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Coke Finds Japan A Fertile Testing Ground For New Products

Sparkling jellied Fanta? Pureed fruit in a pouch? Cold, sweet jellied coffee in a can? Just 15% of Coca-Cola's business in Japan, where fickle drinkers expect new beverages by the season, is Coke itself, Chana R. Schoenberger reports. And that means that it uses its nearly 1 million vending machines to test all sorts of concoctions that may, or may not, see the light of day elsewhere.

"We've become a lab for other markets to learn from," says Japan head Daniel Sayre, who sold $16 billion worth of drinks last year for a one-third market share in the country. Japan is Coke's fifth-biggest market, and its 60 brands push out about 300 new products a year.

Last year's launch of Furu-Furu Fanta, a sparkling jelly made to be shaken up, was a breakout success in Japan. Currently, Qoo (pronounced "Koo") -- vitamin-laden fruit purees in squishy pouches -- are popular with schoolchildren; adults drink something similar under the Minute Maid brand. But the most profitable line, according to Goldman Sachs analyst Katsunori Tanaka, is Georgia canned coffee.

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