Coca-Cola dumps Zero for sugar-free product aimed at health-conscious consumers
COCA-COLA is axing its Coke Zero soft drink and replacing it with a new look and a new name, saying “it’s really about watching that intake of sugar”.
NSW
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IT was dubbed the next best thing to the real thing — without the sugar — but Coca-Cola is dumping its popular Coke Zero soft drink and replacing it with a new look and a new name.
The global soft drink giant says its new product — Coca-Cola No Sugar — will more closely mimic the flavour of Coca-Cola Classic, while still keeping the calories down.
To support the launch, the company will hand out two million free samples of the new drink from mid-June until August and will back this up with a multimillion-dollar advertising campaign.
The introduction of Coca-Cola No Sugar comes at a time when the Australian bottler and retailer of Coke — Coca-Cola Amatil — has experienced declining soft drink sales due to consumers demanding healthier options and smaller portion sizes.
“We do know that consumers are more concerned about sugar; they enjoy sugar still, but it’s really about watching that intake of sugar,” Coca-Cola South Pacific marketing director Lisa Winn said.
She said the new product had an improved “taste and flavour profile” when compared to Coke Zero and has been tested extensively in Australia and overseas.
“Our experts in our headquarters at Atlanta have been really working on perfecting this recipe for the last five years,” she said.
The last Coke product to launch in Australia was Coke Life in 2015, which was sweetened with stevia leaf and cane sugar. This was rebranded to Coke with Stevia earlier this year due to poor sales and a lack of interest from Australian consumers.
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Coca-Cola Amatil’s earnings from soft-drink sales in Australia have plunged 27.4 per cent within the past five years from $627 million in 2012 to $455.3 million in 2016.
Ms Winn said replacing Coke Zero with Coca-Cola No Sugar after 11 years on the Australian market — Coke Zero was launched in 2006 — was a consumer-driven decision.
“It is our intention to phase out Coca-Cola Zero over time, and that’s because we believe the taste of the new product is superior,” she said.
Ms Winn said classic Coca-Cola was still the preferred form of Coke for Aussie consumers, making up 70 per cent of cola sales, but “those lower-kilojoule products are a growing part of our portfolio”.
COCA COLA AMATIL’S EARNINGS IN AUSTRALIA
2016 $455.3 million (DOWN 1.8%)
2015 $463.8 million (UP 1.8%)
2014 $445.3 million (DOWN 21.3%)
2013 $566.0 million (UP 9.3%)
2012 $627.4 million (UP 3.3%)
Earnings before interest and tax. Source: Coca Cola Amatil
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