Since its creation in 1886 in Atlanta, Georgia, Coca Cola has been recognized for two main attributes: its iconic red branding and its crisp, refreshing taste.
In 1985, the company decided to take what it called the ‘biggest risk in consumer goods history,’ which led to an unprecedented national uproar.
For the first time in 99 years, Coca Cola’s leadership chose to alter the beloved formula, introducing it as New Coke.
There were legitimate reasons for this major decision.
Coca Cola had been losing market share to diet drinks and non-cola beverages for 15 years in a row.
In research, around 200,000 consumers claimed they favored the taste of New Coke over the original.
However, the broader American consumer audience had a very different opinion.
“We set out to change the dynamics of sugar colas in the United States, and we did exactly that – albeit not in the way we had planned,” admitted then-chairman and CEO Roberto Goizueta in 1995.
The launch of New Coke on April 23, 1985, caused significant turmoil, including street protests and angry calls for boycotts.
The company’s consumer hotline saw call volumes nearly quadruple to 1,500 per day, with ‘people seemingly holding any Coca-Cola employee personally responsible for the change,’ according to the company.
One individual, Gay Mullins, felt so compelled to act that he reportedly spent $30,000 of his own funds and three weeks of his time advocating for the return of the original recipe.
He argued that it wasn’t just about the new taste, but that the company had done something ‘un-American’ by removing his ‘freedom of choice.’
On Reddit, those who remember New Coke described it as ‘too sweet’ and resembling the taste of rival Pepsi.
The negative response was so intense that the original formula was reinstated just 79 days after New Coke’s launch.
The original was then marketed under the name Coca Cola Classic.
New Coke remained available for 17 years, although it was renamed Coke II in 1990 before finally being discontinued in 2002.
The company spent around $30 million on unwanted New Coke concentrate, along with $4 million on market and taste testing, according to the New York Times.
This amounts to a costly $34 million mistake, but was it truly an error?
Despite appearing as a failure, the rebranding actually resulted in the market boost Coca Cola aimed for.
Six months after New Coke’s introduction, Coca Cola sales were increasing at twice the rate of Pepsi, and by the end of 1985, Coca Cola Classic was significantly outselling both New Coke and Pepsi.
How about that for a turn of events?
Although it is considered one of the most notable marketing failures, New Coke ultimately demonstrated the strong popularity of the original brand.
Even though New Coke is no longer on store shelves, it can still be found online.
Two cans of the controversial drink were part of a promotional Stranger Things collectors pack that was sold on Amazon in 2020 for $39.99.
While that product is no longer available, some cans are being sold on eBay, so if you’re curious, you know where to look.