The Coca-Cola Company is cutting its portfolio in half, kicking at least 200 beverage brands to the curb by end of year.
The money-saving move will allow Coke to focus on its most profitable products so that it may “emerge stronger from the pandemic,” the company said in a news release Thursday.
The news comes nearly a week after the beverage giant announced it would discontinue its once popular sugar-free soft drink Tab after more than 60 years on shelves across the world. Other “underperforming” brands on the way out include Odwalla, ZICO coconut water, Diet Coke Feisty Cherry and regional offerings like Northern Neck Ginger Ale, the company said.
Popular “hydration” brands including Powerade and Dasani could also see cuts, Coca Cola’s chairman and CEO James Quincey told CNN.
“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.”
Coke boasts more than 500 brands worldwide, including Sprite, Minute Maid, Honest Tea, Simply and others. A full list of Coca-Cola’s U.S. and international brands can be found here.
Explaining its “portfolio reset,” the company said it plans to phase out several brands by slashing its current holdings by approximately 50% to present a streamlined portfolio of 200 master brands. The overhaul will allow Coke to launch more “promising” offerings like Topo Chico Hard Seltzer and Coca-Cola Energy.
“We’re challenging ourselves to think differently about our brands to accelerate our transformation to a total beverage company,” said Cath Coetzer, global head of innovation and marketing operations for Coca-Cola. “This isn’t about paring down to a specific number of product offerings under our brands. The objective is to drive impact and growth.”
Consumers will have to act fast. Select Coke products will be discontinued by Dec. 31, according to the company.
McClatchy News contacted the Coca-Cola Company for further comment and is awaiting response.