Thirty years ago, April 23, 1985, The Coca-Cola Company released a reformulated version of their famous drink. It was heavily marketed as “the new taste of Coke,” and its launch followed a period of concern for the brand as they lost market share to rival Pepsi. Facing a growing dilemma, there was a knee-jerk reaction to alter the traditional recipe, one which tens of millions of loyal customers had grown to love, and plan ahead for a successful year.
The new drink rapidly gained the name “New Coke” but, to the company’s shock, there followed a major public outcry. Many consumers began to “panic buy” traditional Coke, inundate the company's call centres with complaints, and even file lawsuits. An overwhelmed Coca-Cola were forced to backtrack apologetically, and by the summer of 1985 they were once again the American public's fizzy drink of choice. Three decades after the crisis, this is how New Coke revitalised a major brand ... after almost destroying it.
The Origins of Change
John Stith Pemberton. Photo from Wikimedia Commons.
Coca-Cola was invented in 1886 by John Stith Pemberton in Columbus, Georgia. In the early years, as part of the coca-based drink craze of the time, it was marketed as a health drink which could alleviate numerous ailments. One of the beneficial ingredients back then was cocaine, but by 1903 this was removed in favour of caffeine.
The company rapidly became a success story, with Coke becoming an internationally renowned brand. To this day it's everywhere and often plays a central part in people's lives; consumers have a genuine emotional connection, as Coke has played a part in many childhoods, family occasions, and formative years.
Whilst the public image of the brand seemed secure by the 1980s, behind the scenes all was not well. As the company explain in The Real Story of New Coke, “In 1985, The Coca-Cola Company's share lead over its chief competitor, in its flagship market, with its flagship product, had been slowly slipping for 15 consecutive years. The cola category in general was lethargic. Consumer preference for Coca-Cola was dipping, as was consumer awareness.”
The brand held taste testing sessions with 200,000 individuals, most of whom determined they preferred the taste of rival drink Pepsi. Coca-Cola, in a bit of a panic, decided to reformulate and provide a fresh perspective. What they didn't realise at the time was the tests failed to show, “the bond consumers felt with their Coca-Cola—something they didn't want anyone, including The Coca-Cola Company, tampering with.” Blissfully unaware of any trouble the change could cause, they powered on ahead.
The Backlash
Back in 1985 the expectation was for the new product to halt Pepsi's run of success, but the 23rd of April is likely considered a key moment in Coke's history. As they've acknowledged, “On that day, The Coca-Cola Company took arguably the biggest risk in consumer goods history, announcing that it was changing the formula for the world's most popular soft drink, and spawning consumer angst the likes of which no business has ever seen.”
It's apparent many consumers initially embraced “the new taste of Coke.” The problems arose from loyal fans who began panic buying classic cola in an attempt to stockpile a supply. Whilst they did, many took to actively bombarding Coca-Cola with calls demanding the old formula be reinstated. Coke had disastrously failed to understand public affection for their brand and, by the time June rolled around, they were receiving 1,500 calls of outrage each day (in total some 400,000 calls were received, and this was matched by letters demanding a return to form).
In Thomas Oliver’s 1986 book The Real Coke, The Real Story, it was revealed that angry customers addressed staff members as “Chief Dodo,” with others suggesting it was the stupidest business decision in America’s history. To make matters worse, Pepsi, naturally, weighed in on the situation and began running marketing campaigns mocking Coca-Cola’s dilemma.
Worse was to follow, as amongst the tens of thousands of complaints emerged a lawsuit. A Seattle man, Gay Mullins, launched the proceeding, but not before he'd loaned $120,000 to set up a PR firm called Old Cola Drinks of America. Eventually he received 60,000 calls a day (presumably in support). It seemed to do the trick. Although the mass outcry didn't deter Coca-Cola to begin with, by July 11, 1985 (after only three months of New Coke) they relented and announced “classic” Coke would be reinstated.
With the classic option back on the market an odd thing happened. After over a dozen years of steadily losing ground in the market, New Coke bizarrely reinstated America’s love affair with the “classic” variety and led to a sales resurgence. As they state, “The events of 1985 changed forever the dynamics of the soft-drink industry and the success of The Coca-Cola Company, as the Coca-Cola brand soared to new heights and consumers continued to remember the love they have for Coca-Cola.”
The Aftermath ... And New Coke’s Demise
By the Summer of 1985 the outcry had subsided in favour of widespread appreciation. As tales of consumers spending up to $1,000 in stockpiling during the crisis spread, the brand realised their power over rivals—they were a company deeply rooted in America's conscience. With this in mind they persevered with New Coke, maintaining its position on store shelves alongside Coca-Cola Classic. Sadly for New Coke, its undistinguished beginnings met with an undistinguished end. It was rebadged as Cola-Cola II in 1992, but was discontinued internationally a decade later.
In subsequent years The Coke Company has tried its hand at all manner of different tastes. Consumers have seen Coke Zero (supposedly sugar free, as part of growing public health awareness), Cherry, Vanilla, Blāk, Orange, Lemon, Lime, Caffeine-Free, and Life. The latter (which launched internationally throughout 2014), is a lower calorie take on the classic formula which is sweetened by natural sources. All have, thankfully, passed without any major international incidents.
Coca-Cola Cans Photo Credit: The Coca-Cola Company
