Q2 2020 saw Coca-Cola’s organic revenue drop 26%.
In Coca-Cola’s earning call, CEO, James Quincey announced exiting its “zombie brands” as it continues its plan to “ruthlessly prioritise” core brands and stock keeping units to “strengthen the resilience” of its supply chain. Over half of the company’s brands are single-country ones with little to no scale.
Further, these brands have a total combined revenue of around 2% of the company’s total. Coca-Cola is looking to prioritise a portfolio that includes strong global brands, regional and scaled local brands, so as to reach critical age cohorts at need-based and drinking occasions.
To ensure all its investments have a future role, the company is establishing a “new path forward” for marketing effectiveness. Coca-Cola is currently reassessing overall marketing ROI on ad viewership across traditional media to improving effectiveness in digital.
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