Coca-Cola has decided
to end the supply and production of 200 brands, which is around half of its
The company has
announced that it will discontinue some of its beverages as they have become
outdated. Some of them include Tab, Zico, and Odwalla.
You might think why the
company has taken such a drastic step, is it facing any financial loss or hard time in the market? But
this move will actually help them focus on the most profitable offerings. This
way, Coca-Cola can pay more attention to Coca-Cola Zero Sugar, Topo Chico Hard Seltzer,
and AHA, which is a caffeinated seltzer launched by the company a little over
a year ago.
According to CEO James
Quincey, the list has already been approved. He didn’t provide us with any
specific names but he did say that the hydration category will experience more
cuts. So you can expect to see Vitamin Water, Zico, Powerade, and Dasani out of
Apparently, the water
and sports drink volume dropped a significant number in the third quarter.
Quincy has said that a lot of the brands that will face cutting have a small
market in select countries.
When you compare the
successful and unsuccessful brands of Coca-Cola, you’ll see a stark difference.
It’s obvious that the brands that underperform have absolutely no scale and
they end up collecting a2 percent total revenue.
This is understood as a
strategy by the company that will eventually pay off in the long run. With the
restaurants shuttered, the company faced a significant drop and its revenue
declined 9 percent, which amounts to$8.7 billion.