• by Sarah Mahoney  @mahoney_sarah, March 15, 2007

Think of it as a nutra-cosmeceutical. Coca-Cola and L'Oreal are said to be testing a new tea-based beverage that promises to improve women's skin. Brandweek reported that the tea-based ready-to-drink beverage, called Lumae, might be introduced in 2008 and sold through such high-end retailers as Saks Fifth Avenue.

A spokesman for Coca-Cola declined to comment on the report, and says the company doesn't discuss products in development. But such a launch makes sense, as soft-drink companies continue their scramble away from the fizzy stuff. And functional foods--especially beverages--have been a major growth vehicle for U.S. marketers. Retail sales of functional/fortified foods rang in at $36 billion in 2006, up 18% over the prior year, reports the Natural Marketing Institute.

But adding a skincare twist to that functionality creates an even bigger category. The U.S. cosmeceutical market--any skincare product that promises pharmaceutical-like benefits, such as anti-aging properties--is estimated at $12 billion, says Packaged Facts.

Even if thinking about moisturizers doesn't exactly make you thirsty for tea, a Coke/L'Oreal pairing would hardly be original. After all, several years ago, food giant Nestle formed a partnership with L'Oreal to develop cosmetic supplements, marketed as Inneov.

In 2004, Coke paired with cosmetics powerhouse Shiseido, marketing a weight-loss beverage called Love Body in Japan.

And just last month, Group Danone--a pioneer in probiotic yogurt marketing--reportedly introduced a yogurt drink called Essensis in several European countries, enriched with antioxidants and green tea extracts. Drinking one bottle daily for six weeks is said to improve the skin's texture.