What will they think of next? According to Brandweek, Coke and French cosmetics giant L’Oreal will be launching a “skin friendly” tea in 2008.

L’Oreal (with skincare brands Skinceuticals, Dermablend and Vichy) and Coke are looking at a very lucrative demographic for this product, dubbed Lumaé.

Still in development, this drink is being formulated to help women care for their skin. The target market according to the article: “. . .active, influential women over the age of 25 who embrace health and wellness.”Speculation and news reports abound on the new venture.

But nutraceutical drinks are nothing new. They started in the natural products industry and were readily embraced by mainstream companies that saw great opportunities to expand distribution in otherwise crowded, or slow-performing, beverage categories. And let’s face it: soft drink sales are continuingly flat (no pun intended) to nosediving, depending upon the brand. Within the next five years, the beverage industry predicts bottled water sales will overtake soft drinks for the first time ever.

The best-known functional drinks include vitamins, herbs and other nutrients that are geared for women’s needs, better heart function, and the favorite products of all: energy drinks. Think Tropicana Healthy Heart or Healthy Kids Orange Juice, V8 Splash and V8 Splash Smoothies beverages, and Red Bull, as great examples.

Of course, companies that have made claims about these products, have found themselves on a legal slippery slope in many cases. So, this L’Oreal-Coke partnership promises to be an interesting one. We’ll have to wait and see how they choose to promote Lumae.

More interestingly, Lumae will not be distributed in the usual channels as soft drinks. Coke plans distribution in stores like Saks Fifth Avenue, other upscale retailers and, perhaps, beauty salons. As Brandweek’s article points out: “This could ruffle bottlers’ feathers considering beauty salons and the like aren’t the typical stops on a distributor’s route.” So of course this would make for some interesting logistical shifts. If any company can make all of this happen, I would expect Coke could, as the most influential brand and largest beverage company in the world.

• Still. . .who knows how this product will perform at retail?
• Will women consumer embrace this concept? Or will they be skeptical this will benefit their skin, and stick to buying skin care creams and moisturizers instead?
• Do you think that specialty retailers and beauty salons will be able to even sell such a product? No doubt, there will be built-in incentives for them to do so, but it still makes me wonder. . .
• What do you all think of products like this? And marketing products like this?
• Do you think it will be a new category maker and a boom or a bust?