Virgin Cola Enters the Soft Drink Wars

British tycoon Richard Branson is taking on soft drink giants Coke and Pepsi with the launch of his new Virgin Cola. Other companies within Branson's Virgin Group include Virgin Atlantic Airways and Virgin Records.

"I am so excited by the thought of Virgin Cola taking on Coke and Pepsi in their home territory," Branson said in a statement. "I have always believed that you can never truly be an international cola until you have launched in the home of the colas - America."

Virgin Cola plans to launch in New York, Los Angeles, San Francisco, Boston, Washington and Baltimore and initially will be available through convenience stores. The company said a national roll out and a multimillion-dollar advertising campaign will follow.

Virgin's regular and diet colas will be priced in line with Coke and Pepsi.

"We have no intention of sparking a price war and we are sure that Coke, Pepsi and the rest of the cola brands here in the United States will not be interested in a price war either," the company said.

Edited by Pam Ahlberg