Coca-Cola scraps TaB diet soda after almost 60 years
Coca-Cola Life is also underperforming and being discontinued
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19 Oct 2020 --- Shortly after announcing plans to slim down its portfolio as part of a strategic review earlier this month, The Coca-Cola Company is set to retire a range of underperforming beverages from its global portfolio by December 31. Among these brands are TaB diet soda and Coca-Cola Life in the US market.
Tab was a diet cola soft drink created and introduced in 1963 as Coca-Cola’s first diet drink. The zero-calorie soda rose in popularity in the 1980s and maintained a small following over the last few decades, primarily among consumers who grew up with the brand. Its popularity began to dwindle in the early eighties after the introduction of Diet Coke.
Coca-Cola’s downscaling move is pegged as a method of freeing up resources to invest in growing trademarks like Minute Maid and Simply.
“We’re challenging ourselves to think differently about our brands to accelerate our transformation to a total beverage company,” says Cath Coetzer, global head of innovation and marketing operations at 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.”
Other retired brands in the US include Odwalla, Zico and Diet Coke Feisty Cherry, as well as regional offerings like Northern Neck Ginger Ale and Delaware Punch.
Vegitabeta (Japan) and Kuat (Brazil) are among the products leaving Coca-Cola’s international portfolio.
Pandemic accelerates shifts in beverages
Coca-Cola highlights that the zero-calorie sparkling beverage category has changed significantly in recent years, both in terms of its core consumer base and preferences.
Coca-Cola pegs the move as a method of freeing up resources to invest in growing trademarks like AHA, Minute Maid and Simply. Retiring products under TaB paves the way for additional investment in what Kerri Kopp, group director of Diet Coke, Coca-Cola North America, calls a “one-two punch with a pair of complementary, powerhouse brands” – Diet Coke as the top no-calorie sparkling brand in the US and Coca-Cola Zero Sugar as the leading growth engine for the category.
“This is not a bottom-line efficiency play,” he notes. “It’s a top-line growth play.”
Plans to streamline the company’s beverage lineup were underway well before the COVID-19 outbreak, but the pandemic promoted leadership to move faster. Ongoing COVID-19 supply chain challenges and shifting shopping behaviors prompted the company to fast-track its plan.
“This is a golden opportunity for us to accelerate the curation of the portfolio – which was an ongoing need – and actually bring all of that to fruition in a much shorter time frame,” Coca-Cola chairman and CEO James Quincey adds.
“We believe it will set us up with more momentum behind stronger brands as we come out of this crisis.”
Freeing up investment resources
The beverage giant will further direct funds to the launch of promising innovations like Topo Chico Hard Seltzer, Coca-Cola Energy and AHA flavored sparkling water.
“We’ve worked closely with our bottling partners and customers to streamline our SKUs – not just products, but also packaging configurations,” says Brad Spickert, senior vice president, innovation and commercialization at Coca-Cola North America.
“We’re creating oxygen to grow offerings we believe have the opportunity to be bigger and more scalable. AHA flavored sparkling water is an example of a priority innovation that requires significant resources – from branding and marketing, to retail sales and commercial execution.”
Earlier this year, it was announced that a team of technical experts is helping Coca-Cola North America launch “breakthrough beverages” in disruptive categories – including kombuchas with less sugar, cultured ciders, keto-friendly smoothies and cold-brew coffees – in “record time.”
Edited by Benjamin Ferrer
