Last Revised: 02/06/2018

Backgrounder

Coca- rebrands and modernizes for a new look in 2018.

Background:

Coca-Cola has re-energized their iconic Diet Coke for a new, fresh look in 2018, after 35 years of the same packaging and taste. This rebrand included introducing four new flavors: Zesty

Blood Orange, Feisty Cherry, Twisted Cherry and Ginger Lime; as well as sleeker, more modern

12-oz. packaging. The rebrand has been in the works for two years, and was “fueled by consumer research pointing to younger Americans’ affinity for big, yet refreshing and great- tasting, flavors in their and beverages,” according to the Coca-Cola company.

The push for a redesign came to appeal to millennial consumers; to “modernize what has made Diet Coke so special for a new generation” said Rafael Acevedo, Coca-Cola North

America’s group director for Diet Coke. He said Coca-Cola wanted to push towards making Diet

Coke appear “more reliable and authentic” to their consumers, specifically targeting a millennial audience. Soda consumption has declined as concerns for health and wellness have grown, and a redesign pushing a more modern, sleek soda attempts to stay in front of that decline.

Current Situation:

Diet Coke wanted to “appeal to a consumer seeking bolder flavors, but without alienating the loyal Diet Coke fan base,” said James Sommerville, vice president of Coca-Cola. The rebrand came as marketing research began to indicate that “consumers are more likely to cut back on cola drinks than fruit juices,” according to an NPD survey from September 2017, and that more than half of U.S. adults and teens are trying to get less in their diet. In response to research detailing evidence of this nature, Coca-Cola is making active strides to focus on the sugar content in their products, according to MarketWatch, and are looking at ways to change their formulas to lower the amount of sugar included. This newly health-conscious generation had caused Diet Coke’s dollar sales to fall 37.2 percent in the 52 weeks ending Dec.

2, according to Nielsen data reported by Wells Fargo. However, Diet Coke continues to dominate the diet soda market, even before the rebrand. Some 20,000 Diet Cokes are consumed every minute in the U.S., according to the brand.

The introduction of four new flavors in addition to the original Diet Coke taste came as a result of consumer research indicating that millennials want bold tastes,

“from hoppy craft beers to spicy sauces,” said Coca-Cola. The company spoke to more photo courtesy of Coca-Cola than 10,000 people from across the country to gauge ideas on new flavors and new packaging, and the winners were announced on Jan. 10 after testing more than 30 Diet Coke flavor combinations. The announcement was the first part of an ad campaign, featuring the tagline

“because I can.” The campaign mirrors Coca-Cola’s desire to “grow the brand beyond its loyalist following of female baby boomers,” said AdAge.com. The redesign is seen as a “personality evolution—a brand rejuvenation—for Diet Coke,” according to the company’s website.

Coca-Cola still believes in and invests in Diet Coke “because it’s a great-tasting, zero- calorie beverage loved by millions. While the low- and no-calorie beverage category has been under pressure, its performance has been improving recently, and Diet Coke remains an incredibly strong brand.”

Future Implications:

As a result of marketing research indicating trends towards healthier habits by millennial consumers, Diet Coke is moving toward a worldwide rebrand; launching first in the United

States in January 2018, then moving internationally in February 2018. Despite changing the flavors and look of Diet Coke’s new product, Coca-Cola emphasized that they are not changing the formula of the low-calorie drink; meaning that the new flavors will still contain , an artificial sweetener.

Redesigning the packaging, both the look and how they are sold, will hopefully be a step in the right direction toward obtaining a following within this new consumer group. Coca-Cola has indicated that the next step will be to look “at ways to change their formulas to lower the amount of sugar included.” In a blog post from February 2017, the company said that they were looking to make their “low- and no- sugar drinks more visible and easier to find, while adding vitamins, minerals, electrolytes and more sophisticated flavors to many of our most popular drinks.”

About Us:

According to the Coca-Cola website, “the Coca-Cola Company (NYSE: KO) is the world's largest beverage company, offering over 500 brands to people in more than 200 countries. Of our 21 billion-dollar brands, 19 are available in lower- or no-sugar options to help people moderate their consumption of added sugar. In addition to our namesake Coca-

Cola drinks, some of our leading brands around the world include: AdeS soy-based beverages,

Ayataka green tea, waters, Del Valle juices and nectars, , coffee, Gold Peak teas and coffees, , juices, sports drinks, Simply juices, smartwater, , vitaminwater, and Zico coconut water. At Coca-Cola, we're serious about making positive contributions to the world. That starts with reducing sugar in our drinks and continuing to introduce new ones with added benefits. It also means continuously working to reduce our environmental impact, creating rewarding careers for our associates and bringing economic opportunity wherever we operate.”

Links and References:

For more information about the Diet Coke rebrand, visit the Coca-Cola newsletter website, or follow them on Twitter, Facebook, LinkedIn and Instagram. For more information on the Diet Coke rebrand, visit the Diet Coke website or the Coca-Cola newsletter site.

Sources:

Coca-Cola company newsletter: http://www.coca-colacompany.com

Coca-Cola At a Glance: https://www.coca-colacompany.com/our-company/infographic-coca- cola-at-a-glance

Coca-Cola blog post: http://www.coca-colacompany.com/stories/inside-the-bottle

Coca-Cola Diet Coke release: http://www.coca-colacompany.com/stories/diet-coke-relaunch

Diet Coke website: https://www.dietcoke.com

Diet Coke “because I can campaign”: https://www.dietcoke.com/#flavors

Diet Coke new flavors: https://www.dietcoke.com/flavors/

MarketWatch Diet Coke article: https://www.marketwatch.com/story/coca-cola-rebrands-diet- coke-for-millennials-but-whats-in-the-can-may-be-the-problem-2018-01-10

AdAge Diet Coke article: http://adage.com/article/cmo-strategy/diet-coke-new-look-adds- flavors/311906/ ###