Coca-Cola Co KO is pulling its Spiced flavor from shelves just six months after its launch.
What Happened: The company announced that it is “always looking at what our customers like and adjusting” its flavors. A spokesperson mentioned that Coca-Cola plans to phase out Spiced to introduce a new flavor in 2025, reported CNN on Tuesday.
Despite being marketed as a permanent addition, Spiced struggled with sales. The flavor, which combined traditional Coke with raspberry notes, was launched in February with a significant advertising campaign.
Spiced was aimed at attracting Gen-Z consumers who prefer bolder flavors.
The discontinuation of Spiced follows Coca-Cola’s broader strategy of updating its lineup. The company has also confirmed the end of Cherry Vanilla and Diet Coke with Splenda.
As consumer preferences shift towards sparkling waters and hydration beverages, Coca-Cola is expanding its Topo Chico water line and BodyArmor brand, according to the report.
Why It Matters: The discontinuation of Coca-Cola’s Spiced flavor is part of a broader strategy to keep up with evolving consumer tastes.
This move comes as Coca-Cola continues to demonstrate resilient growth despite economic challenges. In July, Goldman Sachs highlighted Coca-Cola’s impressive revenue and profit growth amid inflation, with a second-quarter top line beat and strong gross margin expansion.
Furthermore, Coca-Cola’s second-quarter earnings report revealed a 3% year-on-year sales growth to $12.4 billion, surpassing analyst expectations.
The company also raised its 2024 forecasts, reflecting its strong market position and ability to adapt to changing consumer preferences. Coca-Cola’s Sweet Surge in second-quarter earnings underscores its strategic adjustments.
Additionally, prominent investor Warren Buffett has significantly benefited from his stake in Coca-Cola. In a recent interview, Grant Cardone pointed out that Buffett earned $508 million as an investor in Coca-Cola last year.
Price Action: Coca-Cola Co. closed at $71.33 on Tuesday down 0.56% for the day. In after-hours trading, the stock ticked up 0.014%. Year to date, Coca-Cola shares have risen by 19.24%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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