James Quincey, president and CEO of The Coca-Cola Company, speaks during an interview with Reuters in Lagos, Nigeria, on November 5, 2019.
Temilade Adelaja | Reuters
Coca-Cola’s biggest source of growth over the next few years will probably be the sugar-free version of the company’s eponymous soda.
“Actually, the best growth engine of the 21st and probably for the next few years will probably be Coke Zero Sugar,” James Quincey, CEO of Coke, said in an interview aired Friday on CNBC’s “Closing Bell”.
The drink was launched nationwide in 2017 as an updated version of Coke Zero, which was 12 years old at the time. Coke Zero Sugar was supposed to be more like traditional Coca-Cola soda, but it would still like health-conscious consumers to set aside sugar. And the product has borne fruit for the company, boosting sales growth even during the coronavirus pandemic.
“Coke Zero grew in 2020 through Covid and, in fact, absolutely, it’s the company’s main growth engine,” Quincey told CNBC’s Sara Eisen.
Quincey pointed to Topo Chico Hard Seltzer by Coke and AHA sparkling water as new products that went well for them in the early days of their release.
Other beverage launches, such as Coke Energy, have been challenged by the current crisis. Executives told analysts of the company’s Feb. 10 earnings call that they would double Coke Energy this year after the blockades affected the initial launch early last year.
Coca-Cola shares have fallen 16% in the last twelve months, giving it a market value of $ 215 billion.