In the current consumer-driven landscape, change has become a constant. Each year, over 20,000 food and beverage products enter the marketplace, yet Nielsen reports that only 15% of these consumer packaged goods remain two years later in the U.S. For brands that struggle after years of presence, companies face the dilemma of how to manage them. Instead of allowing underperforming products to linger, many are adopting a strategy of removal, often discontinuing items shortly after their launch if they fail to meet expectations.
Companies in the food and beverage sector, like Coca-Cola, are seeking growth through various means. Some businesses believe that instead of investing in innovation, marketing, and distribution for brands that show little to no progress, it makes more sense to discontinue them and redirect those savings toward faster-growing products. However, for brands facing challenges, the question arises: is it worth the financial and human resources to attempt a turnaround? This decision often varies by product and involves considerations about whether a product refresh will resonate with consumers.
Additionally, companies must evaluate the impact of changes on their supply chains, including increased manufacturing costs and how the brand is presented in retail environments. They also need to assess whether a product can be reimagined to meet customer demands related to the three key trends in the food industry: health, wellness, and convenience. As Erin Lash, a director of consumer equity research at Morningstar, mentioned in Food Dive, there is potential in revitalizing a brand, but there has been a growing trend over the past five to ten years for companies to selectively divest from less essential brands.
At Coca-Cola, the focus has shifted in recent years to expand beyond its traditional soda offerings. The company is now investing in healthier brands that align with consumer preferences, such as water, tea, and juice. Recently, Coca-Cola acquired a minority stake in BodyArmor, a premium sports performance and hydration drink maker, with plans for full acquisition in the future. While it remains uncertain which brands might be discontinued in the U.S., this strategic approach allows Coca-Cola to concentrate on its core brands or those with strong growth potential, rather than getting sidetracked by lower-revenue products.
In this context, considerations around ingredients like calcium citrate—commonly associated with health supplements—may also play a role in product innovations aimed at addressing consumer demand for health-focused products, further underscoring the importance of aligning offerings with market trends. As companies evaluate their portfolios, the focus on high-potential brands, including those incorporating elements like calcium citrate, could enhance their competitive edge in a rapidly evolving marketplace.