Coca-Cola has decided to lay off its first diet soda brand – Tab Soda. Coca-Cola the famous beverage company, which is widely famous for its huge range of beverage brands has decided on a new strategy for its business. The Beverage giant is in the process of laying off a number of its brands which have a very low contribution to its annual revenue.
TaB soda was Coca-Cola’s first diet soda brand. The company recently stated in a statement that they will stop making this iconic drink. Tab was introduced in the year 1963. It found fame in the 1970s and early 1980s. The Coca-Cola company’s decision to lay off TAB SODA came to because lately, the brand’s market share has fallen to almost nothing. The diet soda brand boomed the business for Coca-Cola but soon it was overshadowed by Diet Coke and Diet Pepsi. Despite the diminishing market value of the brand, it is rumored that the company agreed to carry on Tab’s dead weight to appease a fiercely devoted fan base known as Tabaholics. That’s a splendid example of customer care right there!
But the Beverage maker has finally decided to cut their losses and streamline their product portfolio. Tab is not the only brand that is going to be let go of. Other brands like Odwalla smoothie and Zico coconut water are among the brands that Coca-Cola is shutting down.
In addition to these brands, Coca-Cola also said it will stop making Coca-Cola Life, a lower-calorie version of the cola sweetened with stevia, and Diet Coke Feisty Cherry. It’s also cutting regional offerings, including Northern Neck Ginger Ale and Delaware Punch.
The New Vision
James Quincey the CEO of Coca-Cola has repeatedly said his vision for the company is that the company would focus on brands that are growing and have the potential to achieve a large scale. Clearly, Tab with its diminishing market share does not fit into this new vision.
According to the stats, in 2020, Coca-Cola’s brand value was at 84 billion U.S. dollars. The top sellers of the company are Diet Coke, with 35% of sales, and Coke Zero Sugar, with 22%. Compared to these figures Tab and other brands that have a market only in specific countries do not contribute much to the overall sales.
The plan is the cut down on the expenses of these brands and divert those resources and capital towards R&D and marketing. Basically, the new vision is about investing more in brands that offer the beverage giant the best chance for growth.
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