Analyse this case by identifying problems, analyzing the problems and suggest some solutions.

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4-1 Introduction The company POM Wonderful, LLC has become renowned for its hour-glass shaped bottles of pomegranate juice. Founded in 2002, the mission of POM Wonderful is to introduce and supply consumers with the highest quality and best-tasting pomegranates and pomegranate food products. The pomegranate has become particularly popular for its exotic sensory appeal and high content of antioxidants. The company was founded by billionaire industrial agriculture couple Stewart and Lynda Rae Resnick. Shortly after it was founded, the company's pomegranate products took off with revenues for the company growing from $12 million to $91 million. POM Wonderful has largely based its success on marketing claims concerning its healthy attributes and its ability to help reduce chances for disease. However, in the past few years it has been challenged by the government regarding the truthfulness of its advertising claims. The Federal Trade Commission (FTC) determined that POM Wonderful had made unsubstantiated claims about its products. Although an appeals court supported the FTC's findings, it did strike down one aspect of the FTC's ruling, providing a partial victory to POM Wonderful and other companies that make health claims about their products. This case begins by giving some background information on POM Wonderful and the global market of functional food and drinks. This market has shown significant growth during the past decade, as superfruit (exotic fruit) as an ingredient has grown in popularity due to its value of combining health benefits with a good taste profile. We examine POM Wonderful's brand positioning in the market. Next, this case describes some of POM Wonderful's advertising claims and why they were challenged by the FTC. It concludes with a discussion of the implications this ruling will have on the advertising claims of POM Wonderful and similar companies 4-2 Background POM Wonderful, headquartered in Los Angeles, California, produces a line of pomegranate juice and other blended juice beverages, including pomegranate juice mixed with blueberry or cherry, as well as tea of various flavors and 43-ounce containers of fresh pomegranate arils (the seed pods of the pomegranate) The pomegranates are grown in the central and southem San Joaquin Valley of Central California, both in the company's own orchards as well as orchards in the surrounding area. The juice is extracted mechanically from the fruit to create its famous lines of juices, POM Wonderful currently has three main product categories: Juices: Pomegranate, POM Blueberry, and POM Cherry Fresh Fruit: 4.3-ounce containers of fresh pomegranate arils. POM Wonderful is the largest grower of the Wonderful Variety of pomegranates in the country, owning 18.000 acres of orchard and supplying nearly 90 percent of fresh pomegranate fruit in the United States, - POM Tea, including Pomegranate Peach Passion White Pomegranate Lemonade, Pomegranate Sweet, and Pomegranate Honey Green Many have attributed the success of the growth of the exotic fruit segment on rising consumer interest in the health benefits of these fruits, which is partly due to the well-marketed medical evidence of relevant products. POM Wonderful's advertising campaign is a good example of an organization that uses health food claims to significantly promote its products. As a result, it is able to position its juices as a premium product and price it higher 4-3 The Market for Pomegranates Due to the importance of a healthy diet, the global market of food and drink products that promote health benefits has been expanding. The rising awareness of health food and drinks has driven relevant products with considerable growth. Because consumers are showing more interest in their health in both the short and long term, healthier foods such as exotic fruits are becoming more popular. A healthier diet can reduce the risk of diseases and obesity Today's global functional food and drinks market is led by the United States and Japan. It is estimated that functional food and beverages make up 5 percent of the overall food market. Emerging markets including China and India are also embracing western lifestyles and attitudes toward health. The aging of the population is also playing its role in encouraging people to pay more attention to their health from a younger age. The rising attention to fruit and vegetable intake has fueled the growth of juice drinks, especially premium fruit juices. The pomegranate has taken off in the American market in recent years, even though it has been used as food, medicine, and a cultural icon for thousands of years in other parts of the world. The popularity of the fruit has exploded in the United States due to its high content of natural polyphenols, noted to be a powerful antioxidant. The medical acclaim it has obtained has been regarded as the biggest drive behind its success. Previous research indicates that polyphenols are powerful antioxidants that are useful in a variety of health problems, including premature aging, cardiovascular conditions, and certain types of cancer 4-4 Pom Wonderful versus Coca-Cola 4-4 Pom Wonderful versus Coca-Cola POM Wonderful has secured a strong share of the market in the pomegranate beverage area. With the success of any product comes rival brands that attempt to steal market share. As a result, market leaders tend to be aggressive in protecting their market share and ensuring that competing brands are not competing unfairly. This resulted in POM Wonderful challenging promotional claims made by Coca-Cola's rival product, Minute Maid Pomegranate Blueberry Flavored Blend. In 2007 Coca-Cola introduced its pomegranate-blueberry juice blend sold through its Minute Maid division. However, despite its promotion of blueberry and pomegranate, 99.4 percent of the beverage consisted of apple and grape juices. POM Wonderful believed this was deceptive advertising and filed a lawsuit against Coca-Cola. The company claimed Coca-Cola's promotional claims violated the Lanham Act as the name, label, marketing, and advertising of Coca-Cola's juice blend misled consumers as to its actual content, thereby causing POM to lose sales. The case was dismissed by the Ninth U.S. Circuit Court of Appeals, claiming that these allegations were the domain of the Food and Drug Administration (FDA) and that competing firms are not authorized to sue one another for false labeling or advertising POM Wonderful appealed, and the case went all the way to the Supreme Court. In 2014 the Supreme Court reversed the decision and decided that competitors can file Lanham Act claims dealing with false promotion on food or beverage labels. Despite this initial victory, a California jury later sided with Coca-Cola. It believed that POM had not proven that Coca- Cola's claims were misleading. In addition to its failed lawsuit against Coca-Cola, POM Wonderful suffered another blow when it was accused of false advertising by the FTC. 4-5 Pom Wonderful versus the FTC