In 1985, Coca-Cola’s leadership concluded the soft drink needed to change. Sales of nemesis Pepsi were on the rise and thousands of blind taste tests suggested consumers preferred something sweeter. Their answer: New Coke.
So, on April 23 of that year, they unveiled an “improved” formula, giving consumers a new taste, new logo, and a massive new product rollout. Welcome to New Coke. You can imagine the financial investment made.
Almost immediately, consumers revolted. Recorded consumer sentiment:
“Changing Coke is like breaking the American dream, like not selling hot dogs at a ball game.”
“My dearest Coke: You have betrayed me.”
“Millions of dollars worth of advertising cannot overcome years of conditioning. Or in my case, generations. The old Coke is in the blood.”
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That’s just a taste (so to speak) of the feedback Coke received. The company had wanted to re-energize the brand. They clearly energized something!
The company fielded up to 8,000 calls a day from dissatisfied customers and received over 40,000 complaint letters. Imagine if social media had existed then. Sales volume plummeted sending rival Pepsi sales through the roof. In today's dollars, this was roughly a $100M mistake.
Clearly, Coca-Cola got the message. A quick 79 days after New Coke’s launch, the original formula was back in market, rebranded as Coca-Cola Classic. Sales soared beyond previous highs. Consumers didn’t just return; they came back with enthusiasm and loyalty. Within a year, Coca-Cola was outperforming Pepsi more decisively than before. The Coca-Cola brand had emerged stronger than ever.
Why bring this up now?
Because the US is experiencing a New Coke moment all its own. You feel it, too, right?
Read on…
