests, rewards programs, TV ads, new products, and numerous other promotions.
In , after it found out that Coke was putting a specially engineered Coke can aboard the Challenger space shuttle, Pepsi quickly rigged up its own can and pressured NASA into letting it onboard. Neither can worked the way it was supposed to, and the astronauts complained about the gimmick.
But no matter: The two companies had been to outer space. From the consumer perspective, the cola wars looked to be two giants bent on destroying each other. The reality, though, was that both of them benefited from the exposure. With its limited ad budget, RC came out with some standard-issue TV spots showing people chugging from a bottle before pausing to smile at the camera.
Contagious Take me home. Log in Become a member. However, the power of the creative proved to be a catalyst for organic sharing, with the film being watched 1. They recommend that agencies focus on making the work entertaining: reward the viewer, and they will reward you back with sales Give an overview of the RC Cola brand. Who is the target audience of RC Cola? Were there any cultural insights that helped connect with this Gen Z audience?
The road to reaching the Gen Z demographic is through humour. How did RC Cola land on this bizarre creative execution? Why is humour the best creative territory for reaching a younger audience? Was there a specific catalyst that caused the ad to go viral? I always say that it is more expensive to be safe than it is to be brave.
Because when you play things safe, your ideas are not going to travel as far. How does this campaign fit with the long-term brand building of RC Cola? Like this article? Want more Contagious thinking? Thanks for signing up. There was an error. Please try again.
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