Coca-Cola Cuts 200 brands, due to COVID Losses

By Yehudit Garmaise                

   After suffering great financial losses due to COVID, Coca-Cola announced this week that it decided to cancel half of its brands, which number up to 200 different beverages, to better focus on its better selling brands.

   This announcement follows another statement earlier this month, that the soda giant would cut Odwalla juices, Zico coconut water, Diet Coke Feisty Cherry, and Coca-Cola Life, which the company said were “underperforming zombie brands.” Coca-Cola also will cut other brands, such as Northern Neck Ginger Ale, and Delaware Punch, which are only sold in certain regions.

  Just last week, Coca-Cola announced that after 60 years, the company would discontinue its once popular sugar-free soft drink Tab, a favorite of many in the 1970s.

    Fans of Coca Cola Zero Sugar, Minute Maid, Topo hard seltzer, and AHA flavored sparkling water can rest easy because those brands are profitable beverages on which the company wants to focus.

   Drinks, however, in the “hydration” category, such as Powerade, Vitamin Water, and Zico, will see more cuts, said CEO James Quincey in a statement.

    While flavored waters seem to be on their way out, simpler bottled water brands, such as seltzer, tonic, and club soda continue to sell well, and whose sales have increased by 61%.

 In addition to cutting brands, unfortunately, Coca-Cola also announced that to accommodate for COVID losses, some 300 staff members will lose their jobs. 

    In the third quarter of 2020, the soda giant had reported a 9% decline in net revenues, which it attributed to the collapse of the hospitality, restaurant, and entertainment businesses due to COVID.

   Business Insider reports that Coca Cola lost many sources of revenue after many restaurants started to close and people dined out much less.

   In addition, Coca-Cola suffered from a decline in sales at places like stadiums, arenas, and movie theaters, which were shuttered due to COVID-19. However, Fairlife milk and the Simply juice brands sold as more consumers stayed home.

     “Throughout this year’s crisis, our system has remained focused on its beverages for life strategy,” Quincey said in a statement. “We are accelerating our transformation that was already underway, shaping our company to recover faster than the broader economic recovery. While many challenges still lie ahead, our progress in the quarter gives me confidence we are on the right path.”