USA TODAY International Edition
Diet Coke flavors sweeten results for Coca-Cola in Q1
Diet Coke has its fizz back.
The no-calorie soft drink is on track again after an eight-year run of flat sales, according to Coca-Cola, which released its first-quarter earnings Tuesday morning. Diet Coke’s comeback was powered by the addition of fruit-flavored versions.
It’s a turnaround in a category that has hit a rough patch as Millennials have been opting for drinks they perceive as healthier, whether they are juices or bottled water.
The once-popular low-calorie beverage category was hit by studies linking regular artificially-sweetened soda consumption to various health problems, such as dementia and stroke. A few cities have imposed soft-drink taxes, including diet versions, that become a drag on sales.
The last quarter that Diet Coke reported volume growth in North America was in the fourth quarter of 2010, Coca-Cola said.
To freshen its biggest name of no-cal soft drinks, Coca-Cola gave a national debut to a quartet of new Diet Coke flavors aimed at Millennials in January. Coca-Cola said it chose the flavors after combing through 30-plus options. They were Ginger Lime, Feisty Cherry, Zesty Blood Orange and Twisted Mango.
The soft drink is sold in sleek 12ounce cans, which together with aggressive marketing also helped stage what Coca-Cola hoped would be a splashy reintroduction.
Coca-Cola on Tuesday also reported double-digit growth in Coca-Cola Zero Sugar during the first quarter, which ended March 30. The company’s net income rose to $1.37 billion, or 32 cents per share, from $1.18 billion, or 27 cents, a year earlier. Before items, the company reported earnings of 47 cents per share, beating Wall Street estimates by a penny. Revenue fell 16% to $7.6 billion for the quarter.