Coca-Cola is discontinuing Zico, its coconut water brand
Posted October 5, 2020 9:55 a.m. EDT
CNN — Zico is soon joining Odwalla in the beverage graveyard, as Coca-Cola announced plans to discontinue production of the coconut water in the coming months.
The shuttering of Zico is part of Coca-Cola's broader plans to slim down its sprawling beverage lineup. "This decision was not made lightly and comes at a time when we are focused on delivering on our consumers' wants and needs while driving scaled growth across a total beverage portfolio," a spokesperson said in a statement.
Coca-Cola bought Zico in 2013 to bolster its lineup beyond colas, but it never caught on the way rivals have. Vita Coco, for example, has seen its sales spike during the pandemic.
During the past few months, Coca-Cola has streamlined its product offerings and focused on its best-selling brands to help ease the strain on supply chains.
Coca-Cola is now doubling down on those efforts. In July, the company announced it would discontinue juice and smoothie brand Odwalla. Soon after, Coca-Cola announced it would dump other "zombie brands," or those that aren't growing, to help cut costs.
Brands in danger now include Diet Coke Feisty Cherry, Coke Life, Northern Neck Ginger Ale and Delaware Punch, which are all "under review," a spokesperson said Monday.
This isn't Coca-Cola's first zombie hunt. During the past two years, the company has been "identifying and killing zombie" brands, products, flavors and packaging that were not delivering performing as well as other products. In the first half of last year, Coca-Cola eliminated more than 275 products.
The Atlanta-based company also recently announced that it's cutting thousands of jobs and reducing its number of business units as it faces declining beverage sales in the pandemic.
--CNN Business' Alicia Wallace contributed to this report.