James Quincey, Chairman and CEO of The Coca-Cola Company, speaks during an interview with Reuters in Lagos, Nigeria, on November 5, 2019.
Temilade Adelaja | Reuters
The biggest source of growth for Coca-Cola over the next few years will likely be the zero-sugar version of the namesake soda.
“Actually, the best growth operator in ’21 and probably for a few years is going to be Coke Zero Sugar,” James Quincey, Coke’s CEO, said in an interview aired on CNBC’s “Closing Bell” on Friday.
The drink was introduced nationwide in 2017 as an updated version of Coke Zero, which was 12 years old at the time. Coke Zero Sugar was meant to look more like the traditional cola soda, yet appeal to health-conscious consumers by omitting the sugar. And the product has borne fruit for the company, which has boosted sales growth even during the coronavirus pandemic.
“Coke Zero grew by Covid in 2020, and is actually the absolute driving force for the company,” Quincey told Sara Eisen, CNBC.
Quincey points to Coke’s Topo Chico Hard Seltzer and AHA sparkling water as new products that are doing well in the early days of their launch.
Other beverage launches, such as Coke Energy, have been challenged by the current crisis. Managers told analysts on the company’s revenue on February 10 that they would double Coke Energy this year after being hit for the first time last year.
Coke shares have fallen 16% over the past 12 months, giving them a market value of $ 215 billion.