Coca Cola has a confusing number of brands under its umbrella. As far as I can gather, there are over seven flavours: original, lime, lemon, cherry, black cherry, vanilla and raspberry. There are at least six content variations: classic, caffeine free, light, C2, sugar free, diet and with Splenda. And there is any combination of the above available in a dozen different sized bottles and cans.

Sugar free variant Zero is now added to this confusion. At a time when many companies are rationing their portfolios to strengthen key brands, Coca Cola appears to be doing the reverse. The inclusion of Zero adds to the existing confusion and with so many variants Coca Cola is in danger of diluting its core brand as they not only undermine each other but will inevitably cannibalise sales.

Coca Cola's UK sales have declined in value by 2% since 2003 while competitor Pepsi's have increased by the same amount. Coca Cola's share price has declined by 6% since 2003 while PepsiCo's has increased by 37%. And PepsiCo is soon to overtake Coca Cola by market capitalisation as well; it is just billion short at 0 billion.

Coca Cola seems to be trying desperately to beat its rival but is fighting a loosing battle unless it changes it strategy - it can only rely on its distribution muscle for so long. Sector diversification has worked for PepsiCo, brand extension is not working for Coca Cola. Coca Cola's last attempt at a major launch in the UK with Dasani ended in disaster and the likelihood of its success with Zero, is zero.