Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

PepsiCo, Inc. (PEP): The Coca-Cola Company (KO) Wants to Start a Hot New Trend

I’ve always thought The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP) were missing out on a chance to capture a niche opportunity by not marketing their beverages as a breakfast drink. Sure, drinking soda in the morning goes against everything your mother ever told you about diet and nutrition, but the fact is, there are quite a few people who like the crisp, cold taste of a sparkling beverage instead of hot coffee to wash down their breakfast.

The Coca-Cola Company (NYSE:KO)Ignoring my free advice, however, The Coca-Cola Company (NYSE:KO)’s decided to go in a completely different direction, launching a hot soda instead. Now, Europeans may like their beer warm and the Spanish their gazpacho cold, but does anyone really like their soda warm?

Source: Coca-Cola Japan.

The Coca-Cola Company (NYSE:KO) is deploying this beverage only in Japan at the moment, using technology for a self-heating can that incorporates a double-walled canister that combines the beverage in one layer and a water and calcium oxide mix in the other. According to, when the can is activated, the contents go from a tepid room temperature of 68 degrees to a steaming 158 degrees in about three minutes. With an outer polypropylene sheathing, the can stays warm for around 45 minutes while preventing the contents from burning your hands.

The self-heating can follows on the development of the self-chilling can launched earlier this year. Gizmag says the auto-cooling can has been in development for nearly two decades with both PepsiCo, Inc. (NYSE:PEP) and SABMiller having had plans to use the technology, though never following through (PepsiCo, Inc. (NYSE:PEP) abandoned the concept because the refrigerant used at the time supposedly contributed to greenhouse gases).

Both technologies certainly have their uses. Soda and beer drinkers would appreciate not having to chill their beverages before tailgating, while the self-warming containers would be an obvious evolution for individual coffee and soup servings. Indeed, Malaysia’s Hot Can manufacturer already markets those exact products.

As for The Coca-Cola Company (NYSE:KO)’s innovation, there’s is an argument to be made that combining ginger and spices makes a delicious hot tea, so its Canada Dry brand of hot ginger ale could be seen as an alternative to that drink, but I’m left wondering who’s been clamoring for this substitute for the real thing.

Apparently quite a few people, as Japan’s Kirin Beverage is planning to launch its own warm soda called “Kirin No Awa: Hot Hojun Apple & Hop.”

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.