The corporation intends to get rid of almost half of its brands, abandoning those that bring a minimum of income.
To date Coca-Cola owns a portfolio of 430 brands. At the same time, half of them bring the company only 2% of income. In difficult economic times, when net revenues are falling, supporting such brands is a luxury that cannot be afforded. So, in the second quarter, Coca-Cola's revenues fell immediately by 28%, which has not been observed for more than 30 years. Subsequently, thanks to the actions taken, the decline was stopped, sales began to grow again, but the growth indicators are still insufficient.
Some of these trademarks continued to exist solely because of the fans. For example, the diet drink brand Tab, launched back in the 60s, lasted so long precisely because of its established fan base, who sometimes even wrote to company representatives complaining that they could not buy their favorite brand of drink.
But tough times call for decisive action. The company has already announced its intention to get rid of Tab and Odwalla, Zico, Coca-Cola Life and Diet Coke Feisty Cherry. Now it has become known that the management plans a global review of existing brands. Some brands will be phased out globally, while others will remain in some markets. For example, Powerade sports drink will disappear from store shelves in the US, but will remain in Russia.
At the same time, the company said that they plan to launch new brands. For example, in 2021, it is planned to launch the Topo Chico Hard Seltzer alcoholic drink, intended for the Latin American market. Coca-Cola is also actively working towards coffee market.