The New Coke Failure & the Reintroduction of Coca-Cola Classic

History Tools ^ | 7/3/25 | History Tools

[DallasBiff]

In the mid-1980s, the "Cola Wars" were raging, with Coca-Cola and Pepsi engaged in a fierce battle for dominance in the lucrative soft drink market. As the iconic American brand that had reigned supreme for nearly a century, Coca-Cola found itself in a precarious position, facing a relentless challenge from its long-time rival.

The data paints a clear picture of the competitive landscape. By 1985, Pepsi had captured 58.4% of supermarket soda sales, while Coca-Cola‘s share had dwindled to just 41.6%. [1] This shift was particularly concerning for Coca-Cola, as supermarkets were a crucial battleground in the Cola Wars, with consumers able to directly compare the prices and taste profiles of the two leading brands.

Coca-Cola‘s leadership, led by CEO Roberto Goizueta, recognized the gravity of the situation. Market research conducted by the company revealed a troubling trend – in blind taste tests, a significant majority of consumers preferred Pepsi‘s sweeter flavor over the classic Coca-Cola recipe. [2] The quarterly sales reports only reinforced this pattern, with Pepsi‘s steady advance cutting into Coca-Cola‘s once-dominant position

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TOPICS: Business/Economy; History
KEYWORDS: blunders; crackerbarrel; newcoke

[minnesota_bound]

The article should be what happened to Pepsi.

Search: In 2023 Coke is the leader by a comfortable margin. Last year, it captured 19.2% of the soda market in the United States by volume, Beverage Digest’s data shows. Dr Pepper and Pepsi both had 8.3%, with Dr Pepper technically ahead. After that came other brands owned by Coca-Cola: Sprite came in at 8.1% and Diet Coke at 7.8%.