How To Screw Your Rival – When Coke Failed On Purpose

Who doesn’t love a little mudslinging between rivals? When businesses outdo and undercut one another in ways we haven’t seen since Game of Thrones, all we can do is sit back and enjoy. One such story that stands out is when Coke failed on purpose in its pursuit to screw Pepsi.

As any American is well aware, the rivalry between Coca-Cola and Pepsi is legendary. Going back to “The Pepsi Challenge” of 1975, the two soft drink companies have been sniping and swiping at one another in the pursuit of winning. 

There is one behind-the-scenes story that took the cola wars to a diabolical level. That was when Coke failed on purpose only to bring Pepsi down. 

Sit down, folks. This one’s a doozy. 

The Clear Craze 

Our story of cutthroat corporate screwdom begins in the late 80’s with the resurgence of the “clear craze.” This marketing fad has its roots in the 1939 New York World’s Fair with the 193 Pontiac Deluxe Six. 

I mean, just look at this ghostly puppy:

Who doesn’t wanna make that kitty purr? 

The transparent product trend peaked in the early 1970s before falling out of popularity only to pick up steam again in the 1980s. It wasn’t until Ivory’s “99 and 44/100% Pure” campaign for bath soap that marketers began to latch onto the concept of clear products once again. 

The idea is that transparency inspires faith and trust in the produce. “See? We have nothing to hide,” is the sentiment you feel when you can see the innerworkings of a product. Or so goes the theory. 

This trend bled into the beverage industry with products like light beer and Zima. Naturally, Pepsi Co. wanted a piece of the action. And so they introduced Crystal Pepsi.

You’ve Never Seen A Taste Like This

Crystal Pepsi, the brainchild of former Yum Brands (KFC, Taco Bell, Pizza Hutt) CEO David Novak, was a soda unlike any other. 

“the best idea I may have ever had in my career.”

MMMMM sure, Jan. 

In 1992, Novak became the COO of Pepsi Co. after a successful series of marketing projects. He spotted words like “pure” and “clear” across all sorts of products from soap to gasoline and clearly thought soda falls somewhere on that spectrum. 

Inspired by the currently raging clear craze, Novak pitched Crystal Pepsi, a colorless cola that appears to be more refreshing and “good” for you (despite being loaded with high fructose corn syrup). 

After positive responses in test markets in Denver, Sacramento, Dallas, Providence, and Grand Rapids, Pepsi decided to expand the fresh, new beverage nationwide. Pepsi’s future was crystal clear. 

But Coke wasn’t about to let this happen without some kind of response…

A Diabolical Scheme

Coca-Cola Co.’s chief marketing officer, Sergio Zyman (aka “Aya-Cola” for his particularly aggressive management style), devised an ingenious plan to totally ruin Crystal Pepsi. For no other reason than to f**k with ‘em. 

Zyman had to be strategic in his attack. After 1985’s disastrous New Coke launch, Coca-Cola couldn’t afford to risk its flagship cola less than ten years after the blunder. That’s when Zyman thought of Tab (styled “TaB”). 

Tab, with its cute pink cans, was introduced in 1963 as an alternative for calorie-conscious consumers who just had to have a soda. The brand specifically targeted women concerned about their weight. 

“be a shape he won’t forget … Tab can help you stay in his mind.” 

Yikes, man. 

Tab was not a super successful brand under the Coca-Cola umbrella. It had fallen from 4% of Coke’s market share to just 1%. Zyman accurately believed that Tab’s reputation as a “health” soda would lend credibility to his diabolical scheme. 

Zyman was going to create a product that would intentionally fail and bring Pepsi down with it. Coke failed on purpose.

“It was a suicidal mission from day one.”

The “Born To Die” Strategy

If there were ever a kamikaze soda, Tab Clear was it. Zyman wanted to deliberately confuse consumers once Tab Clear hit the shelves. Tab Clear was a diet diet soda by its very nature. It contained no sugar, no calories, but was loaded with caffeine. 

The theory was that simply sitting on the shelf beside each other would confuse consumers into believing that Crystal Pepsi was something it wasn’t. 

“[Pepsi Co.] were going to basically say it was a mainstream drink. This is like a cola, but it doesn’t have any color. It has all this taste.

“And we said, ‘No, Crystal Pepsi is actually a diet drink.’ Even though it wasn’t. 

“Because Tab had the attributes of diet, which was its demise. That was its problem. It was perceived to be a medicinal drink.”

By the end of 1992, Tab Clear was making its debut. 

Millions And Millions To Fail

Pepsi Co. spent nearly $40 million on marketing for Crystal Pepsi. Including a coveted SuperBowl ad you can watch in the cringy-as-hell video above. 

Not even SNL could parody that ad. It’s unparodyable. Nobody said Pepsi did nothing wrong here. 

To begin their calculating takedown, Coke launched Tab Clear in 10 cities and spent minimally on marketing and advertisements. They made just enough noise to give Crystal Pepsi an identity crisis. 

By the end of 1993, Crystal Pepsi grabbed just 0.5 of the market. Zyman’s plan had succeeded. 

“Within three to five months, Tab Clear was dead. 

“And so was Crystal Pepsi.” 

Lessons Learned

Crystal Pepsi had spent millions in development, more in marketing, and totally flopped. Tab Clear had about two months of development and significantly less on marketing and succeeded in its mission. Coke failed on purpose and it worked.

On top of that, despite marketers’ best efforts, the clear craze never caught on. Different products from computers to GameBoys featured clear cases, but those faded out in the early 2000s. People just weren’t that into it. 

Even though Crystal Pepsi was an embarrassment for Pepsi Co., the infamous clear soda still makes promotional comebacks. Just for giggles. 

It just goes to show that no matter how certain you are in your concept and how much money you throw at it, there’s someone waiting in the wings to totally screw you over.