Cure-Alls & Snake-Oil?

Coca-Colatm is being sued by a non-profit public interest group, on the grounds that the company's vitamin water products make unwarranted health claims. Okay. So how do you suppose that Big Business is defending itself?  In a feat of skewed logic, lawyers for Coketm are defending the company by asserting this thinking: 

 "No consumer could reasonably be misled into thinking vitamin water was a healthy beverage."

Does that mean that a consumer would have to be "unreasonable" to in order to come to the conclusion that a product named "vitamin water" (products that have been aggressively marketed as a healthy beverage), actually HAVE health benefits?  Snake oil by another name?  

That IS perfect crazy insanity ... Me Thinks!