James Quincey, President and CEO of The Coca-Cola Company, speaks during an interview with Reuters in Lagos, Nigeria, November 5, 2019.
Temilade Adelaja | Reuters
Coca-Cola’s biggest source of growth in the coming years is likely to be the sugar-free version of the company’s eponymous soft drink.
“In fact, the best driver of growth in 21 and probably for the few years is likely to be Coca Zero Sugar,” said Coca-Cola CEO James Quincey in an interview that aired on Friday at “Closing Bell” CNBC.
The drink was launched nationally in 2017 as an updated version of Coca Zero, which was already 12 years old. Coca Zero Açúcar was created to resemble more traditional Coca soda, but still appeal to health-conscious consumers, leaving out sugar. And the product paid off for the company, fueling sales growth even during the coronavirus pandemic.
“Coca Zero grew in 2020 through Covid and, in fact, on an absolute basis, is the company’s biggest growth driver,” Quincey told CNBC’s Sara Eisen.
Quincey pointed out Coca-Cola’s Topo Chico Hard Seltzer and AHA sparkling water as new products that are doing well in the early days of their launches.
Other beverage launches, such as Coca-Cola, have been challenged by the current crisis. Executives told analysts on the February 10 conference call about the company’s profits that would double Coca-Cola’s sales this year, after the blockages affected the initial launch early last year.
Coca’s shares have fallen 16% in the past 12 months, totaling a market value of $ 215 billion.