Coca-Cola has announced saying goodbye to 200 of its drink brands by the end of this year. The announcement by this beverage king was made on this Thursday, October 22, 2020. As a total beverage company, we are prioritizing bets that have the potential for growth and scale. Learn more about how we are optimizing
Coca-Cola has announced saying goodbye to 200 of its drink brands by the end of this year. The announcement by this beverage king was made on this Thursday, October 22, 2020.
As a total beverage company, we are prioritizing bets that have the potential for growth and scale.
— The Coca-Cola Co. (@CocaColaCo) October 16, 2020
It is high time for the popular drink company to slash almost half its portfolio and discontinue with many beloved yet outdated drinks. According to CNN, Coca-Cola is dropping it’s first-ever diet soda, Tab, after six decades. It is also canceling the coconut water manufacturer, Zico, and the juice brand Odwalla.
The company believes, narrowing its portfolio will help the brand to prioritize its more profitable provisions. For instance, its core product, Coca-Cola Zero Sugar, will gain importance now. Furthermore, it will continue to work with Topo Chico and AHA because these are brands that fit in its new categories like hard seltzer and caffeinated seltzer, respectively.
James Quincey, the CEO of Coca-Cola, explained about the brands that will follow its portfolio during an analyst call. The names of its partner brands were not given; however, Quincey mentioned cutting off the ‘hydration’ category from its list. Brands like Powerade, Dasani, Zico, and Vitamin Water are major ones in this category.
He explained that water and sport drink volumes decreased by 11% during the third quarter. Similarly, the other brands about to get chopped off from the portfolio are only traded in particular markets and not nationwide.
The CEO clearly discussed the difference between Coca-Cola’s topmost brands and its struggling ones. He believes that the underachieving drinks have “little to no scale,” and they generate only 2% of the total company’s revenue.
Withdrawing from these brands will help the company to invest more in its top and growing drinks. The company laid out this plan during summers and will follow it to keep the business going successfully.
Sadly, the company has faced a hard time throughout the pandemic due to restaurant closures. Interestingly, its statistics were still higher than those of Wall Street’s when the market opened on Thursday. The company will be discounting all these brands by December 31, 2020. So, consumers will have to act fast.
Stay tuned to find out further details from Coca-Cola.