Coca-Cola is set to step into the mid-calorie, mid-carb cola ring, according to press reports. Industry newsletter Beverage Digest cited sources late last week as saying that Coke is considering launching a drink with half the calories and carbohydrates of Coke Classic under the name C2.

Coke neither confirmed nor denied the speculation, but issued a vague press release in keeping with its reaction to speculation about new products.  "Innovation is a part of everything we're doing, and we're always looking for ways to strengthen and expand the franchise," a spokesman said.

Pepsi announced earlier this month that it will release its own mid-carb cola, Pepsi Edge, in the late summer. Beverage Digest reported that Coke may look to launch C2 in June.

Dr Pepper/Seven Up is also considering a mid-calorie soft drink.