Coca-Cola will discontinue more than half its beverages - including its diet cola.
The company said it will be getting rid of around 200 brands in the coming quarters.
After announcing the end of several drinks Coca-Cola, which had already killed off its Zico, Odwalla and Tab beverages, will reduce its portfolio to concentrate on profitable offerings. The company continues to struggle owing to the disruptions caused by the pandemic.
The months of forced restaurant closures managed to significantly dent its revenue stream. For its third quarter, Coca-Cola reported a 9% decline in its net revenues to $8.7 billion.
The company said it would concentrate on new categories. This includes its recently introduced Topo Chico hard seltzer and its caffeinated seltzer drink AHA.
Coca-Cola's chief executive officer, James Quincey, mentioned during the company's latest earnings call that it had finalized which brands will be booted. Quincey didn't elaborate. However, he said the "hydration" category would likely see more cuts. This category includes Vitamin Water, Dasani and Powerade.
In its latest earnings report, sports-drink sales volumes fell by about 11% during the third quarter. Quincey said underperforming beverages that have "little to no scale" would be discontinued. He added that sales of underperforming brands accounted for about 2% only of its total revenue for the latest quarter.
Shutting down underperforming brands is expected to generate significant savings for the company. Coca-Cola said that the funds generated by the divestments should help it grow its more popular offerings and freed up resources will allow it to developer "higher-growth" products.
