Despite a huge splash early last year in January when Coca Cola introduced its new energy drink, it looks like the new beverage is going to fade away in North America. On Friday, the beverage giant announced that it is discontinuing its energy drink across the nation. Coca Cola Energy, made using guarana extracts and B vitamins, will be available in other parts of the world.
A company spokeswoman said that their strategy is focused on scaling big bets across a streamlined portfolio. She also said that the company needed to be disciplined with those that didn’t get the traction required for further investment and the company is scaling their best innovations including AHA and Coca Cola with Coffee, quickly and effectively.
Coca Cola recently amicably parted with LeBron James, one of its most recognized brand ambassadors from the past 17 years, who moved over to its biggest beverage rival Pepsi. On Thursday, Pepsi launched Mtn Dew Rise, an energy drink, with LeBron James. This may also be a factor though it has not been mentioned as well as conflict with Monster from Monster Beverage Corp.
The company has recently streamlined its products and is focusing on its popular beverages. Consumers have been choosing traditional beverages as the pandemic is losing its grip and the company is focusing on its popular sodas and flavored sparkling waters.
Coca Cola still has a majority stake in one of the biggest energy drink manufacturers — Monster Beverage Corp. It is not pushing the energy brand as of now. Coca Cola Energy sales were almost nonexistent as its sales were minimal at 0.7 percent of the market according to Beverages Digest.
Coke, Sprite and Monster had good sales during the pandemic, but the new launch was a disappointment, so it has been removed. Coca Cola Energy was launched when shelf space was a premium and sellers were not in the mood to welcome a new entrant.
Coca Cola’s current strategy is to streamline sales as it recovers from the pandemic and focus on its traditional brands which are still very popular despite aggressive marketing by its main rival PepsiCo.