Coke Discontinues Underperforming Energy Drink in North America
(Bloomberg) -- Coca-Cola Co. is discontinuing its underperforming Coca-Cola Energy drink in North America just over a year after it was rolled out.
The beverage giant said the decision was part of a broader strategy to streamline its product portfolio.
“An important component to this strategy is the consistent and constant evaluation of what’s performing and what’s not,” Coke said in an emailed statement. “We need to be disciplined with those that don’t get the traction required for further investment. It is for that reason we’ve made the decision to discontinue Coca-Cola Energy in North America.”
Like many food and beverage companies that have reduced their product offerings during the pandemic, Coca-Cola said in 2020 it planned to prune its portfolio with a goal of offering about 200 master brands, a 50% reduction from the current level. It already said it would drop some lower-performing items like Tab diet soda and Zico coconut water in the U.S.
While Coke’s energy drink has been around for several years, the company only introduced it in the U.S. in January 2020. Pulling the plug on the product could ease tensions with Monster Beverage Corp., in which Coke is a major shareholder. Monster opposed the branded energy drink, with the companies going to arbitration over the issue. A tribunal ultimately decided that Coke’s plans were not a violation of the contract between the two companies.
Coke’s shares rose less than 1% at 11:08 a.m. in New York. Monster jumped 3%.
The discontinuation was earlier reported by Beverage Digest.
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