The tale of "New Coke" is a legendary marketing blunder, a story of consumer attachment, corporate misjudgment, and the surprising power of nostalgia. Simultaneously, the story of Mildred, a black bear with a penchant for orange soda, offers a heartwarming glimpse into the unexpected bonds between humans and animals. These seemingly disparate narratives intertwine to reveal fascinating insights into consumer behavior, brand identity, and the ever-evolving landscape of American culture.
The Rise and Fall of New Coke
In the mid-1980s, The Coca-Cola Company faced a challenge. After World War II, Coca-Cola held a dominant 60% of the market share for cola. By 1983, that number had declined to under 24 percent, largely because of competition from Pepsi-Cola. Pepsi-Cola had been gaining ground, particularly among younger drinkers, and diet soft drinks were becoming increasingly popular as baby boomers aged and became more health-conscious. Blind taste tests indicated that consumers often preferred Pepsi's sweeter flavor. Coca-Cola's senior executives commissioned a secret project headed by marketing vice president Sergio Zyman and Coca-Cola USA president Brian Dyson to create a new flavor for Coke. The company sought to revitalize its flagship product and recapture market share.
Driven by market research and taste tests, Coca-Cola executives decided to reformulate the drink's recipe for the first time in 94 years. The sweeter cola overwhelmingly beat both regular Coke and Pepsi in taste tests, surveys, and focus groups. The southeastern United States, one of Coca-Cola's strongest and most reliable markets, narrowly preferred the new flavor; this preference widened once the testers revealed the new taste was also a Coca-Cola product. Asked if they would buy and drink the product if it were Coca-Cola, most testers said they would, although it would take a while for them to get used to it. About 10-12 percent of testers felt angry and alienated at the thought, and said they might stop drinking Coke. The surveys, which were given more significance by standard marketing procedures of the era, were less negative than the taste tests and were key in convincing management to change the formula in 1985, to coincide with the drink's centenary. However, the groups had provided a clue as to how the change would play out in the public, a finding the company downplayed. Management rejected an idea to make and sell the new flavor as a separate variety of Coca-Cola. The company's bottlers had already been complaining about absorbing other additions into the product line following the introduction of Diet Coke 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 variety of Coke in competition with the main variety could also have cannibalized Coke's sales and increased the proportion of Pepsi drinkers relative to Coke drinkers.
On April 23, 1985, "New Coke" was introduced to the world at a press conference in New York City. Coca-Cola's CEO, Roberto Goizueta, described the new flavor as "bolder," "rounder," and "more harmonious," defending the change by asserting that the drink's secret formula was not sacrosanct. Production of the original formulation ended later that week. In many areas, New Coke was initially sold in original Coke packaging; bottlers used up remaining cans, cartons and labels before new packaging became widely available. 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. Coca-Cola introduced the new formula with marketing pushes in New York City, where workers renovating the Statue of Liberty for its centenary in 1986 were given free cans, and Washington, D.C., where thousands of cans were given away in Lafayette Park. As soon as New Coke was introduced, the new formula was already available at McDonald's and other drink fountains in the United States.
The Backlash and the Return of "Classic"
Despite initial positive reactions in some taste tests and markets, "New Coke" faced a massive wave of consumer backlash. Many felt that Coca-Cola had betrayed a cherished tradition. Many critics were from the southern US states, some of whom considered Coca-Cola part of their regional identity. The company received over 40,000 calls and letters expressing anger or disappointment, including one letter, delivered to Goizueta, addressed to "Chief Dodo, the Coca-Cola Company". Comedians and talk show hosts, including Johnny Carson and David Letterman, made regular jokes mocking the switch.
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The discontent culminated in boycotts and the formation of organizations like the "Old Cola Drinkers of America," led by Gay Mullins, a Seattle retiree. This organization eventually received over 60,000 phone calls. Mullins and his followers filed a class action lawsuit to try to force Coke to abandon its new formula.
Faced with mounting pressure and declining sales, Coca-Cola made a historic decision. On July 11, 1985, just 79 days after the introduction of "New Coke," the company announced the return of the original formula, rebranded as "Coca-Cola Classic". The new product continued to be marketed and sold as "Coke" (until 1990, when it was renamed "Coke II") while the original formula was named "Coca-Cola Classic", and for a short time it was referred to by the public as Old Coke.
Mildred: A Bear with a Taste for the Unconventional
In contrast to the corporate drama surrounding "New Coke," the story of Mildred the bear offers a more lighthearted perspective on taste and preference. Mildred, a black bear cub born in 1966, was raised at Atlanta's zoo. In 1968, she was sent to Grandfather Mountain in North Carolina, where Hugh Morton intended to release her into the wild. However, Mildred had become accustomed to human interaction and displayed a distinct preference for human company over her own species.
Mildred’s anthropomorphic tendencies were charming. She licked the cameraman’s boots. She said howdy to golfers at the nearby country club. She even swiped a snack or two. After a day of this behavior, Hugh put two and two together: The zoo accidentally sent him a bottle-fed baby - ya’ know, the bear from the beginning of this story who figured herself more of a suburban soul than a woodland brute.
Instead of releasing her, Morton built Mildred a comfortable habitat on Grandfather Mountain, where she became a beloved attraction. Mildred even joined Hugh for picnics of Fig Newtons and the aforementioned orange soda, drinking her fizzy beverages straight from the can. She slept there in the evenings but was allowed to roam freely during the day, posing for photos with visitors and putting on roadside shows.
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Mildred became a local legend. Even today, 30 years after passing away from natural causes in 1993, Mildred remains a local legend. “Mildred became the mascot for Grandfather Mountain,” John said. “A lot of people still come to the park and say that they remember her. I think that's a great testament to not only Mildred’s legacy but Mr. Morton’s as well.”
Lessons Learned and Enduring Legacies
The "New Coke" saga provides valuable lessons in marketing, branding, and consumer psychology. The company underestimated the emotional connection consumers had with the original Coca-Cola formula and failed to anticipate the intensity of the backlash. Despite the initial positive taste test results, the company did not fully account for factors such as nostalgia, regional identity, and the power of social influence.
In the short run, the reintroduction of original Coca-Cola saved Coke's sales figures and brought it back in the good graces of many customers and bottlers. Phone calls and letters to the company were as joyful and thankful as they had been angry and depressed.
The story also highlights the importance of understanding one's target audience. Coca-Cola's attempt to appeal to younger consumers by mimicking Pepsi's sweeter flavor alienated many loyal customers who valued the original taste of Coke. "New Coke" continued to do what it had originally been designed to do: win taste tests. In 1987, The Wall Street Journal surveyed 100 randomly selected cola drinkers, the majority of whom indicated a preference for Pepsi, with Classic Coke accounting for the remainder save two New Coke loyalists.
Mildred's story, while less dramatic, reinforces the idea that taste and preference are subjective and can be influenced by individual experiences and socialization. Her fondness for orange soda and human companionship challenged conventional notions of bear behavior and created a unique bond between her and the visitors of Grandfather Mountain.
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A Lasting Impact on Pop Culture
The "New Coke" debacle has become a cautionary tale in business schools and marketing circles, cited as an example of how not to launch a new product. The story continues to resonate in popular culture, often used as a point of reference for disastrous decisions or failed innovations.
In late May, Coca-Cola announced it would produce 50,000 cans of New Coke as part of a promotional campaign linked to the third season of Netflix’s Stranger Things, which takes place in 1985, the same year the fizzy reboot made its short-lived debut. “It’s delicious,” Lucas says, taking a long slurp. This is a fair representation of the prevailing literature on New Coke. For more than three decades, New Coke has been held up as the bad idea by which all other bad ideas are measured. Do a quick Google search for “the worst idea since New Coke” and you’ll find an encyclopedia of face-palms.
Mildred's legacy lives on through the memories of those who encountered her on Grandfather Mountain. Her story serves as a reminder of the unexpected connections that can form between humans and animals and the enduring appeal of nature's wonders.