Notable beverages with countless international retailers are about to be terminated & recalled. This follows after the Coca-Cola Corporation announced that half their brands are being removed from production. Most of these brands aren’t operational in North America, with this announcement more affecting Europeans & Asians. Collectively, there’ll be two hundred brands discontinued by year’s end. This follows after quarterly statistical data revealed that these beverages accounted for 1% of Coca-Cola Corp’s total profits. The number of resources & attention required to grow these branded beverages has cost Coca-Cola more than profits have sustained.
There could’ve been an opportunity for Coca-Cola Corp to continue supporting these 200 branded beverages. However, financial concerns relating to the coronavirus pandemic forced a directional change in business operations. Notable brands that’ve been eliminated included Tab, the first diet soda released by Coca-Cola for global consumption. Zico Coconut Water & Northern Neck Ginger Ale have also been discontinued. Additional discontinued beverages include:
- Odwalla Juices
- Diet Coke Feisty Cherry Flavour
- Coca-Cola Life
- Delaware Punch
The United States of America & Canada won’t see Coca-Cola beverages eliminated from their product shelves in 2020. However, company spokespersons haven’t confirmed if that could change throughout the 2021 fiscal year. Continued losses on certain beverages could prompt their discontinuation.
Eliminating these beverage brands will provide the Coca-Cola Corporation with the necessary finances to increase marketing campaigns on other drinks. It’s known that Coca-Cola wants to increase advertising for Topo Chico Hard Seltzer and AHA Flavoured Sparkling Water. It’s expected that Coca-Cola Energy will also receive a notable marketing campaign.
Most wouldn’t expect that Coca-Cola Corp would report international revenue losses during the coronavirus pandemic. It shows that no company can avoid financial burdens associated with COVID. Quarterly results showed Coca-Cola Corp had revenue fall by 9%. This volume is lower than the revenue losses in Q2, which sustained a 24% drop. Coca-Cola cannot risk a continued decrease in profits & must begin evaluating where targeted funds are best engaged. Discontinuing ineffective beverage brands frees up the finances needed to sustain margins through the continuing pandemic. Consumers can anticipate an influx of advertisements from Coca-Cola with their remaining brands.