The story of New Coke is a fascinating case study in marketing, consumer behavior, and the power of nostalgia. In April 1985, the Coca-Cola Company, facing declining market share, made the bold decision to reformulate its flagship beverage. This change, dubbed "New Coke," was met with widespread consumer backlash, ultimately leading to the reintroduction of the original formula as "Coca-Cola Classic." This article delves into the history of this pivotal moment in Coca-Cola's history, exploring the factors that led to the reformulation, the public's reaction, and the long-term consequences for the brand.
The Cola Wars and Shifting Consumer Preferences
After World War II, Coca-Cola dominated the cola market, holding a commanding 60 percent market share. However, by 1983, this share had dwindled to under 24 percent, primarily due to increasing competition from Pepsi-Cola. Market analysts observed that baby boomers were increasingly opting for diet soft drinks as they aged and became more health-conscious. Meanwhile, younger drinkers, who represented the growth segment for full-calorie colas, showed a preference for Pepsi.
Simultaneously, the overall market for colas experienced a decline in the early 1980s as consumers shifted towards diet and non-cola soft drinks, many of which were also sold by Coca-Cola. These trends prompted Coca-Cola's senior executives to initiate a secret project, led by marketing vice president Sergio Zyman and Coca-Cola USA president Brian Dyson, to develop a new flavor for Coke.
The Birth of New Coke: A Sweetened Sensation
The new formula was sweeter than the original Coke and Pepsi. This sweeter cola overwhelmingly outperformed both regular Coke and Pepsi in taste tests, surveys, and focus groups. Even in the southeastern United States, a stronghold for Coca-Cola, the new flavor was narrowly preferred. This preference grew even stronger when testers were informed that the new taste was also a Coca-Cola product.
While most testers indicated they would buy and drink the new product if it were Coca-Cola, acknowledging it would take some getting used to, a significant minority, around 10-12 percent, expressed anger and alienation at the prospect, even suggesting they might stop drinking Coke altogether. Despite these warning signs, the surveys, which were considered more significant due to standard marketing practices of the time, were less negative than the taste tests and played a crucial role in persuading management to change the formula in 1985, coinciding with the drink's centenary. The company downplayed the negative feedback from the focus groups, a decision that would later prove to be a critical misstep.
Read also: The Hoxsey Diet
Management dismissed the idea of introducing the new flavor as a separate Coca-Cola variety. Bottlers had already voiced concerns about adding more products to the line after Diet Coke's introduction in 1982. Cherry Coke was launched nationally, almost simultaneously with New Coke during 1985. Many bottling companies had sued the company over syrup pricing policies. A new Coke variety competing with the original could cannibalize Coke's sales and increase Pepsi's market share.
Roberto Goizueta, then CEO of Coca-Cola, had previously improved sales at the Bahamas subsidiary by tweaking the drink's flavor. He believed that changing Coke's flavor could boost profits. Goizueta believed it was "New Coke or no Coke" and that the change must be open. Goizueta secured the blessing of his mentor and predecessor, Robert W. Woodruff, for the reformulation, although some doubted Woodruff fully understood Goizueta's intentions.
The Launch and Immediate Backlash
New Coke was introduced nationwide on April 23, 1985, marking the end of production for the original formula later that week. Initially, New Coke was sold in original Coke packaging in many areas, as bottlers used up existing cans, cartons, and labels. Old cans containing New Coke were identified by their gold-colored tops, while glass and plastic bottles now had red caps, instead of silver or white, respectively.
The press conference in New York City to unveil the new formula was met with hostility. Pepsi, concerned that New Coke would reverse its gains, had already fed questions to reporters. Coca-Cola's CEO, Goizueta, described the new flavor as "bolder," "rounder," and "more harmonious," defending the change by asserting that the drink's secret formula was not inviolable. He pointed out that Coca-Cola had sought kosher certification in 1935, making two formula changes to meet those requirements. Goizueta refused to admit that taste tests had driven the change, calling it "one of the easiest decisions we've ever made."
When asked if Diet Coke would also be reformulated if New Coke succeeded, Goizueta responded curtly, "No. And I didn't assume that this is a success." Coca-Cola launched the new formula with marketing events in New York City and Washington, D.C., giving away free cans to workers renovating the Statue of Liberty and to the public in Lafayette Park. New Coke was immediately available at McDonald's and other drink fountains. Initial sales figures mirrored market research predictions, with most Coke drinkers resuming purchases at similar levels.
Read also: Walnut Keto Guide
Public Outcry and Regional Resistance
Despite acceptance among some loyal Coca-Cola drinkers, many others resented the change, echoing the sentiments expressed in the focus groups. Much of the criticism came from the southern US states, where Coca-Cola was considered a part of their regional identity. A University of Mississippi professor noted that "changing Coca-Cola is an intrusion on tradition" and would not be well received in the South. One Alabama resident questioned why the new flavor was introduced in New York, while an Anniston Star columnist insinuated that the flavor change was a Communist plot, referencing Goizueta's Cuban heritage. The Atlanta Journal-Constitution reported that most patrons at The Varsity, a popular local restaurant, preferred the old formula.
The company received over 40,000 calls and letters expressing anger or disappointment, including one letter addressed to "Chief Dodo, the Coca-Cola Company." Another letter requested Goizueta's autograph, suggesting that the signature of "one of the dumbest executives in American business history" would become valuable.
Criticism extended beyond the South. Chicago Tribune columnist Bob Greene wrote widely reprinted articles ridiculing the new flavor and criticizing Coke's executives. Comedians and talk show hosts like Johnny Carson and David Letterman regularly mocked the switch. Gay Mullins, a Seattle retiree, formed the Old Cola Drinkers of America to lobby Coca-Cola to reintroduce the old formula or sell it to someone else. His organization received over 60,000 phone calls.
Behind the Scenes and the Decision to Revert
Despite ongoing resistance in the South, New Coke continued to perform well in the rest of the country, particularly in the West. However, executives were unsure how international markets would react. Goizueta noted that Coca-Cola employees who liked New Coke felt pressured to remain silent.
Some Coca-Cola executives had been quietly advocating for the reintroduction of the original formula as early as May. By mid-June, as soft drink sales typically increased, numbers showed that New Coke was leveling off among consumers. Executives worried that social pressure was impacting their bottom line.
Read also: Weight Loss with Low-FODMAP
In addition to public protests and boycotts, Coca-Cola bottlers, including those still suing the company over syrup pricing policies, voiced concerns. The 20 bottlers still in litigation argued that the formula change undermined the company's defense that the new formula was unique and different from Diet Coke, justifying different pricing policies. Bottlers, especially in the South, faced personal attacks and ostracism due to the change.
The Coca-Cola board decided to resume production of original Coca-Cola in early July. Company president Donald Keough later revealed that the decision was solidified after visiting a restaurant in Monaco where the owner proudly served "the real thing, it's a real Coke."
The Return of Coca-Cola Classic and the Aftermath
On July 11, 1985, Coca-Cola executives announced the return of the original Coca-Cola formula, 79 days after New Coke's introduction. The new product was marketed and sold as "Coke" (later renamed "Coke II" in 1990), while the original formula was named "Coca-Cola Classic," and for a short time, it was referred to by the public as Old Coke. Some consumers were skeptical that the reintroduced formula was truly the same as the original.
Keough remarked at a press conference, "There is a twist to this story which will please every humanist and will probably keep Harvard professors puzzled for years." Six months after New Coke's introduction, Coke's sales had increased at twice the rate of rival Pepsi.
The Coca-Cola Company spent considerable time analyzing their misjudgment, concluding that they had underestimated the public's attachment to the original formula. The company had, as Keough suggested, failed to consider the public's attachment to the idea of what Coke's old formula represented. This narrative benefited Coke, positioning it as a brand embodying values distinct from Pepsi.
Bill Cosby ended his advertising for Coca-Cola, claiming that his commercials praising the new formula had damaged his credibility. No one at Coca-Cola was fired for the change. When Goizueta died in 1997, the company's share price was well above what it was when he had taken over 16 years earlier, and its position as market leader was even more firmly established.
Goizueta maintained that he never regretted the decision to change Coca-Cola. New Coke continued to perform well in taste tests. In 1987, The Wall Street Journal surveyed 100 randomly selected cola drinkers, the majority of whom preferred Pepsi, with Classic Coke accounting for the remainder except for two New Coke loyalists.
Marketing in the Wake of the New Coke Debacle
The reintroduction of original Coca-Cola boosted Coke's sales and restored goodwill with many customers and bottlers. Phone calls and letters to the company were now filled with joy and gratitude. However, the marketing department faced the challenge of marketing two Coca-Colas, a situation previously unimaginable.
Coca-Cola Classic was marketed with a "Red, White and You" campaign, emphasizing the American values that its supporters had highlighted. The company struggled to market what was now simply "Coke," as slogans like "The Best Just Got Better" were no longer applicable.
In early 1986, Coke's marketing team revisited their original motive for changing the formula: appealing to the youth market that preferred Pepsi. Max Headroom, a computer-generated media personality, replaced Cosby as the spokesman for Coke's new "Catch the wave" campaign. The campaign targeted a youth audience through appearances on MTV and Cinemax.
The campaign launched with a television commercial produced by McCann Erickson New York, featuring Max saying, "C-c-c-catch the wave!" and referring to his fellow "Cokeologists." In a response to Pepsi's advertising, one commercial showed Headroom "interviewing" a Pepsi can, asking how it felt about more drinkers preferring Coke, and then cutting to condensation forming on the can.
The campaign was a huge success. A Newsweek article stated that "Max's 'C-C-Catch the wave' spots for Coke…may be the most cleverly structured pitches ever aimed at the under-30 viewer." Coke's SVP of marketing, John Reid, claimed that "76 percent of teenagers had heard of Max after our first flight of ads." Surveys showed that over three-quarters of the target market were aware of the ads within two days.
The Evolution of Diet Coke and the Changing Beverage Landscape
By 1990, the Coca-Cola Company was ready to introduce a radically different marketing campaign for New Coke under the name Coke II, but in only one market - Spokane, Washington, a Pepsi stronghold. The company and bottler invested heavily in the launch of Coke II, including offering 16 oz. cans with 4 oz. free, new "We've Got Your Number" radio and TV ads, and on-air giveaways on KZZU. The new ads tried to explain the taste of Coke II as having "real cola taste plus the sweetness of Pepsi, two things that add up to smooth, refreshing Coke II." Pepsi responded with legal challenges to the taste claim and lowered its in-store prices.
As sales of Diet Coke stagnated, Coca-Cola announced a redesign of its zero-calorie soft-drink can to be more slender and colorful, along with the launch of new flavors such as “Feisty Cherry,” “Twisted Mango,” and “Zesty Blood Orange.” Despite the initial claim that "You don’t mess with a good thing," Coca-Cola is constantly innovating.
The first version of Diet Coke debuted in 1982, followed by a caffeine-free version in 1983 and a cherry-flavored variety in 1986. This century, several more flavors have joined the family, including lemon, vanilla, lime, black cherry, and raspberry.
At the peak of soft-drink consumption in the mid-2000s, America consumed 53 gallons of soda per person each year. However, soda's popularity has since declined. Diet Coke may still be the second-most popular soda in the country, but soft-drink consumption has declined every year this decade. In its last annual report, Coca-Cola said that the volume of Diet Coke sold in North America declined by 5 percent-more than any other Coca-Cola beverage brand identified in the report.
The Decline of Diet Coke: Shifting Consumer Preferences
The decline in Diet Coke's popularity can be attributed to a growing consumer focus on health, which has dented soda's dominion. Beyond concerns about artificial sweeteners, research has linked daily diet soda consumption to a higher risk of strokes and other vascular events. While Diet Coke's new can designs are tall and slender, reflecting the body type a diet-beverage drinker seeks, many consumers simply don’t trust any kind of soda to be a part of a healthy diet.
The American public has undergone a profound change in its taste for liquids, in three major ways. First, bottled water has transformed from an ecologically dubious ordinary consumer product to an ecologically dubious economic juggernaut. Since 2000, bottled-water consumption has tripled. In 2016, the volume of it consumed surpassed that of soda in the United States for the first time ever. Related categories such as flavored water and flavored seltzer water have grown even faster. Sales of so-called “value-added” water, like Coca-Cola’s vitaminwater, have grown by nearly 3,000 percent since the turn of the century. The flavored-seltzer market is growing by more than 10 percent annually.
Second, whereas many Americans once turned to Diet Coke to power their afternoons, these days the market for energy-giving beverages is crowded. The coffee industry is on track to surpass domestic soda sales sometime in the early 2020s. Energy-drink sales have grown by more than 5,000 percent this century.
Finally, while Diet Coke is still one of the most popular sodas in the country, it’s losing market share to more-flavorful beverages. Many drinkers prefer the richer taste of classic Coca-Cola, which is still growing worldwide. Research has shown that black cans and avoiding the word diet in beverage titles lures male consumers; indeed, the black-bottled Coca-Cola Zero Sugar is growing at Diet Coke’s expense.
The Future of Diet Coke: Adapting to Changing Tastes
Slender bottles with streaks of color probably won’t arrest Diet Coke’s demise. As the Harvard business professor and author Clayton Christensen has written, products and customers have certain “jobs” that need to be done. One could argue that, in the last decade, all of the jobs of Diet Coke are being outsourced to superior beverages. The role of hydration has been outsourced to bottled water and sports drinks, like Gatorade. Getting a jolt of energy has been outsourced to coffee and energy drinks, like 5-Hour Energy. And the satisfaction of a cold liquid fizzing on one’s tongue? That’s been outsourced to the trendy crop of flavored seltzers, like LaCroix.
In the end, it probably doesn’t matter what the Diet Coke can looks like. Young people know what’s inside the can. Ozarks Coca-Cola/Dr Pepper Bottling Company is offering BodyArmor Premium Sports Drink in area retail stores. These enhanced beverage options for athletes feature all-natural flavors and sweeteners, plus have no colors from artificial sources. With a growing segment of the population is focused on health, diet, and exercise. Ozarks Coca-Cola/Dr Pepper is pleased to offer a premium sports drink for athletes of all levels.
Your Diet Coke still has the same great recipe and flavor it’s always had. We’ve updated our packaging to a sleeker, slimmer can that holds all the same great 12 oz. Reflecting the changing tastes of a new generation, we’ve kicked up the intensity with new flavors. These individual serving packages have a distinct imprint on recyclable aluminum, and carry more Coke flavor per ounce. It’s a unique way to enjoy the great taste of your new favorite no-calorie refreshment.
Ozarks Coca-Cola Bottling Company also announced the arrival of Coca-Cola Zero Sugar. Playing on the popular taste of Coke Zero, our new formula enhances that great flavor that Coke drinkers crave, while keeping calories and sugar right where they want them - at Zero. Our revamped recipe supports the Coca-Cola company’s continued efforts to boost promotion of no- and low-sugar refreshment options to help people that want to reduce their consumption of added sugars.
Coca-Cola Merchandise: From Classic Logos to Modern Designs
The Coca-Cola brand extends far beyond beverages, encompassing a wide range of merchandise that reflects its iconic status and evolving identity. From classic logos to modern designs, Coca-Cola merchandise offers something for everyone, appealing to both nostalgic fans and contemporary consumers.
Apparel featuring the Coca-Cola brand includes items such as the Coca-Cola 86 Women's Jersey, Coca-Cola Classic Women's Jersey, Diet Coke Bow Cropped Tee, Coca-Cola Santa Wonderland Unisex Sweatshirt, and Coca-Cola Relaxed Santa With Deer Unisex Hoodie. These items showcase the brand's versatility, blending classic imagery with modern styles.
Holiday-themed apparel includes the Unisex Santa Relaxing Holiday Red Hoodie, Unisex Santa “Thirst Knows No Season” Tee, Delicious & Refreshing Red Unisex Tee, Coca-Cola Santa The Sparkling Holidays Unisex Tee, Coca-Cola Taste The Feeling Black Unisex Tee, and Coca-Cola Semi Truck With Santa Unisex Tee. These festive designs capture the spirit of the season while celebrating the iconic Coca-Cola brand.
Everyday wear options include the Coca-Cola Kelly Green Script Tee, Diet Coke Social Club Unisex Tee, Diet Coke Girlie Crop Tank, Diet Coke Ghost Unisex Hoodie, Diet Coke Ghost Women's Tee, Diet Coke Chrome Sweatshirt, Diet Coke Ghost Unisex Tee, and Diet Coke Love High Waisted Tee. These items cater to a wide range of tastes, from classic logos to modern, playful designs.
Collaborations with artists and designers have resulted in unique and collectible merchandise, such as the Fanta & Kidrobot 3" Fanta Grape Resin Dunny Art Figure, Fanta® & Kidrobot 3" Fanta Orange Resin Dunny Art Figure, and Sprite® & Kidrobot 8" Resin Dunny Art Figure - Limited Edition of 1000. These limited-edition pieces appeal to art enthusiasts and collectors alike.
Limited-edition bottles featuring characters from Star Wars, such as the Coca-Cola Zero Sugar X Star Wars BB8 Collectible Bottle and Coca-Cola Original Taste X Star Wars K2SO Collectible Bottle, showcase the brand's ability to stay relevant and engage with popular culture.
Collaborations with streetwear brands like CSC have produced items such as the Coca-Cola CSC x Coke Soccer Jersey Unisex, Coca-Cola CSC x Coke Graffiti Unisex Jeans, Coca-Cola x CSC Denim Short Unisex, Coca-Cola CSC x Coke Angel Zip Unisex Hoodie, Coca-Cola CSC x Coke Its The Real Thing Unisex Tee, and Coca-Cola CSC x Coke Angel Ringer Unisex Tee. These items blend the iconic Coca-Cola brand with contemporary streetwear aesthetics.
Other merchandise includes items such as the Share a Coke Junior Women's Crop Tank, Coca-Cola Polar Bear Collage Plush Blanket, Coca-Cola Polar Bear Tervis Tumbler 20 oz, Coca-Cola Bottle X Spirit Jersey Unisex Tee, Diet Coke X Spirit Jersey Unisex Tee, Coca-Cola Funko POP! 90s Flocked Polar Bear 3.5", Coca-Cola X Converse Chuck Taylors, Coke Polar Bear Silicone Keychain, and Coca-Cola Polar Bear Emoji Ice Cube Tray. These diverse items cater to a wide range of interests and preferences.
Collectible glassware and accessories, such as the Cherry Coke Plush Blanket, Cherry Coke Glass Bottle w/Lid 19 oz, Coca-Cola Polar Bear Shades Button, Diet Coke & Kidrobot 8" Resin Dunny Art Figure - Limited Edition of 1000, Coca-Cola Glass Genuine w/ Lid & Straw 15 oz, Coca-Cola Polar Bear Wristlet, Coca-Cola Glass Jar w/Lid Vintage 20 oz, Cherry Coke Cap Necklace, Cherry Coke Bottle Cap Ball Bead Necklace in Gold, Coca-Cola Polar Bear Stationery Kit, Fanta X Kidrobot 3" Resin Dunny Art Figure 4-Pack, and Coca-Cola Glass Bowl Vintage 6", showcase the brand's enduring appeal and collectible nature.
Additional merchandise includes items such as the Cherry Coke Cap Bracelet, Cherry Coke Bottle Cap 2-Row Ball Bead Stretch Bracelet in Gold, Coca-Cola Funko Pop! Bottlecap Plush - 8", Coca-Cola Polar Bear Surfer Sipper 16 oz, Cherry Coke Icons Charm Bracelet, Coca-Cola Polar Bears Silicone Bottle Opener, Coca-Cola Polar Bear Profile 2pk Slipper Socks, Cherry Coke Bottle Lip Balm, Coca-Cola x Star Wars Vader Hoodie, Coca-Cola Polar Bear Scarf 2pk Slipper Socks, Coca-Cola x Star Wars Yoda Fleece, Coca-Cola Polar Bear 5pk Shoeliner Socks, Cherry Coke Can Coinpurse, Coca-Cola 169 oz. Glass Jar w/Lid, Coca-Cola Sparkling Holiday Unisex Tee, Coca-Cola 169 oz. Beverage Dispenser w/spigot, Coca-Cola Santa Unisex Tee, Coca-Cola China Script Baseball Cap, Coca-Cola Plush Polar Bear Mixtape 6', and Coca-Cola x Star Wars Darth Maul Tee. These diverse items reflect the brand's ability to adapt to changing trends and consumer preferences.
Personalized options, such as the Personalized 12 fl oz. Can of Coca-Cola and Share a Coke Personalized 8 fl oz Glass Bottle of Coca-Cola, allow consumers to create unique and memorable items.
International logo merchandise, such as the Coca-Cola International Logo Unisex Hoodie, celebrates the brand's global presence and appeal.