Posted on 11/04/2005 1:13:14 PM PST by Drew68
NEW YORK (Reuters) - Coca-Cola Co., the world's largest soft drink maker, said on Friday it would phase out its Vanilla Coke, Vanilla Diet Coke and Diet Coke With Lemon beverages in the United States by end of this year.
Coca-Cola shares were down 1.1 percent in afternoon trading on the New York Stock Exchange.
The announcement came a day after Coca-Cola said it would phase out Vanilla Coke and Vanilla Diet Coke in the United Kingdom early next year. The company said sales have declined.
Coca-Cola added that it plans to introduce Diet Black Cherry Vanilla Coke and Black Cherry Vanilla Coke in the United States in January 2006.
The company said Vanilla Coke, which was introduced in the United States in 2002 and Diet Vanilla Coke in 2003, could return sometime in the future. Details about whether Diet Coke With Lemon, which made its U.S. entry in 2001, would be brought back were not available.
"I don't know if we have ever taken out a flavor and brought it back to the market, but the landscape continues to change and we want to be as flexible as possible to adapt to the changing landscape," said Scott Williamson, a spokesperson for Coca-Cola.
The phase out follows declining sales for the brands in the United States. Vanilla Coke sales slipped to 35 million unit cases in 2004 from 90 million unit cases in 2002, while Vanilla Diet Coke sales dropped to 13 million unit cases last year from 23 million unit cases in 2003, according to Beverage Marketing, a beverage research and consulting firm.
Sales of Diet Coke with Lemon have fallen to 9.9 million unit cases in 2004 from 24 million unit cases in 2001, data showed.
Analysts have said that one of the keys to the company's future is to innovate new products that will help Coca-Cola capture more consumers who have moved away from sugary soft drinks to diet versions, or to healthier low-or no-calorie beverages such as water and orange juices with reduced sugar.
Both Coca-Cola and PepsiCo Inc., the No. 2 soft drink company, are battling for the allegiance of increasingly picky U.S. consumers. The United States is the largest market for the soft-drink companies.
"It is a rapidly changing beverage landscape and it is important for Coke to move quickly to deliver on what the consumer wants," said Gary Hemphill, managing director of Beverage Marketing. "The competition for shelf space is intense."
Shares of Dow Component Coca-Cola were down 44 cents at $42.15 on the NYSE.
I like Vanilla Coke too.
You can get Coke made with real sugar from Mexico. And around Passover, in the U.S. you can find Coke made with sugar.
Vanilla coke was my beverage of choice at the soda fountain after school.
I hated vanilla coke but loved Pepsi with Lemon. Apparently I was the only one, cause they still making it also.
YEA! That stuff was awful. PEPSI CLEAR!!
Vanilla Coke and Cherry Coke from the OLD SODA FOUNTAIN (Bobby Valentine's in Stamford had one) are great. The crap that Coke bottles is a different story.
Don't you mean Cherry-Coke?........
They CANT take my diet Vanilla Coke!
I want a Diet Cinnamon Coke.
I like the new Coke that is sweetened with Splenda.
I think RC missed a huge opportunity. They should have dropped the price for a while, back when they had an exclusive and gotten more people to try it. I think they could have taken significant market share. But their strategy may have been influenced by manufacturing capacity which continues to be tight for spenda.
You'll still be able to find Cream Sodas to satisfy you cravings........
I miss Tab!
Moxie is where its at!
They would do better to phase out corn syrup in the U.S.
You'll have to revert back to Cream Sodas..........
When they introduced the "New" coke (can't remember what they called it), did they stop production of Coke "Classic", or just market the other more heavily?
Is that the "Kosher for Passover" Coke? I've been wondering what the deal with that is.
Oh my, THAT sounds good!
I'm sorry to lose diet vanilla Coke, but frankly, I don't probably need to drink so much soda anyway.
susie
It is so bland. And too damn sweet. I wish they would return to real sugar instead of fructose. It just isn't right.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.