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Coca-Cola is Cutting 200 of It's Master Brands

Coca-Cola plans to slash the number of master brands by 50% to about 200.The new decision is following of its third-quarter revenue fell 9% as the coronavirus pandemic weighed on demand for fountain soft drinks, Powerade and Dasani.

It is slimming its portfolio, cutting drinks like Tab that haven’t sold well and don’t have much opportunity for growth. The beverage giant had already announced that it will discontinue Zico and Odwalla too.

The brand found that the net sales dropped 9% to $8.65 billion, beating expectations of $8.36 billion. Organic sales fell 6%, and unit case volume, which helps measure demand without the impact of pricing or foreign currency, declined 4%.

“The pandemic helped us realize we could be bolder in our efforts,” Quincey said.

Reducing the portfolio will allow Coca-Cola to focus on its most profitable offerings, the company explained. Those include its core products like Coca-Cola Zero Sugar as well as brands that fit into trendy new categories, like Topo Chico hard seltzer and AHA, a caffeinated seltzer the company launched last year.

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