NON-PERFORMING BRANDS NIXED

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.

2 Comments
  1. John Gibbons 5 days ago

    all they have to do is add cocaine back in it, helicopter the unemployment funny money, sales are UP!

  2. Craig Bradley 4 days ago

    MERCHANDISING THE CUSTOMER

    The process of culling products at retail stores has been going on for years. Remember those hard to find items at the hardware store that were so useful? Not so much anymore. In fact, Kroger stopped selling plain old sponges in their retail grocery stores in the last few months. If it does not sell, then it gets the axe. Consumers have fewer choices and often, have to accept facsimiles that don’t meet their individual needs as well or that cost more.

Leave a reply

©2020 The Trends Journal

Log in with your credentials

Forgot your details?