Coca Cola has began what one might call a phased re-launch in the US, where its sales are declining. There is a cultural shift, which does not occur overnight, but builds slowly. American diet is drastically different from it was ten years ago. It is more pronounced in the $ 75 billion soda ( carbonated) drink industry. It has experienced rising consumption for decades. In the 1970s, it exceeded the consumption of tap water. In 1998, Americans were consuming 50 gallons of cola every year. The decline started in 2005. Americans now consume 450 cans of soda a year, roughly the same amount as they did in 1986. Last year, in 2013, the consumption fell by 2 per cent. Diet coke was hit hard as aspertame, the sweetener was perceived as a health risk.
Pemberton who introduced Coca Cola in 1886 has removed alcohol from his medicinal French Wine Coca tonic, in response to the local temperance movement. Thus the very start of Coca Cola was a response to a health trend. It is exactly facing the same situation now.
Coca Cola makes 500 different beverages. Almost 25 per cent of world’s carbonated drinks’ consumption is accounted for by Coke. Pepsi is far behind, at 11 per cent.
Coca Cola is so secretive about its formula. Even the employees mixing the ingredients of the syrup concentrate do not know the names of the individual ingredients.
However, as it has come under assault, the company has realised that it cannot remain silent. In its own way the company is trying to open up.
In the US, Coke has introduced 20-ounce plastic bottle, three times bigger than its original 6-ounce glass bottle. It is not fair to sell drinks in such aggressive sizes.
A fifth of all US adults are obese by 1999. The number today is 35 per cent. Obesity amongst children has tripled.
The scientific community attribute the problems to fast food and sodas.
To bypass the decline in the US sales, the company concentrated on emerging markets such as India and Africa for a while. It has worked so far. The global revenue has gone up.
Coke has entered into non-cola non-carbonated drinks market by forming Venturing and Emerging Brands ( VEB ) division. It purchased some small start ups.
Coca Cola has to re-position itself so that people do not feel guilty when they drink it. They should ideally see coke as a treat.The latest ads describe it as a can of happiness.
Coca Cola is trying other sweeteners like stevia instead of aspertame. However, stevia does not taste great in colas.
The company is masterful at selling emotion along with its drinks.