Coca-Cola has shut down Odwalla, a line of juice smoothies that failed to grow, and will do the same with other under-performing brands, CEO James Quincy said.
Coke will continue is shutdown-era practice of focusing on best-selling products to streamline supply chains.
The company fields about 400 different brands, many country-specific. Combined sales of more than 200 of the brands make up just 2 percent of Coke’s revenue.
“We haven’t been aggressive enough” in killing zombie brands, Quincey admitted.
Coke’s overall sales dropped 28 percent to $7.15 billion in the quarter that ended on 26 June, compared to $10 billion a year earlier.
The shutdown erased sales to restaurants, sports stadiums, theaters, and other “away from home” venues accounting for about half of Coke’s sales. The loss was partially offset as countries began to reopen their economies, the company said.
TRENDPOST: What Coke is doing with dropping brands, so, too, will many other large corporations across the retail, food and beverage, hotel, hospitality, restaurant sectors, etc. – also do. Cutting costs will be the number one survival strategy for many companies that are over extended and deep in debt.
While some of the dropped product lines will pick up, many will disappear, leaving less choice for consumers to select from.