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James Quincey, Chairman and CEO of The Coca-Cola Company, speaks during an interview with Reuters in Lagos, Nigeria, November 5, 2019.
Temilade Adelaja | Reuters
The biggest source of growth for Coca-Cola over the next few years will likely be the sugar-free version of the company’s eponymous soda.
“In fact, the best growth engine in 21 and probably for the next few years will probably be Coke Zero Sugar,” Coke CEO James Quincey said in an interview that aired Friday on CNBC’s “Closing Bell”.
The drink was launched nationwide in 2017 as an updated version of Coke Zero, which was 12 at the time. Coke Zero Sugar was supposed to resemble more closely the traditional Coke soda, but still appealed to health-conscious consumers by leaving out the sugar. And the product has paid off for the company, fueling sales growth even during the coronavirus pandemic.
“Coke Zero grew in 2020 thanks to Covid and, in fact, on an absolute basis, is the main growth driver for the business,” Quincey told CNBC’s Sara Eisen.
Quincey pointed out that Coke’s Topo Chico Hard Seltzer and AHA Sparkling Water were new products that were doing well in the early days of their launches.
Other drink launches, such as Coke Energy, have been challenged by the current crisis. Executives told analysts during the company’s earnings call on Feb. 10 that they would double down on Coke Energy this year after lockdowns hampered the initial launch early last year.
Coca-Cola shares have fallen 16% in the past 12 months, giving it a market value of $ 215 billion.
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