Dear “Chief Dodo…” So began one of many irate letters to Roberto Goizueta, the CEO of the Coca-Cola Company. His crime? For the first time in 99 years, Goizueta had changed the formula for Coke.
As Coke, themselves, now say, “To hear some tell it, April 23, 1985, was a day that will live in marketing infamy. On that day, The Coca Cola Company took arguably the biggest risk in consumer goods history, announcing that it was changing the formula for the world's most popular soft drink, and spawning consumer angst the likes of which no business has ever seen.”
So, why take the risk in the first place?
Well, according to History.com, ‘During the early 1980s, Pepsi was gaining ground on Coca-Cola by narrowing the market share gap, partly through the successful “Pepsi Challenge” blind taste tests and the stronger appeal to younger consumers. Pepsi showed that many people actually preferred a sweeter flavour.’
From a purely business perspective, then, changing Coke’s formula seemed to make sense.
And, as Business Insider reports, ‘Initially, the move seemed to have worked. A marketing push led to an increase in sales in key markets and there was not much of a backlash. It didn’t last for long. A piece in Time magazine two months later gives a clue to the mounting dissatisfaction. Time quotes one consumer as saying they “hate the new stuff… it’s too sweet.”’
A PR disaster was brewing. One in which, much like today’s vitriolic social media spats, the most bombastic voices, often prevailed.
‘The big problem for Coca-Cola is that while the critics weren’t in the majority, they were the loudest,’ reports Business Insider. ‘Even in testing…10 and 12 per cent of people felt angry and alienated by the new product and said it might cause them to stop drinking Coke. Their presence in focus groups often skewed results.’
Things soon went from bad to worse. Sales, which usually rose in the summer, began to flatline. Coke’s bottlers threatened legal action. All across the United States, consumers formed campaign groups to demand old Coke’s return.
‘At a press conference on July 11, 1985, just 79 days after the launch of new Coke, the original Coca-Cola formula returned,’ says Business Insider. ‘It was named Coca-Cola Classic. New Coke continued to be advertised and sold.’
But not for long.
Sales of the product slowly dwindled, then, in 2002, it was discontinued. Just like the dodo, New Coke had disappeared.