A new name helped Coke Zero attract more consumers

AFTER a summer makeover, sales of Coke Zero - now called Coke Zero Sugar - are on the rise again.

Coca- Cola revamped the popular diet soda in August with sleeker packaging, a new name and an “improved” recipe.

And although the ingredient list, which includes aspartame and caramel colour, has remained the same, Americans are now buying much more of the diet soft drink than they did earlier this year. ( The company says it “only tweaked the blend of natural flavours” to make the drink taste more like CocaCola.)

“The headline is: As Coke Zero Sugar comes into marketplaces, we’re seeing continued acceleration of (the drink) lifting the whole franchise,” James Quincey, president and chief executive of Coca- Cola, said in a Wednesday call with analysts. “We’re pleased with how it’s playing out.”

Overall, US sales of the drink are growing twice as fast as they were earlier this year, according to the company.

That increase marked a bright spot in an otherwise gloomy earnings report: Coca- Cola last Wednesday reported a 33 per cent drop in third- quarter profits, which fell to US$ 4 billion, or 92 cents per share, from a year earlier. Quarterly revenue decreased 15 per cent to US$ 9.1 billion in the same period.

The new Coke Zero Sugar is just one of more than 500 products the Atlanta-based beverage giant plans to reformulate this year as it scrambles to keep up with changing tastes.

“We recognise that too much sugar isn’t good for anyone, and we are continually evolving our business to reflect this fact,” Quincey said in a Q&A published on Coca- Cola’s website.

“While there’s no silver bullet that will end obesity, we believe our combined product, package and marketing efforts can be more effective at reducing the sugar people drink over the long term.” — WP-Bloomberg