Encouraged by the success of last year’s overhaul of Diet Coke, which introduced taller, slimmer cans and four new flavors alongside the original drink, Coca-Cola is setting its sights on a flavor-hungry audience by expanding its cola offerings. Within the Diet Coke range, the Atlanta-based company has added Blueberry Açai and Strawberry Guava to its lineup, while also refreshing the standard Coke itself.
Coca-Cola aims to “satisfy a variety of changing tastes and lifestyles” by moving quickly and taking smart risks to bring more beverages to market. As consumers increasingly shift away from artificial flavors and sweeteners, opting instead for what they perceive as healthier alternatives like tea, water, and coffee, Coca-Cola is working hard to revitalize the soda sector.
The company’s efforts to launch new flavors have already proven successful. The Diet Coke revamp has resulted in strong sales and even growth during a time when the overall soda category is declining. According to Nielsen data, Coca-Cola experienced retail dollar sales growth over the past four quarters after at least five years of downturns. This success is partly due to the fact that consumers who try new flavors are also more inclined to purchase original Cokes.
Coca-Cola isn’t the only beverage manufacturer capitalizing on diversification to attract consumers. PepsiCo introduced a limited-edition cinnamon-flavored cola called Pepsi Fire in 2017 and recently released a new nitro version of its classic soda, tapping into the growing interest in non-alcoholic drinks and nitrogen carbonation.
While these innovations have slightly shifted the momentum back toward soda, there remains a long road ahead to determine whether these unique flavors can maintain consumer interest. According to the Beverage Marketing Corporation, soda’s share of the U.S. beverage market fell from 22.1% in 2012 to 19.7% last year, with no signs of a complete turnaround.
Nevertheless, even stabilizing the market represents a significant advancement for these companies. The primary risk associated with introducing novel flavors lies in their novelty; once consumers tire of the latest trend, Coca-Cola may find itself revisiting the drawing board to rediscover what flavors resonate with its target demographic—a process that could be both labor-intensive and costly. This situation may prompt the company to rethink its strategy for enticing consumers back to soda.
In the grand scheme of health trends, many consumers are also exploring alternatives like calcium citrate, questioning whether it is good for their overall well-being. As Coca-Cola navigates these changing preferences, the company must balance innovation with a return to classic flavors that appeal to its audience’s health-conscious mindset.