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New Coke

New Coke, renamed Coke II in 1990, was the sweeter drink introduced in 1985 by The Coca-Cola Company to replace its flagship soda, Coca-Cola. Public reaction was devastating, and the new cola quickly entered the pantheon of major marketing flops.

The original drink's market share had been shrinking for decades, from 60 percent just after World War II to under 24 percent in 1983. In the company's search for a remedy, their product testers determined that many people preferred the sweeter taste of Pepsi. Executives decided to introduce a new version, featuring the formula of Diet Coke sweetened with high fructose corn syrup instead of aspartame. To preserve secrecy during pre-marketing taste tests, Coca-Cola marketers never asked the focus groups, "How about if this product replaced Coke?" New Coke was introduced on April 23, 1985, with the slogan "The Best Just Got Better." Production of the original formulation ended that same week.

"The Best Just Got Better... Coke is it!" - New Coke
"The Best Just Got Better... Coke is it!" - New Coke advertisement

It was a marketing and public relations debacle. The public was unhappy with the new taste, and even more unhappy that they were no longer able to obtain the original product. Humbled, Coca-Cola executives announced the return of the classic cola on July 11, less than three months after New Coke's introduction.

"There is a twist to this story which will please every humanist and will probably keep Harvard professors puzzled for years," said Donald Keough , president and chief operating officer, at a press conference. "The simple fact is that all the time and money and skill poured into consumer research on the new Coca-Cola could not measure or reveal the deep and abiding emotional attachment to original Coca-Cola felt by so many people."

The reintroduction of the original formula, now renamed Classic Coke/Coca Cola Classic, propelled demand, helping to save Coca-Cola's market lead over Pepsi. Some believe this was the deliberate purpose of introducing New Coke.

Others believe New Coke was intended to distract consumers from the switch from cane sugar to corn syrup—even though Coca-Cola contained corn syrup before New Coke was introduced.

Still others contend that the beverage's natural flavorings include coca plant extracts similar to cocaine, and that the reformulation removed these to placate the Drug Enforcement Administration, which was trying to eradicate the coca plant worldwide.

In 1985, New Coke was sold only in North America, while the original formula continued to be sold in the rest of the world (although had the new version been a success it would presumably have been introduced worldwide). But New Coke was eventually returned to the company's product portfolio; it was test-marketed under the name Coke II in 1990 and officially renamed Coke II in 1992.

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10-26-2009 08:16:03
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