New Coke was a reformulation of the Coca-Cola brand that was introduced by The Coca-Cola Company in 1985. The decision to launch New Coke was driven by the desire to revitalize sales and combat the growing popularity of rival Pepsi.
The development of New Coke involved extensive market research, taste tests, and blind taste panels. The Coca-Cola Company aimed to create a product that would have a sweeter and smoother taste, similar to that of Pepsi, which was gaining market share. New Coke was officially launched on April 23, 1985, with a massive marketing campaign. The original Coca-Cola formula was simultaneously discontinued, causing a significant public reaction.
On the street it was considered a national disaster. New Coke ads onscreen at the Houston Astrodome were booed, and original Coke was hoarded or sold at Prohibition-style prices. In addition, New Coke was dumped publicly into the sewers in Seattle.
Initially, New Coke received positive reviews from taste tests and some consumers. Sales initially spiked as curious customers tried the new product. The success was short-lived as a significant backlash erupted among loyal Coca-Cola drinkers. Many consumers expressed strong dissatisfaction with the change,
feeling a deep emotional attachment to the original formula. The public sentiment was so intense that it became a cultural phenomenon, with widespread protests and petitions to bring back the original Coca-Cola. Pepsi seized the opportunity to capitalize on Coca-Cola’s misstep. They ran ads mocking the change, claiming that they were the choice of a new generation.
The Atlanta Journal-Constitution found a majority of patrons at The Varsity[1], a popular local restaurant in that city, favored the old formula. “Why didn’t they test anybody here?” the co-owner asked
Pepsi’s sales surged during this period. he Coca-Cola Company faced internal dissatisfaction and pressure due to the negative public reaction. The company received thousands of letters and phone calls from upset customers, and even employees voiced their concerns about the decision. In response to the public outcry,
The company received over 40,000 calls and letters expressing anger or disappointment, including one letter, delivered to CEO Roberto Goizueta, addressed to “Chief Dodo, the Coca-Cola Company”. Another letter asked for his autograph, as the signature of “one of the dumbest executives in American business history” would likely become valuable in the future. The company hotline, 1-800-GET-COKE, received over 1,500 calls a day compared to around 400 before the change. A psychiatrist whom Coke had hired to listen in on calls told executives that some people sounded as if they were discussing the death of a family member.
The Coca-Cola Company reintroduced the original formula as Coca-Cola Classic on July 10, 1985. New Coke continued to be sold alongside the classic version for a short period but was eventually phased out. The New Coke fiasco remains a notable case study in marketing and product management.
It highlighted the importance of consumer loyalty and the potential consequences of tampering with iconic brands. The Coca-Cola Company learned valuable lessons from this experience, and it became an enduring example of the impact of consumer sentiment on product success. After consumers berated the company into bringing back their original flavor just months after New Coke’s debut—
test marketing subjects who endorsed it were never told it was going to replace the original—the company tried to rebrand it as Coke II and continued offering it to bottlers until 2002. It may have been in the hope that persistence would pay off: The revised formula allegedly contained fewer ingredients and was cheaper to produce than Coke Classic. If consumers had rallied, the company might have saved over $50 million a year.
Yes, it infuriated the public, cost us a ton of money and lasted for only 77 days before we reintroduced Coca-Cola Classic. Still, New Coke was a success because it revitalized the brand and reattached the public to Coke.
Marketing Vice President Sergio Zyman
If you haven’t already heard, season 3 of Stranger Things was a rabbit hole of 80’s Easter eggs. The series takes place during that decade and the show’s creators try to keep it as true to that time era as possible. Season 3 took place in the summer of 1985 and it wouldn’t really be 1985 if the show hadn’t added in a callback to one of the major events that happened that year: the launching of New Coke, a Coca-Cola soda made with a new formula. You can spot cans of New Coke sprinkled throughout the season, like when Eleven dig ones up out of the trash to see if she can still use her telekinetic powers. In one scene, Mike even asks Lucas how he can drink New Coke, Lucas defending the soda’s new taste.
Footnotes
- The Varsity, located in Atlanta, Georgia, is an iconic fast-food restaurant and one of the largest drive-in restaurants globally. Established in 1928 near the Georgia Institute of Technology, The Varsity has become a cultural landmark known for its classic American fare, particularly its famous hot dogs, burgers, and onion rings. The restaurant’s distinctive ordering style, with carhops and a unique vocabulary like “What’ll ya have?” has contributed to its nostalgic charm. With a rich history and a clientele that includes locals, students, and tourists alike, The Varsity remains a cherished institution in the heart of Atlanta. [Back]
Further Reading
Sources
- “New Coke” https://www.britannica.com/topic/New-Coke
- “Here’s Everything You Need to Know About New Coke from “Stranger Things”” https://www.seventeen.com/celebrity/movies-tv/a28749451/new-coke-stranger-things/
- “New Coke” https://en.wikipedia.org/wiki/New_Coke
- “Here’s What New Coke Tasted Like” https://time.com/3822869/new-coke-history/
- The Varsity. (n.d.). About Us. Retrieved from https://www.thevarsity.com/about
