Coca-Cola launches new 'Happiness Factory' ad

Coca-Cola is defying the recession with rising sales and a new advert in the Happiness Factory series, taking viewers inside the fantastical world of a Coke vending machine.

The iconic cola brand enjoyed a 3.6% boost in retail sales in 2008 and its best January sales this year, despite the increasingly gloomy economic news. Annual retail sales for Coca-Cola in the UK reached £514.5m by the end of 2008 - nearly a third of the overall cola sector, according to AC Nielsen data.

The new ad, shown on MediaGuardian.co.uk, created by Wieden + Kennedy Amsterdam, is the latest instalment in the Happiness Factory series, which started in 2006. The ads show animated characters who make Coca-Cola in a magical land inside the vending machine and in the latest version, both the human purchaser and the Happiness Factory workers are tired and in need of the uplifting effect of a Coke.

The campaign is global but will launch in the UK on Tuesday. The multimillion-pound UK campaign, bought and planned by Vizeum, includes TV, radio, online, outdoor, mobile and a cross-promotion with Xbox.

The Xbox partnership includes a giveaway of 3m Xbox loyalty scheme points, online gaming gurus giving tips and advice and a Coca-Cola skin to let gamers customise their Xbox dashboard.

Online elements include a "Happiness Hub" microsite on Bebo and an MSN games application and music track. Consumers can also download Happiness Factory ringtones for free from the Coke's Piccadilly Circus billboard using bluetooth.

Cathryn Sleight, the marketing director at Coca-Cola Great Britain, said the different platforms helped the brand reach different consumers in innovative ways.

"For example using key teen passion points of music, social networking and gaming allow us to reach a new generation of Coke fans, whilst more traditional routes continue to reach the older demographic," she said.

Including Diet Coke and Coca-Cola Zero, 2008 revenue reached £970.41m.

Sleight would not comment on Coca-Cola's planned marketing spend for 2009 but said: "We recognise that this year will be tougher than last, but our focus is on investing to grow and continuing to build our brands as we have done for many years."

 To contact the MediaGuardian news desk email editor@mediaguardian.co.uk or phone 020 3353 3857. For all other inquiries please call the main Guardian switchboard on 020 3353 2000.