Coca-Cola To Replace Coke Zero In U.S.; Q2 Revenues Rise

Posted On: 7/27/2017

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ATLANTA -- Coca-Cola Co. announced this week that its zippo-calorie Coke Zero would henceforth be known as Coca-Cola Zero Sugar. The company said that the replacement soft drink, which will be released in the U.S. in August, is the "best-tasting zero-sugar Coca-Cola yet." Foreign sales of the new recipe and brand showed encouraging signs; it's sold in more than two dozen markets overseas.

The beverage giant reportedly spent more than five years on research, recipe mixing and testing of Coca-Cola Zero Sugar before starting sales, taking those steps to prevent another flop like the reformulated New Coke brand introduced in 1985.

The company this week reported stagnant beverage sales globally for the second quarter, but said it was encouraged by the performance of no-calorie and low-calorie sodas in foreign markets. Sales of drinks prepared for immediate consumption also provided a lift. The beverage giant's total drink sales were effectively unchanged, compared with a year ago, but the company said the performance of Coca-Cola Zero Sugar was a bright spot.

Coca-Cola's second-quarter revenue rose 3% over the same period a year earlier. Net revenue fell 16% to $9.7 billion, which was attributed to the company's transforming bottling operations into franchises and unfavorable currency rates. Sparkling soft drink sales were even, tea and coffee sales rose 2%, sales of water and sports drinks increased 1%, and sales of juice, dairy and plant-based beverages were up 3%. Net income fell 60% to $1.37 billion.