Coca-Cola sells some of the most popular drinks in the world and generally has the muscle to make any new product it sells successful.
Of course, there have been some pretty big Coca-Colas. (IS) – Get a free report failures in recent years where the company has tried to capitalize on a trend. Few people remember Vault, an effort to compete with rival PepsiCo (ENERGY) – Get a free report Mountain dew. And 2009’s Green Tea Coke never got enough attention to be remembered or forgotten.
Related: Coca-Cola Adds New Coke and Sprite Flavors That Could Be Big Hits
However, the company’s biggest recent failure might be Coca-Cola Energy, an attempt to compete with Monster and Red Bull. That drink lasted less than a year before the company pulled the plug.
It was a surprising move because the idea of Coca-Cola Energy made sense. It was an attempt by the number one beverage company to leverage its namesake brand to enter the growing energy drink market.
Consumers, however, have never been so interested. They may have tried it, but the product was never popular enough to gain enough market share for Coca-Cola to commit to the product long term.
That same script has been repeated in another market in explosive growth. Coca-Cola launched its Aha sparkling water brand to compete with market leaders LaCroix and Pepsi’s Bubly. It was a massive launch (Coca-Cola’s first brand debut since 2006) that simply never caught the public’s attention.
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Coca-Cola is greatly reducing Aha
Sparkling water has been a growing category led by the massive success of LaCroix. It makes sense that Coca-Cola would want to join the trend, but Aha hasn’t had a significant impact on the market. Therefore, the company has decided to close the brand, but not eliminate it completely.
“In 2024, the drinks will only be available in ‘specific channels’ and in Coca-Cola Freestyle machines, and will continue to be sold in Canada,” the beverage giant said. food diving.
Coca-Cola does not give up sparkling water. The company intends to focus its attention on growing its premium brand Topo Chico in the same space.
Sales have fallen for Aha, which replaced Coca-Cola’s previous effort in the sparkling water space, Dasani Sparkling. The brand has less than 2% share of the total market.
Coca-Cola executives have said they believe Topo Chico can become the company’s next billion-dollar brand. The company recently launched a hard-seltzer, an alcoholic version of the popular brand.
Coca-Cola sees some headwinds
Coca-Cola sales remained stable in volume in the second quarter. CEO James Quincey explained why in the company’s report Second Quarter Earnings Call.
“We’ve seen some willingness to shift to private brands in certain categories,” he said. “Across the industry, consumers are increasingly cost-conscious. They are looking for value and stocking up on sale items.”
Quincey believes Coca-Cola is well positioned to handle the current market.
“Our prices are largely set and are expected to moderate as we cycle past year’s pricing initiatives. It is more important than ever to be consumer-centric and partner with customers to offer affordable and premium propositions, which provide value through the basket and growth in incidence,” he added.
And while the company has focused on increasing sales outside of soft drinks, its namesake beverage remains a major driver.
“During the quarter, we gained volume and value share by linking Coca-Cola to consumption occasions and engaging consumers through local experiences. A great example is our Recipe for Magic, which was activated in more than 50 markets and celebrate Coca-Cola consumption with meals,” he said.
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