Cynical Capitalist

New Coke and its descendents

New Coke was the reformulation of Coca-Cola introduced in 1985, it originally had no separate name of its own, but was simply known as "the new taste of Coca-Cola" until 1992 when it was renamed Coca-Cola II. The American public's reaction to the change was negative and the new cola was a major marketing failure. The subsequent reintroduction of Coke's original formula, re-branded as "Coca-Cola Classic", resulted in a significant gain in sales, leading to speculation that the introduction of the New Coke formula was just a marketing ploy.Coca-Cola executives announced the return of the original formula on July 10, less than three months after New Coke's introduction. ABC News' Peter Jennings interrupted General Hospital to share the news with viewers. On the floor of the U.S. Senate, David Pryor called the reintroduction "a meaningful moment in U.S. history". The company hotline received 31,600 calls in the two days after the announcement.

1989 Coca-Cola had begun a "Coca-Cola in the morning" advertising campaign, yet it was Pepsi who took the movement to the next level. In a bid to capture the elusive morning beverage market, the bottler released Pepsi A.M., which featured 28 per cent more caffeine per ounce than its original soft drink. The idea flopped and was retired by 1990.

In 1992, PepsiCo introduced Crystal Pepsi to test marketsand began to sell it nationwide in 1993. A large marketing campaign was launched, including a series of television advertisements featuring Van Halen's hit song "Right Now” and a Super Bowl XXVII ad. In its first year, Crystal Pepsi captured a full percentage point of U.S. soft drink sales, nearly $0.5bn. Coca-Cola followed suit by launching Tab Clear, but both ultimately failed.

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