New Coke
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New Coke was the unofficial name of a reformulation of the soft drink
Coca-Cola Coca-Cola, or Coke, is a carbonated soft drink manufactured by the Coca-Cola Company. Originally marketed as a temperance drink and intended as a patent medicine, it was invented in the late 19th century by John Stith Pemberton in Atlant ...
, introduced by
The Coca-Cola Company The Coca-Cola Company is an American multinational beverage corporation founded in 1892, best known as the producer of Coca-Cola. The Coca-Cola Company also manufactures, sells, and markets other non-alcoholic beverage concentrates and syrup ...
in April 1985. It was renamed Coke II in 1990 and discontinued in July 2002. By 1985, Coca-Cola had been losing market share to diet soft drinks and non-cola beverages for several years.
Blind taste test In marketing, a blind taste test is often used as a tool for companies to compare their brand to another brand. For example, the Pepsi Challenge is a famous taste test that has been run by Pepsi since 1975. Additionally, taste tests are sometime ...
s suggested that consumers preferred the sweeter taste of the competing product
Pepsi Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961. History Pepsi wa ...
, and so the Coca-Cola recipe was reformulated. The American public reacted negatively, and New Coke was considered a major failure. The company reintroduced the original Coke formula within three months, rebranded "Coca-Cola Classic", resulting in a significant sales boost. This led to speculation that the New Coke formula was a ploy to stimulate sales of the original Coca-Cola, which the company has denied. The story of New Coke remains influential as a
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against tampering with an established successful brand.


Background

After
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposing ...
, Coca-Cola held 60 percent of the market share for
cola Cola is a carbonated soft drink flavored with vanilla, cinnamon, citrus oils and other flavorings. Cola became popular worldwide after the American pharmacist John Stith Pemberton invented Coca-Cola, a trademarked brand, in 1886, which was imi ...
. By 1983, it had declined to under 24 percent, largely because of competition from
Pepsi Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961. History Pepsi wa ...
. Pepsi had begun to outsell Coke in supermarkets; Coke maintained its lead only through venues such as soda vending machines and fast food restaurants. Market analysts believed
baby boomer Baby boomers, often shortened to boomers, are the Western demographic cohort following the Silent Generation and preceding Generation X. The generation is often defined as people born from 1946 to 1964, during the mid-20th century baby boom. ...
s were more likely to purchase diet drinks as they aged and remained health- and weight-conscious. Growth in the full-calorie segment would come from younger drinkers, who at that time favored Pepsi by increasing margins. Meanwhile, the overall market for colas steadily declined in the early 1980s, as consumers increasingly purchased diet and non-cola soft drinks, many of which sold by Coca-Cola; this further eroded Coca-Cola's market share. When Roberto Goizueta became Coca-Cola CEO in 1980, he told employees there would be no "sacred cows" in how the company did business, including how it formulated its drinks.


Development

Coca-Cola's senior executives commissioned a secret project headed by marketing vice president Sergio Zyman and Coca-Cola USA president
Brian Dyson Brian G. Dyson (born September, 1935) was the chief executive officer (CEO) of Coca-Cola Enterprises Inc. from 1986 to 1991. Brian is also known for his “five balls” speech. Career He joined Coca-Cola Co. in Venezuela in 1959 and worked f ...
to create a new flavor for Coke. This project was named "Project Kansas", from a photo of Kansas journalist
William Allen White William Allen White (February 10, 1868 – January 29, 1944) was an American newspaper editor, politician, author, and leader of the Progressive movement. Between 1896 and his death, White became a spokesman for middle America. At a 193 ...
drinking a Coke; the image had been used extensively in Coca-Cola advertising and hung on several executives' walls. The sweeter cola overwhelmingly beat both regular Coke and Pepsi in taste tests,
survey Survey may refer to: Statistics and human research * Statistical survey, a method for collecting quantitative information about items in a population * Survey (human research), including opinion polls Spatial measurement * Surveying, the techniq ...
s, and
focus group A focus group is a group interview involving a small number of demographically similar people or participants who have other common traits/experiences. Their reactions to specific researcher/evaluator-posed questions are studied. Focus groups are ...
s. The
southeastern United States The Southeastern United States, also referred to as the American Southeast or simply the Southeast, is a geographical region of the United States. It is located broadly on the eastern portion of the southern United States and the southern por ...
, 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. One
bottling company A bottling company is a commercial enterprise whose output is the bottling of beverages for distribution. Many bottling companies are franchisees of corporations such as Coca-Cola and PepsiCo who distribute the beverage in a specific geograph ...
threatened to sue the company if it did not put the drink on the market. Asked if they would buy and drink the product if it were Coca-Cola, most testers said they would, although said it would take some getting used to. About 10–12 percent of testers felt angry and alienated at the thought, and said they might stop drinking Coke. Their presence in focus groups tended to negatively skew results as they exerted indirect
peer pressure Peer pressure is the direct or indirect influence on peers, i.e., members of social groups with similar interests, experiences, or social statuses. Members of a peer group are more likely to influence a person's beliefs, values, and behavior. A g ...
on other participants. 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 were already complaining about absorbing other recent additions into the product line since 1982, after the introduction of
Diet Coke Diet Coke (also branded as Coca-Cola Light, Coca-Cola Diet or Coca-Cola Light Taste) is a sugar-free and low-calorie soft drink produced and distributed by the Coca-Cola Company. It contains artificial sweeteners instead of sugar. Unveiled on ...
;
Cherry Coke Coca-Cola Cherry (originally marketed and stil commonly referred to as Cherry Coke) is a cherry-flavored version of Coca-Cola. It is produced and distributed by The Coca-Cola Company and its bottlers in the United States and some international m ...
was launched nationally nearly concurrently with New Coke during 1985. Many bottling companies had sued over the company's
syrup In cooking, a syrup (less commonly sirup; from ar, شراب; , beverage, wine and la, sirupus) is a condiment that is a thick, viscous liquid consisting primarily of a solution of sugar in water, containing a large amount of dissolved sugars ...
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. Early in his career with Coca-Cola, Goizueta had been in charge of the Bahamas subsidiary. He had improved sales by tweaking the drink's flavor slightly, and so was receptive to the idea that changing the flavor of Coke could boost profits. He believed it would be "New Coke or no Coke", and that the change must take place openly. He insisted that the containers carry the "New!" label, which gave the drink its popular name. Goizueta also made a visit to his mentor and predecessor as the company's chief executive, the ailing Robert W. Woodruff, who had built Coke into an international brand following World War II. Goizueta claimed he had secured Woodruff's blessing for the reformulation, but many of Goizueta's closest friends within the company doubted that Woodruff understood Goizueta's intentions. Woodruff died in March 1985, a month before New Coke was launched.


Launch

New Coke was introduced on April 23, 1985. Production of the original formulation ended later that week. In many areas, New Coke was initially introduced in "old" Coke packaging; bottlers used up remaining cans, cartons and labels before new packaging was widely available. Old cans containing New Coke were identified by their gold colored tops, while glass and plastic bottles had red caps instead of silver and white, respectively. Bright yellow stickers indicating the change were placed on the cartons of multi-packs. The press conference at New York City's
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to introduce the new formula did not go well. Reporters had already been fed questions by Pepsi, which was worried that New Coke would erase its gains. Goizueta, Coca-Cola's CEO, described the new flavor as "bolder", "rounder", and "more harmonious", and defended the change by saying that the drink's secret formula was not sacrosanct and inviolable. As far back as 1935, Coca-Cola sought
kosher certification A hechsher (; he, הֶכְשֵׁר "prior approval"; plural: ''hechsherim'') is a rabbinical product certification, qualifying items (usually foods) that conform to the requirements of halakha. Forms A hechsher may be a printed and signed certif ...
from Atlanta rabbi
Tobias Geffen Tobias Geffen ( he, טוביה גפן; August 1, 1870 – February 10, 1970) was an American Orthodox rabbi. He served as the leader of Congregation Shearith Israel in Atlanta, Georgia, from 1910 to 1970. Geffen is widely known for his 1935 deci ...
, and made two changes to the formula so the drink could be considered kosher (as well as
halal ''Halal'' (; ar, حلال, ) is an Arabic word that translates to "permissible" in English. In the Quran, the word ''halal'' is contrasted with '' haram'' (forbidden). This binary opposition was elaborated into a more complex classification k ...
and vegetarian). Goizueta also refused to admit that taste tests had led the change, calling it "one of the easiest decisions we've ever made". A reporter asked whether Diet Coke would also be reformulated "assuming ew Cokeis a success," to which Goizueta curtly replied, "No. And I didn't assume that this is a success. This ''is'' a success." The emphasis on the new formula's sweeter taste also ran contrary to previous Coke advertising, in which spokesman
Bill Cosby William Henry Cosby Jr. ( ; born July 12, 1937) is an American stand-up comedian, actor, and media personality. He made significant contributions to American and African-American culture, and is well known in the United States for his eccentric ...
had touted the original Coke's less-sweet taste as a reason to prefer it over the sweeter taste of Pepsi. The company's stock went up after the announcement, and market research showed 80 percent of the American public was aware of the change within days.Alt URL
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Initial success

Coca-Cola introduced the new formula with marketing pushes in New York, where workers renovating the Statue of Liberty for its 1986 centenary were given 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 available at
McDonald's McDonald's Corporation is an American multinational fast food chain, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hambur ...
and other drink fountains in the United States. Sales figures from those cities, and other areas where it had been introduced such as Miami and Detroit, showed a reaction that went as the market research had predicted. In fact, Coke's sales were up 8 percent over the same period as the year before. Most Coke drinkers resumed buying the new Coke at much the same level as they had the old one. Surveys indicated that the majority of regular Coke drinkers liked the new flavoring. Three quarters of the respondents said they would buy New Coke again. The big test, however, remained in the South, where Coke had first been tasted and bottled.


Backlash

Though New Coke was accepted by many Coca-Cola drinkers, many more resented the change, as had happened in the focus groups. Many critics were from the southern US states, some of whom considered Coca-Cola part of their regional identity. Some viewed the change through the prism of the
Civil War A civil war or intrastate war is a war between organized groups within the same state (or country). The aim of one side may be to take control of the country or a region, to achieve independence for a region, or to change government policies ...
as a surrender to the "
Yankees The New York Yankees are an American professional baseball team based in the New York City borough of the Bronx. The Yankees compete in Major League Baseball (MLB) as a member club of the American League (AL) East division. They are one of ...
" as PepsiCo, the manufacturer of Pepsi, is based in Purchase, New York. In a ''
Chicago Tribune The ''Chicago Tribune'' is a daily newspaper based in Chicago, Illinois, United States, owned by Tribune Publishing. Founded in 1847, and formerly self-styled as the "World's Greatest Newspaper" (a slogan for which WGN radio and television a ...
'' story about reaction in the South, a professor at the
University of Mississippi The University of Mississippi ( byname Ole Miss) is a public research university that is located adjacent to Oxford, Mississippi, and has a medical center in Jackson. It is Mississippi's oldest public university and its largest by enrollment ...
observed that "changing Coca-Cola is an intrusion on tradition" and thus would not be well received in that region. An
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resident wondered why the company had introduced the new flavor in New York; elsewhere in the state an ''
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'' columnist, noting Goizueta's Cuban origins, insinuated that the flavor change was a Communist plot. The '' Atlanta Journal-Constitution'' found a majority of patrons at The Varsity, a popular local restaurant in that city, favored the old formula. "Why didn't they test anybody here?" the co-owner asked. 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". Another letter asked for his autograph, as the signature of "one of the dumbest executives in American business history" would likely become valuable in the future. The company hotline, 1-800-GET-COKE, received over 1,500 calls a day compared to around 400 before the change. A psychiatrist whom Coke had hired to listen in on calls told executives that some people sounded as if they were discussing the death of a family member. There were critics from outside the region. ''Tribune'' columnist
Bob Greene Robert Bernard Greene Jr. (born March 10, 1947) is an American journalist and author. He worked for 24 years for the ''Chicago Tribune'' newspaper, where he was a columnist. Greene has written books on subjects including Michael Jordan, Alice C ...
wrote some widely reprinted pieces ridiculing the new flavor and expressing anger at Coke's executives for having changed it. Comedians and talk show hosts, including Johnny Carson and David Letterman, made regular jokes mocking the switch. Ads for New Coke were booed heavily when they appeared on the
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at the
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. Even Fidel Castro, a longtime Coca-Cola drinker, contributed to the backlash, calling New Coke a sign of American capitalist decadence. Goizueta's father expressed similar misgivings to his son, who later recalled that it was the only time his father had agreed with Castro, whose rule he had fled Cuba to avoid. Gay Mullins, a
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looking to start a
public relations Public relations (PR) is the practice of managing and disseminating information from an individual or an organization (such as a business, government agency, or a nonprofit organization) to the public in order to influence their perception. ...
firm with $120,000 of borrowed money, formed the Old Cola Drinkers of America on May 28 to lobby Coca-Cola to either reintroduce the old formula or sell it to someone else. His organization eventually received over 60,000 phone calls. He also filed a
class action lawsuit A class action, also known as a class-action lawsuit, class suit, or representative action, is a type of lawsuit where one of the parties is a group of people who are represented collectively by a member or members of that group. The class actio ...
against the company (which was quickly dismissed by a judge who said he preferred the taste of Pepsi), while nevertheless expressing interest in securing the Coca-Cola Company as a client of his new firm should it reintroduce the old formula. In two informal blind taste tests, Mullins either failed to distinguish New Coke from old or expressed a preference for New Coke. Despite ongoing resistance in the South, New Coke continued to do well in the rest of the country. However, the executives were uncertain of how international markets would react. They met with international Coke bottlers in Monaco; to their surprise, the bottlers were not interested in selling New Coke. Zyman also heard doubts and skepticism from his relatives in Mexico, where New Coke was scheduled to be introduced later that summer, when he went there on vacation. Goizueta stated that Coca-Cola employees who liked New Coke felt unable to speak up due to peer pressure, as had happened in the focus groups. Donald Keough, the Coca-Cola president and chief operating officer at the time, reported overhearing someone say at his
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that they liked New Coke, but they would be "damned if I'll let Coca-Cola know that".


Response by PepsiCo

PepsiCo took advantage of the situation, running ads in which a first-time Pepsi drinker exclaimed, "Now I know why Coke did it!" Even amidst consumer anger and several Pepsi ads mocking Coca-Cola's debacle, Pepsi actually gained very few long-term converts over Coke's switch, despite a 14 percent sales increase over the same month the previous year, the largest sales growth in the company's history. Coca-Cola's director of corporate communications, Carlton Curtis, realized over time that consumers were more upset about the withdrawal of the old formula than the taste of the new one.
Roger Enrico Roger Anthony Enrico (November 11, 1944 – June 1, 2016) was an American businessman who is best known for his lengthy service as chief executive officer of PepsiCo. Early life Enrico was born on November 11, 1944, to Italian immigrants in the ...
, then director of PepsiCo's North American operations, declared a company-wide holiday and took out a full-page ad in ''
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid d ...
'' proclaiming that PepsiCo had won the long-running "
Cola Wars The cola wars are the long-time rivalry between cola producers The Coca-Cola Company and PepsiCo, who have engaged in mutually-targeted marketing campaigns for the direct competition between each company's product lines, especially their flag ...
". Since Coke officials were preoccupied over the weekend with preparations for the announcement, their PepsiCo counterparts had time to cultivate skepticism among reporters, sounding themes that would later come into play in the public discourse over the changed drink. After the announcement on April 23, PepsiCo gave its employees the day off saying, "By today's action, Coke has admitted that it's ''not'' the real thing."


Company dissatisfaction

Some Coca-Cola executives had quietly been arguing for a reintroduction of the old formula as early as May. By mid-June, when soft drink sales usually start to rise, the numbers showed that new Coke was leveling among consumers. Executives feared social peer pressure was now affecting their bottom line. Some consumers even began trying to obtain "old" Coke from overseas, where the new formula had not yet been introduced, as domestic stocks of the old drink were exhausted. Over the course of the month, Coca-Cola's chemists also quietly reduced the
acidity In computer science, ACID ( atomicity, consistency, isolation, durability) is a set of properties of database transactions intended to guarantee data validity despite errors, power failures, and other mishaps. In the context of databases, a ...
level of the new formula, hoping to assuage complaints about the flavor and allow its sweetness to be better perceived (advertisements pointing to this change were prepared, but never used). In addition to the noisier public protests, boycotts, and bottles being emptied into the streets of several cities, the company had more serious reasons to be concerned. Its bottlers, and not just the ones still suing the company over syrup pricing policies, were expressing concern. While they had given Goizueta a standing ovation when he announced the change at an April 22 bottlers' meeting at Atlanta's
Woodruff Arts Center Woodruff Arts Center is a visual and performing arts center located in Atlanta, Georgia. The center houses three not-for-profit arts divisions on one campus. Opened in 1968, the Woodruff Arts Center is home to the Alliance Theatre, the Atlant ...
, glad the company had finally taken some initiative in the face of PepsiCo's advances, they were less enthusiastic about the taste. Most of them saw great difficulty having to promote and sell a drink that had long been marketed as "The Real Thing", constant and unchanging, now that it had been changed. The 20 bottlers still suing Coca-Cola made much of the change in their legal arguments. Coca-Cola had argued in its defense when the suit was originally filed that the formula's uniqueness and difference from Diet Coke justified different pricing policies from the latter – but if the new formula was simply an HFCS-sweetened Diet Coke, Coca-Cola could not argue the formula was unique. Bottlers, particularly in the South, were also tired of facing personal opprobrium over the change. Many reported that some acquaintances and even friends and relatives had ostracized them, or had expressed displeasure in other emotionally hurtful ways. On June 23, several of the bottlers took these complaints to Coca-Cola executives in a private meeting. With the company now fearing boycotts not only from its consumers but its bottlers, talks about reintroducing the old formula moved from "if" to "when". Finally, the Coca-Cola board decided that enough was enough, and plans were set in motion to bring back the old Coke. Company president Donald Keough revealed years later, in the documentary ''The People vs. Coke'' (2002), that they realized this was the only right thing to do when they visited a small restaurant in Monaco and the owner proudly said they served "the real thing, it's a real Coke", offering them a chilled oz. glass bottle of original Coca-Cola.


Reversal

On the afternoon of July 11, 1985, Coca-Cola executives announced the return of the original formula, 79 days after New Coke's introduction.
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'
Peter Jennings Peter Charles Archibald Ewart Jennings (July 29, 1938August 7, 2005) was a Canadian-born American television journalist who served as the sole anchor of ''ABC World News Tonight'' from 1983 until his death from lung cancer in 2005. He dropped o ...
interrupted '' General Hospital'' with a special bulletin to share the news with viewers. On the floor of the
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,
David Pryor David Hampton Pryor (born August 29, 1934) is an American politician and former Democratic United States Representative and United States Senator from the State of Arkansas. Pryor also served as the 39th Governor of Arkansas from 1975 to 1979 a ...
called the reintroduction "a meaningful moment in U.S. history". The company hotline received 31,600 calls in the two days after the announcement. The new product continued to be marketed and sold as Coke (until 1992, 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. Some who tasted the reintroduced formula were not convinced that the first batches really were the same formula that had supposedly been retired that spring. This was true for a few regions, because Coca-Cola Classic differed from the original formula in that all bottlers who had not already done so were using
high fructose corn syrup High-fructose corn syrup (HFCS), also known as glucose–fructose, isoglucose and glucose–fructose syrup, is a sweetener made from corn starch. As in the production of conventional corn syrup, the starch is broken down into glucose by enzy ...
(HFCS) instead of
cane sugar Sucrose, a disaccharide, is a sugar composed of glucose and fructose subunits. It is produced naturally in plants and is the main constituent of white sugar. It has the molecular formula . For human consumption, sucrose is extracted and refine ...
to sweeten the drink, though most had by this time. "There is a twist to this story which will please every humanist and will probably keep Harvard professors puzzled for years," said Keough 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." Gay Mullins, founder of the organization ''Old Cola Drinkers of America'' (which had lobbied Coca-Cola to either reintroduce the old formula or sell it to someone else), was given the first case of Coca-Cola Classic. Later he complained that the drink now made him sick, which he blamed on the drink's use of HFCS; he also claimed that HFCS had dulled his taste buds, accounting for his preference for New Coke in taste tests.


Aftermath and legacy

By the end of 1985, Coca-Cola Classic was substantially outselling both New Coke and Pepsi. Six months after the rollout, Coke's sales had increased at more than twice the rate of Pepsi's. New Coke's sales dwindled to a three percent share of the market, although it was selling quite well in Los Angeles and some other key markets. Later research, however, suggested that it was not the return of Coca-Cola Classic, but instead the nearly unnoticed introduction of
Cherry Coke Coca-Cola Cherry (originally marketed and stil commonly referred to as Cherry Coke) is a cherry-flavored version of Coca-Cola. It is produced and distributed by The Coca-Cola Company and its bottlers in the United States and some international m ...
, which appeared almost simultaneously with New Coke, that can be credited with the company's success in 1985. The Coca-Cola Company spent a considerable amount of time trying to figure out where it had made a mistake, ultimately concluding that it had underestimated the public reaction of the portion of the customer base that would be alienated by the switch. This would not emerge for several years afterward, however, and in the meantime the public simply concluded that the company had, as Keough suggested, failed to consider the public's attachment to the idea of what Coke's old formula represented. While that has become conventional wisdom in the ensuing years, some analyses have suggested otherwise. This
populist Populism refers to a range of political stances that emphasize the idea of "the people" and often juxtapose this group against " the elite". It is frequently associated with anti-establishment and anti-political sentiment. The term develop ...
version of the story served Coke's interests, however, as the episode did more to position and define Coca-Cola as a brand embodying values distinct from Pepsi. Allowing itself to be portrayed as a somewhat clueless large corporation forced to withdraw from a big change by overwhelming public pressure flattered customers, as Keough put it, "We love any retreat which has us rushing toward our best customers with the product they love the most." Bottles and cans continued to bear the "Coca-Cola Classic" title until January 2009, when the company announced it would stop printing the word "Classic" on the labels of bottles sold in parts of the southeastern United States. The change was part of a larger strategy to rejuvenate the product's image.
Bill Cosby William Henry Cosby Jr. ( ; born July 12, 1937) is an American stand-up comedian, actor, and media personality. He made significant contributions to American and African-American culture, and is well known in the United States for his eccentric ...
ended his long-time advertising for Coca-Cola, claiming that his commercials praising the superiority of the new formula had hurt 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 even more firmly established. At the time,
Roger Enrico Roger Anthony Enrico (November 11, 1944 – June 1, 2016) was an American businessman who is best known for his lengthy service as chief executive officer of PepsiCo. Early life Enrico was born on November 11, 1944, to Italian immigrants in the ...
, then head of PepsiCo's American operations, likened New Coke to the
Edsel Edsel is a discontinued division and brand of automobiles that was marketed by the Ford Motor Company from the 1958 to the 1960 model years. Deriving its name from Edsel Ford, son of company founder Henry Ford, Edsels were developed in an effor ...
.''
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''; July 22, 1985; 48
Later, when he became PepsiCo's CEO, he modified his assessment of the situation, saying that had people been fired or demoted over New Coke, it would have sent a message that risk-taking was strongly discouraged at the company.En In the late 1990s, Zyman summed up the New Coke experience thus: New Coke continued to do what it had originally been designed to do: win taste tests. In 1987, ''
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'' 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. When this group was given a chance to try all three in a blind test, New Coke slightly edged out Pepsi, but many drinkers reacted angrily to finding they had chosen a brand other than their favorite. Goizueta claimed that he never once regretted the decision to change Coca-Cola. He even threw a tenth anniversary party for New Coke in 1995 and continued to drink it until his death in 1997.


After Coca-Cola Classic

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. "You would have thought we'd cured cancer," said one executive. But confusion reigned at the company's marketing department, which had to design a plan to market two Coca-Colas where such plans were inconceivable just a few months before. Coca-Cola Classic did not need much help, with a "Red, White and You" campaign showcasing the American virtues many of those who had clamored for its reintroduction had pointedly reminded the company that it embodied. But the company was at a loss to sell what was now just "Coke". Obviously, "The Best Just Got Better" could no longer be used. Marketers fumbled for a strategy for the rest of the year. Matters were not helped when McDonald's announced shortly after the reintroduction of Coca-Cola Classic, that it was immediately switching from New Coke back to original Coca-Cola at all of its restaurants. At the beginning of 1986, however, Coke's marketing team found a strategy by returning to one of their original motives for changing the formula: the youth market that preferred Pepsi.
Max Headroom Max Headroom is a fictional artificial intelligence (AI) character portrayed by actor Matt Frewer. Advertised as "the first computer-generated TV presenter", Max was known for his biting commentary on a variety of topical issues, arrogant wit, ...
, the purportedly computer-generated media personality played by
Matt Frewer Matthew George Frewer (born January 4, 1958) is an American-Canadian actor, singer and comedian. He portrayed the 1980s icon Max Headroom in the 1985 TV movie and 1987 television series of the same names. He became prominent when playing role ...
, was chosen to replace Cosby as the spokesman for Coke's new "Catch the wave" campaign. With his slicked-back hair and sunglasses, he was already known to much of the U.S. youth audience through appearances on MTV and
Cinemax Cinemax is an American pay television, cable, and satellite television network owned by the Home Box Office, Inc. subsidiary of Warner Bros. Discovery. Developed as a companion "maxi-pay" service complementing the offerings shown on parent ...
. The campaign was launched with a television commercial produced by
McCann Erickson McCann, formerly McCann Erickson, is an American global advertising agency network, with offices in 120 countries. McCann is part of McCann Worldgroup, along with several other agencies, including direct digital marketing agency MRM//McCann, expe ...
New York, with Max saying in his trademark stutter, "C-c-c-catch the wave!" and referring to his fellow "Cokeologists". In a riposte to Pepsi's televisual teasings, one showed Headroom asking a Pepsi can he was "interviewing" how it felt about more drinkers preferring Coke to it and then cut to the condensation forming on, and running down, the can. "S-s-s-s-sweating?" he asked. The campaign was a huge success, and surveys likewise showed that more than three-quarters of the target market were aware of the ads within two days. Coke's consumer hotline received more calls about Max than any previous spokesperson, some even asking if he had a girlfriend. The ads and campaign continued through 1987, and were chosen as best of 1986 by Video Storyboard of New York.


Coke II

In 1985, New Coke was sold only in the United States,
United States territories Territories of the United States are sub-national administrative divisions overseen by the federal government of the United States. The various American territories differ from the U.S. states and tribal reservations as they are not sover ...
, and Canada while the original formula continued to be sold in the rest of the world. New Coke was eventually returned to the company's product portfolio; it was test-marketed in certain U.S. cities under the name Coke II in 1990, which was taken national in late 1992, despite the company's original intention not to create a second brand. Filmmaker
Miranda July Miranda July (born Miranda Jennifer Grossinger; February 15, 1974) is an American film director, screenwriter, singer, actress and author. Her body of work includes film, fiction, monologue, digital presentations and live performance art. She w ...
suggested the name of Coke II while working as a tastemaker for an ad agency. The Coca-Cola Company did practically nothing to promote or otherwise distinguish it. In a market already offering several choices of drinks calling themselves "Coke" in some fashion or another, the public saw little reason to embrace a product they had firmly rejected seven years earlier, and within about a year, Coke II was largely off the American shelves again. By 1998, it could only be found in a few scattered markets in the Northwest, Midwest and some overseas territories. In July 2002, Coca-Cola announced that Coke II would be discontinued entirely. On August 16, 2002, the Coca-Cola Company announced a change of the label of Coke Classic in which the word "Classic" was no longer so prominent, leading to speculation that it would eventually be removed and the last traces of New Coke eliminated.John H. McConnell; ''How to Design, Implement and Interpret an Employee Survey'', AMACOM Division of the American Management Association, , 2003, 3. In 2009, Coca-Cola permanently removed "Classic" from its North American packaging.


Commercial legacy

"For a product so widely despised," noted ''
AdWeek ''Adweek'' is a weekly American advertising trade publication that was first published in 1979. ''Adweek'' covers creativity, client–agency relationships, global advertising, accounts in review, and new campaigns. During this time, it has cover ...
'' blogger Tim Nudd in 2006, "New Coke (a.k.a. Coke II) still gets an admirable amount of ink." He noted '' Blink: The Power of Thinking Without Thinking'' (2005) by
Malcolm Gladwell Malcolm Timothy Gladwell (born 3 September 1963) is an English-born Canadian journalist, author, and public speaker. He has been a staff writer for ''The New Yorker'' since 1996. He has published seven books: '' The Tipping Point: How Little ...
, and '' Why Most Things Fail: Evolution, Extinction and Economics'' (2005) by
Paul Ormerod Paul Andrew Ormerod (born 20 March 1950) is a British economist who is a partner at Volterra Partners consultancy. Additionally, he is a visiting professor at UCL Centre for Decision Making Uncertainty. Research Ormerod has researched complexity ...
, that dealt with it at some length, as well as two recent mentions in ''
Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also r ...
'' and ''
Sports Illustrated ''Sports Illustrated'' (''SI'') is an American sports magazine first published in August 1954. Founded by Stuart Scheftel, it was the first magazine with circulation over one million to win the National Magazine Award for General Excellence twi ...
''. Within Coca-Cola, the role the company's bottlers had played in forcing its hand led executives to create a new subsidiary,
Coca-Cola Enterprises Coca-Cola Enterprises was a marketer, producer, and distributor of Coca-Cola products. It was formerly the anchor bottler for Western Europe and most of North America. Coca-Cola Enterprises' products included Coca-Cola, Diet Coke, Coke Zero, ...
, which bought out several of the larger bottlers and placed distribution and marketing efforts more tightly under Coca-Cola's control.


Conspiracy theories

The Coca-Cola Company's apparently sudden reversal on New Coke led to
conspiracy theories A conspiracy theory is an explanation for an event or situation that invokes a conspiracy by sinister and powerful groups, often political in motivation, when other explanations are more probable.Additional sources: * * * * The term has a nega ...
, including: * The company intentionally changed the formula, hoping consumers would be upset with the company, and demand the original formula to return, which in turn would cause sales to spike. Keough, the company president, answered this speculation by saying "We're not that dumb, and we're not that smart." * The putative switch was planned all along to cover the change from sugar-sweetened Coke to much less expensive HFCS, a theory that was supposedly given credence by the apparently different taste of Coke Classic when it first hit the market (the U.S. sugar trade association took out a full-page ad lambasting Coke for using HFCS in all bottling of the old formula when it was reintroduced). In fact, Coca-Cola began allowing bottlers to remove up to half of the product's cane sugar as early as 1980, five years before the introduction of New Coke. By the time the new formula was introduced, most bottlers had already sweetened Coca-Cola entirely with HFCS. * It provided cover for the final removal of all
coca Coca is any of the four cultivated plants in the family Erythroxylaceae, native to western South America. Coca is known worldwide for its psychoactive alkaloid, cocaine. The plant is grown as a cash crop in the Argentine Northwest, Bolivia, ...
derivatives from the product to placate the
Drug Enforcement Administration The Drug Enforcement Administration (DEA; ) is a United States federal law enforcement agency under the U.S. Department of Justice tasked with combating drug trafficking and distribution within the U.S. It is the lead agency for domestic en ...
, which was trying to eradicate the plant worldwide to combat an increase in
cocaine Cocaine (from , from , ultimately from Quechua: ''kúka'') is a central nervous system (CNS) stimulant mainly used recreationally for its euphoric effects. It is primarily obtained from the leaves of two Coca species native to South Ameri ...
trafficking and consumption. While Coke's executives were indeed relieved the new formula contained no coca and concerned about the long-term future of the
Peruvian government , border = Central , image = , caption = Logo of the Government of Peru , date = 1990 , state = Peru , address = Government Palace , leader_title = President of PeruWhile there is ...
-owned coca fields that supplied it in the face of increasing DEA pressure to end cultivation of the crop, according to author
Mark Pendergrast Mark Pendergrast (born 1948) is an American independent scholar and author of fourteen books, including three children's books. His books are mainly non-fiction and cover a wide range of topics, most notably repressed memories. He is a voluntee ...
there was no direct pressure from the DEA on Coca-Cola to do so. This theory was endorsed in a ''Time'' article, as well as by historian Bartow Elmore, who claims the reformulation was made in response to the escalating
War on Drugs The war on drugs is a global campaign, led by the United States federal government, of drug prohibition, military aid, and military intervention, with the aim of reducing the illegal drug trade in the United States.Cockburn and St. Clair, 1 ...
by the
Reagan Administration Ronald Reagan's tenure as the 40th president of the United States began with his first inauguration on January 20, 1981, and ended on January 20, 1989. Reagan, a Republican from California, took office following a landslide victory over ...
.


Taste test problems

In his book '' Blink: The Power of Thinking Without Thinking'' (2005),
Malcolm Gladwell Malcolm Timothy Gladwell (born 3 September 1963) is an English-born Canadian journalist, author, and public speaker. He has been a staff writer for ''The New Yorker'' since 1996. He has published seven books: '' The Tipping Point: How Little ...
relates his conversations with market researchers in the food industry who put most of the blame for the failure of New Coke on the flawed nature of taste tests. They claim most are subject to
systematic bias Systematic may refer to: Science * Short for systematic error * Systematic fault * Systematic bias, errors that are not determined by chance but are introduced by an inaccuracy (involving either the observation or measurement process) inheren ...
es. Tests such as the
Pepsi Challenge The Pepsi Challenge is an ongoing marketing promotion run by PepsiCo since 1975. It is also the name of a cross country ski race at Giant's Ridge Ski Area in Biwabik, Minnesota, an event sponsored by Pepsi. Method The challenge originally took th ...
were "sip tests", meaning that drinkers were given small samples (less than a can or bottle's worth) to try. Gladwell contends that what people say they like in these tests may not reflect what they actually buy to drink at home over several days. Carol Dollard, who once worked in product development for PepsiCo, told Gladwell: "I've seen many times where the sip test will give you one result and the home-use test will give you the exact opposite." For example, although many consumers react positively to the sweeter taste of Pepsi in small volumes, it may become unattractively sweet when drunk in quantity. A more comprehensive testing regimen could possibly have revealed this, Gladwell's sources believe. Gladwell reports that other market researchers have criticized Coke for not realizing that much of its success as a brand came from what they call sensation transference, a phenomenon first described by marketer Louis Cheskin in the late 1940s: tasters unconsciously add their reactions to the drink's packaging into their assessment of the taste. For example, one of the researchers told Gladwell that his firm's research found
7-Up 7 Up (stylized as 7up outside North America) is an American brand of lemon-lime-flavored non-caffeinated soft drink. The brand and formula are owned by Keurig Dr Pepper although the beverage is internationally distributed by PepsiCo. 7 Up comp ...
drinkers believed a sample from a bottle with a more yellow label was more "lemony", although the flavor was identical. In Coke's case, it is alleged that buyers, subject to sensation transference, were also "tasting" the red color of the container and distinctive Coca-Cola script. It was therefore, in their opinion, a mistake to focus solely on the product and its taste. "The mistake Coke made was in attributing their loss in share entirely to the product." said Darrel Rhea, an executive with the firm Cheskin founded. He points to PepsiCo's work in establishing a youth-oriented brand identity from the 1960s as having more bearing on its success. Coke considered but rejected gradually changing the drink's flavor incrementally, without announcing they were doing so. Executives feared the public would notice and exaggerate slight differences in taste. In 1998, Joel Dubow, a professor of food marketing at
St. Joseph's University Saint Joseph's University (SJU or St. Joe's) is a private Jesuit university in Philadelphia and Lower Merion, Pennsylvania. The university was founded by the Society of Jesus in 1851 as Saint Joseph's College. Saint Joseph's is the seventh olde ...
, tested this "flavor balance hypothesis" and argued that it was not true. He and fellow researcher Nancy Childs tested mixtures of Coca-Cola Classic and Coke II and found that the gradual changes of taste were not noticed by a significant number of tasters. Coke, he said, would have succeeded had it chosen this strategy.


2019 comeback

On May 21, 2019, Coca-Cola announced that the 1985 reformulation (once again bearing the name "New Coke") would be reintroduced in limited quantities to promote the third season of the
Netflix Netflix, Inc. is an American subscription video on-demand over-the-top streaming service and production company based in Los Gatos, California. Founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California, it offers a fi ...
series '' Stranger Things''. The show, set in 1985, included cans of New Coke in three of the season's episodes. About 500,000 cans of New Coke were produced for the promotion, to be sold mostly online. So many people were eager to buy it, however, that the volume of orders crashed the Coca-Cola website. Many fans complained because they wanted to order some, and the company apologized for the delays on social media platforms. It was also available in select vending machines in cities such as New York and Los Angeles. The reintroduced drink got friendlier reviews than it had in 1985. A writer at '' BuzzFeed'' said it was "nice and refreshing", lacking the lingering
aftertaste Aftertaste is the taste intensity of a food or beverage that is perceived immediately after that food or beverage is removed from the mouth. The aftertastes of different foods and beverages can vary by intensity and over time, but the unifying f ...
of Classic Coke. "I would take this over other colas," said a colleague. '' Food & Wine'' staffers also had favorable impressions: "sweeter and smoother than regular Coke", "almost syrupy in a pleasant way", although an older one who recalled the original rollout said it had not improved for them. Tim Murphy, a reporter for the progressive magazine ''
Mother Jones Mary G. Harris Jones (1837 (baptized) – November 30, 1930), known as Mother Jones from 1897 onwards, was an Irish-born American schoolteacher and dressmaker who became a prominent union organizer, community organizer, and activist. She h ...
'', suggested that, in ultimately overcoming an initial resistance that he saw as reactionary, New Coke had won the war after losing the battle. "Soft-drink trends have also proven Coke right about a willingness to adapt to new tastes: A majority of Coke sales today are non-Classic products, such as Diet and Coke Zero," he wrote. This explained the favorable response from tasters. "It tasted weird then; it tastes like what's normal now."


See also

*
List of defunct consumer brands This is a list of defunct consumer brands which are no longer made and usually no longer mass-marketed to consumers. Brands in this list may still be made, but are only made in modest quantities and/or limited runs as a nostalgic or retro style i ...
*
List of Coca-Cola brands The following is a list of products owned by the Coca-Cola Company, of which there are more than 500 in over 200 countries. A *Abbey Well – bottled water available in the United Kingdom *Ades – drinking water available in Indonesia *Ades ...
;Other soft drink failures * Crystal Pepsi, early 1990s failure for that company that is occasionally reintroduced for limited periods *
Dasani Dasani () is an American brand of bottled water created by the Coca-Cola Company, launched in 1999. It is one of many brands of Coca-Cola bottled water sold around the world. The product is filtered and bottled. Marketing United States Coca-C ...
, bottled water brand produced by Coca-Cola that failed in the United Kingdom despite huge marketing push; seen as UK equivalent of New Coke * MagiCan, failed Coca-Cola promotion in 1990 *
OK Soda OK Soda is a discontinued soft drink created by The Coca-Cola Company in 1993 that courted the American Generation X demographic with unusual advertising tactics, including neo-noir design, chain letters and deliberately negative publicity. Aft ...
, Coca-Cola brand intended to appeal to
Generation X Generation X (or Gen X for short) is the Western demographic cohort following the baby boomers and preceding the millennials. Researchers and popular media use the mid-to-late 1960s as starting birth years and the late 1970s to early 1980s a ...
drinkers in early 1990s known for its counterintuitive marketing, managed by Sergio Zyman ;Also *
Disco Demolition Night Disco Demolition Night was a Major League Baseball (MLB) promotion on Thursday, July 12, 1979, at Comiskey Park in Chicago, Illinois, that ended in a riot. At the climax of the event, a crate filled with disco records was blown up on the field ...
, 1979 baseball promotion that led to riot, also linked to reaction against social change


References


Further reading

* * * * * *


External links

* With a good talk on the problems of their research methodologies (focus groups v. surveys). * * * * {{Coca-Cola Coca-Cola brands Products introduced in 1985 Conspiracy theories in the United States Discontinued soft drinks Food and drink introduced in the 1980s Caffeinated soft drinks Products and services discontinued in 2002