Coca-Cola Makes Strategic Decision to Say Goodbye to 200 Brands
Coca-Cola, one of the most emblematic brands in the world, has made a significant strategic decision that will have a major impact on its extensive portfolio. The company is bidding farewell to an average of 200 brands, with the aim of focusing on more profitable products.
This move will directly affect more than half of the brands belonging to The Coca-Cola Company, as they shift their focus to more lucrative products. Some of the brands that will no longer be part of the company’s portfolio include Tab, Diet Coke Fiesty Cherry, Odwalla juices, and Zico coconut water.
The decision to restructure has been in the works for some time, but it was accelerated by the pandemic. James Quincey, president and CEO of Coca-Cola, stated, “The pandemic pushed us to be bolder and challenge traditional ways of doing business.”
The company’s decision to part ways with less profitable brands is not uncommon in the business world. Many large companies in various sectors have chosen to eliminate less profitable brands or divisions in order to refocus on their strengths.
Coca-Cola’s goal is to boost sales of its star products and discontinue those that are not as successful. The company will be focusing on carbonated drinks, hydrating drinks, juice drinks, coffee-based drinks, and milk-based drinks.
While it remains to be seen whether this change will be beneficial for the brand, Coca-Cola’s outlook is certainly evolving. The restructuring also involves a transformation in the company’s commercial strategy.
The future of Coca-Cola will depend on the success of this restructuring. If the company can focus on its most profitable products and innovate in the development of new products, it is likely that it will maintain its position as one of the most important and weighty brands in the world.