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Coca-Cola dropping some products from its lineup

Coca-Cola is shaking up its product offerings and removing some less-popular items from its lineup. Yahoo Finance’s Ines Ferre has the details.

Video Transcript

BRIAN SOZZI: OK, even giants like Coca-Cola aren't immune to the global pandemic. The company is shaking up its product line by dropping some less popular products. Ines, really, Coke is trying to prune its portfolio. If you are a follower of Coca-Cola, these moves have been telegraphed, but tough to see some favorite brands go.

INES FERRE: Yeah, that's right including, Zico coconut water brand. That's the big one. The Coca-Cola is also considering some less popular versions of Coke and Diet Coke. Diet Coke Feisty Cherry is under review right now, Coke Life and also Delaware Punch, those are some of the names that are under review. Now, late August, Coca-Cola had announced that it would offer buyouts to some 4,000 workers. It is going through restructuring efforts.

As for Zico, now, Coke acquired this brand back in 2003. And at the time, coconut water was just starting out. The market was really starting to boom, and Zico was the number two in the market, but it couldn't keep up with Vita Coco. That's the most popular brand, and many brands in coconut water just started appearing on the shelves. So you saw this big boom in the coconut water business, then coconut water started to slump. And during the pandemic, actually, coconut sales went up a little more than 4%. But as far as Zico was concerned, those sales slumped.

So we did ask Coca-Cola about this, and Coke has said that this decision was not made lightly and comes at a time when we are hyper focused on delivering on what consumers wants and needs while driving scale growth across total beverage portfolio. This is about right-sizing its portfolio. Really, this is all about making sure that it's focused on the products that are most in demand right now, right-sizing its portfolio, and really, part of this bigger restructuring plan that it also announced earlier this summer.

BRIAN SOZZI: Ines, I knew coconut water was doomed when I saw coconut water lemonade. I mean, that just doesn't make any sense. Why are you selling that in the stores?

INES FERRE: Oh, they've got coconut water pineapple. They've got all sorts of flavors out there now.

BRIAN SOZZI: Yeah, it's time to reel it in.

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