New Coke
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What was New Coke?
In April 1985, the Coca-Cola Company introduced New Coke, a reformulated version of its flagship drink, to revitalize the brand and gain market share. This sweeter product was the result of taste test research done by Coke executives who were worried about challenges from Pepsi.
The announcement of New Coke sparked outrage, and the decision to discontinue the prior version was considered a major marketing blunder. After 77 days, the previous version of Coke was brought back as Coca-Cola Classic. New Coke was renamed Coke II in 1992 but was discontinued in 2002 due to miniscule market share.
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Why did Coca-Cola introduce New Coke?
In 1985, the Coca-Cola Company introduced New Coke to replace its flagship drink, aiming to revitalize the brand and increase its market share amidst strong competition from Pepsi. Pepsi's "Pepsi Challenge" ad campaign, where consumers preferred Pepsi over Coke in blind taste tests, worried Coke executives. This led to the reformulation of Coke, creating a sweeter product. After favorable testing, New Coke was launched in April 1985. Despite the initial setback and consumer uproar, the company indirectly strengthened its position in the beverage industry.
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How was the taste of New Coke different from the original Coca-Cola?
New Coke, introduced in 1985, was a sweeter version of the original Coca-Cola, intended to revitalize the brand New Coke. This reformulation occurred partly because PepsiCo was gaining market share with its "Pepsi Challenge" ad campaign, where participants in blind taste tests favored Pepsi over Coke. Although the reformulated product scored favorably in testing, its launch was considered a "national disaster". After 77 days, the original Coke was brought back as "Coca-Cola Classic". New Coke was renamed Coke II in 1992 and discontinued in 2002.
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How did people react when New Coke replaced the original formula?
When New Coke replaced the original Coca-Cola formula on April 23, 1985, the reaction was overwhelmingly negative. The announcement was considered a "national disaster".
Ads for New Coke were booed, and people hoarded the original formula, selling it at high prices. Some even publicly dumped New Coke into sewers. After 77 days, the company brought back the original formula as "Coca-Cola Classic". Despite its poor reception, New Coke was sold for several years, renamed Coke II in 1992, but was discontinued in 2002 due to minuscule market share.
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What decision did Coca-Cola make after customers reacted to New Coke?
After 77 days of public outcry, the Coca-Cola Company decided to bring back the original Coke formula, renaming it "Coca-Cola Classic" on July 11, 1985. This decision followed the unsuccessful introduction of New Coke in April 1985, a reformulated, sweeter version of the flagship drink intended to revitalize the brand. The return of the original formula came after consumer reaction included public dumping of New Coke and Prohibition-style hoarding of original Coke. Despite losing millions in research and advertising costs, the company indirectly strengthened its market position. New Coke was sold for a number of years, was renamed Coke II in 1992, and was discontinued in 2002.
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How did the story of New Coke impact the history and marketing of Coca-Cola?
In 1985, the Coca-Cola Company reformulated its flagship drink to revitalize the brand, creating a sweeter product known as New Coke. This decision, however, was met with public outrage, with some considering it a "national disaster." After 77 days, the company brought back the original formula as "Coca-Cola Classic." Despite losing millions in research and advertising, Coca-Cola gained significant free advertising. The incident reinforced the importance of Coca-Cola's heritage, teaching them that they are caretakers who "can’t change the taste of their flagship brand". New Coke was renamed Coke II in 1992 but was discontinued in 2002 due to its minuscule market share.
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New Coke, reformulated soft drink that the Coca-Cola Company introduced on April 23, 1985, to replace its flagship drink in the hope of revitalizing the brand and gaining market share in the beverage industry. The announcement sparked a furour, and within a few days the decision to discontinue the prior version of Coke was called “the biggest marketing blunder of all time.”
The drink Coca-Cola (later called Coke) originated in 1886, and in the ensuing years it became part of American culture. In the 1930s William Allen White, a Pulitzer Prize-winning Kansas newspaperman, described this carbonated beverage as the “sublimated essence of all America stands for—a decent thing, honestly made,” and nobody blinked when the Coke company hung out a sign for the Apollo 11 astronauts reading, “Welcome back to earth, home of Coca-Cola.”
However, despite Coke’s seemingly secure place in American lives, by the mid-1980s it was facing a strong challenge from Pepsi. That beverage had begun a popular ad campaign called the “Pepsi Challenge,” in which the majority of participants in blind taste tests chose Pepsi over Coke. Worried Coke executives decided to reformulate their drink, creating a sweeter product. (Perhaps the most notable previous change to Coke had occurred about 1903, when cocaine was removed as an ingredient.) After much testing—in which the reformulated product scored favourably—it was launched in April 1985 and became known as New Coke, though its official name was simply Coke; “new” appeared on bottles and cans.
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On the street it was considered a national disaster. New Coke ads onscreen at the Houston Astrodome were booed, and original Coke was hoarded or sold at Prohibition-style prices. In addition, New Coke was dumped publicly into the sewers in Seattle. After 77 days the previous version of Coke was brought back as “Coca-Cola Classic” on July 11, 1985. The Coca-Cola Company lost millions in research and advertising costs but gained three times as much in free advertising. Indirectly, New Coke strengthened the company’s position atop the commercial “beverage tree,” which conspiracy theorists say had been the plan all along. CEO Roberto Goizueta denied the charge, claiming “We are not that smart and we’re not that dumb.”
Perhaps the best verdict on the New Coke affair came from Pepsi-Cola USA’s CEO Roger Enrico, who thought Coca-Cola had learned a valuable lesson: “I think, by the end of their nightmare, they figured out who they really are. Caretakers. They can’t change the taste of their flagship brand. They can’t change its imagery. All they can do is defend the heritage they nearly abandoned in 1985.”
Despite its poor reception, New Coke continued to be sold for a number of years. In 1992 it was renamed Coke II. However, its market share was miniscule, and the beverage was discontinued in 2002.