Coca-Cola to Discontinue Juice Brand Odwalla

Coca-Cola is closing its juice and fruit smoothie model Odwalla, citing transforming shopper tastes.

In a statement to CNN Enterprise, the president of Coca-Cola’s Minute Maid company unit, John Hackett, mentioned “every effort” was manufactured to assistance continued manufacturing. “This selection was not manufactured frivolously,” he mentioned.

The closure will be concluded by the end of the month. It will also entail 300 work cuts.

A spokesperson for the enterprise mentioned the shift was not immediately related to the COVID-19 disaster but that wellness-mindful shoppers had been a lot less interested in smoothies than they utilized to be.

Coca-Cola “couldn’t make it work, we couldn’t figure out the cost-success of it,” the spokesperson mentioned. “It actually is the end result of shoppers transforming what they want so quickly. By freeing up those assets, we can reinvest those expenses in what shoppers want now.”

Coca-Cola is also discontinuing its fleet of 230 refrigerated delivery vehicles utilized by Odwalla as nicely as its Fairlife and Merely makes, whose distribution will be redirected.

Coca-Cola obtained Odwalla in Oct 2001 for $181 million as portion of a drive into the non-carbonated quality consume current market. Having said that, gross sales of juice beverages have fallen amid to concerns their sugar content is linked to coronary heart condition and being overweight.

In 2015, Coca-Cola launched new 15.two-ounce bottles manufactured from very clear PET as the level of popularity of cold-pressed beverages was growing. It also presented kombucha mix and zero sugar strains to update the model.

U.S. shoppers drank 5.two gallons of fruit juice for every capita in 2017, the least expensive amount considering the fact that the USDA started recordkeeping in 1970.

“We’re concentrated on maximizing process effectiveness by ruthlessly prioritizing to deliver on main [merchandise] and crucial makes,” main government officer James Quincey mentioned in an earnings connect with in April. “The a lot less complexity there is in [the source chain], the larger the likelihood for accomplishment.”

Coca-Cola, James Quincey, Odwalla

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