Molly Fleming wrote an article for Marketing Week titled Coca-Cola to cut ‘zombie brands’ as it looks to ‘weed out’ the poor performers.
« Coca-Cola currently has around 400 master brands but admits that more than half are country brands of little to no scale. They also account for just 2% of the company’s total revenue, with the rest accounting for the remaining 98%. Yet despite their small size, they still require resources, which Coca-Cola believes is pulling time and money away from its bigger, more profitable businesses. »
« This also does not mean Coca-Cola wants to stop innovating or launching new brands. But it will be “streamlining” its innovation pipeline and skewing it towards initiatives that can scale regionally or globally. “It would be a sign of weakness to have no smaller brands in the portfolio because it would mean we are not nurturing the future,” said Quincey. »
« Coca-Cola has adopted a three-tier system for its brands since 2019. These include leaders – its biggest brands; explorers – with which it looks to disrupt markets; and challengers – those that have the ability to grow to become leaders. »