Coke is canceling 200 drink brands

Cans of diet cola Tab brand soft drink produced by the Coca-Cola Company are displayed at a supermarket in the Brooklyn borough of New York, on July 26, 2011. Tab is one of 200 drink brands being cancelled by the company.

Coca-Cola is saying goodbye to 200 brands, or half of its portfolio.

The beverage giant had already announced that it will discontinue some beloved, if outdated, drinks, like Tab, Zico and Odwalla. Thursday was the first time the company said it would get rid of 200 of them.

Reducing the portfolio will allow Coca-Cola to focus on its most profitable offerings, the company explained. Those include its core products like Coca-Cola Zero Sugar as well as brands that fit into trendy new categories, like Topo Chico hard seltzer and AHA, a caffeinated seltzer the company launched last year.

There's a stark difference between Coca-Cola's successful brands and its struggling ones, CEO James Quincey said over the summer. He explained that the underperforming beverages have "little to no scale," and that their sales represent only 2% of total revenue.

Culling the brands is one of a number of strategies the company laid out this summer to help it grow. Coke says the move will free up resources to invest in higher-growth drinks.

Coca-Cola has had a hard time during the pandemic because of restaurant closures. In the third quarter, net revenues declined 9% to $8.7 billion.

Its results still beat Wall Street's expectations, and the stock was up about 2% before the market opened Thursday.

Support Local Journalism

Now, more than ever, the world needs trustworthy reporting—but good journalism isn’t free. Please support us by subscribing or making a contribution today.

(0) comments

Welcome to the discussion.

Please log in, or sign up for a new, free account to read or post comments.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.