Posts Tagged ‘coke’

Why can’t Coca-Cola avoid the sugar tax?

Monday, August 27th, 2018 | Distractions

Soft drink brands across the board have been reducing the amount of sugar in their drinks in order to avoid the sugar tax. But one brand remains unchanged. To understand why we need to do a short history lesson.

Earlier this year the UK introduced a new tax on sugary drinks. Any drink with more than 5g of added sugar per 100ml is now subject to a levy. Hence why the prices of many soft drinks have gone up, including having to pay more than the set-meal price at McDonald’s and meal-deal sandwich outlets.

To prepare for this, many companies have reduced the sugar content in their drinks to avoid the tax. Fanta, Ribena, Iron Bru and Lucozade have all made changes to this effect. But one brand hasn’t changed: Coca-Cola Classic.

Why is this? Is it because the Coca-Cola Company doesn’t want to? Certainly not. Fanta is a Coca-Cola Company brand and they have changed the recipe for that. But Original Coke remains unchanged because simply put, they can’t change it.

The Pepsi Challenge

The story starts in 1975. Coca-Cola is the leading carbonated soft drink in the world. But a competitor, PepsiCo, is about to strike gold with a marketing campaign.

They presented consumers with two white cups filled with cola. One had Pepsi in and one had Coca-Cola in. Each person drank both cups and selected the one they preferred. It was a blind taste test. And, as it turned out, when you don’t know what you are drinking, most people prefer Pepsi.

PepsiCo realised they were onto a winner and began to shout to the high heavens about it. They ran TV commercials showing it happening. And their sales went through the roof. Within five years, they were within striking distance of becoming the number one soft drink.

Coca-Cola responds

The Coca-Cola Company’s own tests confirmed what the Pepsi Challenge suggested: that people preferred the taste of Pepsi. So, they began working on a new version of Coke that would cater to people’s tastes.

In April 1985, New Coke was launched.

This wasn’t some small viral campaign they hoped would later catch on. Coca-Cola went big. They stopped making their original formula entirely. They poured money into advertising: so much money that by the end of the campaign, more Americans knew about New Coke than knew who the US President was.

Backlash

Despite some initial success, many of Coca-Cola’s customers rebelled.

They didn’t just stop buying it. They sent letters. And made phone calls. And founded campaigning organisations like the Old Cola Drinkers of America. They tracked down companies that had stockpiles of original Coke and started making long-distance road trips to get their hands on some. They even filed a lawsuit against the company in an attempt to get them to change it back.

Eventually, Coca-Cola was forced to cave in. 78 days after launching New Coke, they announced that the original formula was going back into production under the name of Coca-Cola Classic. Sales skyrocketed while New Coke was re-named to Coke II and the finally killed off altogether.

It remains one of the most eminent cautionary tales in marketing.

And that’s why they can’t change it

The Coca-Cola Company will not change the sugar content of their Classic drink because they can’t risk it. After one of the biggest disasters in marketing history, it’s just too risky for them to alter it. So risky that they would rather risk losing market share because of a sugar levy that only hits their drink and not that of the competition than they would risk tweaking the formula and possibly another backlash.

More misleading Coke bottles

Tuesday, May 22nd, 2018 | Life

Earlier this month I wrote about how Tesco had begun selling bottles of Coca-Cola that were smaller than usual without making this clear. I went back the next week, and things got worse.

This time, I bought what I thought was a bottle of Coca-Cola peach. I grabbed it because I couldn’t see any 500ml bottles of regular coke, and so I decided this was the next best option.

Only after I had left the shop, I noticed that it was, in fact, a sugar-free version. It does say that on the bottle. But it’s in pretty small letters. And, more importantly, it’s on a red label. Traditionally, all sugar versions have been in red and sugar-free versions have been black. You can see a coke zero sugar bottle in the background on a black label.

Luckily I noticed before I had opened it and returned it for a refund. But I don’t understand Coca-Cola and Tesco are using all of these misleading tactics.

Coke shrinkage

Wednesday, May 2nd, 2018 | Life

I support the sugar tax. I think it will prove an effective deterrent to sugary drinks, just as adding a 5p fee to plastic bags has massively reduced their usage. But some retailers do not seem to have handled it very well.

Take a look at this, for example:

On the right is a standard 500ml Coke bottle. On the left is a 375ml that seems to be shaped to look like a 500ml bottle. 375ml is not much bigger than a can (330ml).

When I went to Tesco, I grabbed what I thought was a 500ml bottle. It was only later I realised it was only 375ml. I felt scammed. I didn’t see any indicating it was a smaller bottle, something which you would expect ethically they should point out to customers.

I spoke to Tesco about it and they said they were sorry but didn’t promise to do anything about it.

Elina informs me that Marks & Spencer are still offering the 500ml bottles as part of their meal deal.

Cadbury and their nutritional information

Tuesday, July 19th, 2016 | Thoughts

wispa-bar

This is a Cadbury Wispa chocolate bar. I am annoyed by it. Here is why…

I buy chocolate bars in multipacks. It makes sense because it is cheaper than buying them individually and I have to go shopping less often. I have recently written about my diet, which involves tracking the number of kcals I am eating.

They’re smaller

I took a look at how the multipacks were advertised on Sainsbury’s website. They’re not actually called “multipacks” but labelled “4×30.5g”. I suspect the reason behind this is because the term multipack could be seen as misleading: given you are not actually getting a multipack of normal Wispa bars. The ones you get in the multipack are smaller.

wispa-sizes

This is a side by side comparison of a regular bar and the one I got from my multipack.

They say multipack on

I have long found the habit of companies printing on things like “multipack bar – not for resale” annoying. The reason they do this is to try and stop stores from buying the multipacks, splitting them up and selling them on separately.

However, they can’t just ban it, because splitting a multipack and selling the individual items is perfectly legal. So they write these messages on instead.

In my opinion, this is an unfair business practice. I often see multipack items for sale, but never in a big-business context. It is family-run corner shops, small sandwich merchants and refreshment stalls at community events. Such practices disproportionally affect small businesses.

No nutritional information

As if this tactic is not bad enough, Cadbury also removes all of the nutritional information and ingredients list from their multipack bars. You are legally required to list the ingredients on your products, and the food industry has agreed to provide nutritional information too, but Cadbury provides neither.

back-of-packs

The way Cadbury get round this is to insist that the ingredients and nutritional information is available on the outer wrapper of the multipack. However, this is completely at odds with the way most people use multipacks. When I buy one, I open the packet, tip the bars out into my bag of goodies, and throw the multipack wrapper away.

The alternative is to keep a stash of multipack wrappers hanging around in case I want to check nutritional information. Perhaps you could argue that it is merely industry standard to do this and that everyone does it. But you would be wrong…

lilt-can

Here is a can of Lilt Zero, a product of The Coca-Cola Company. It is a multipack can as you can see from the back bar with white writing and the top. And yet somehow, Coke remembered to put all of their ingredients and nutritional information on the can.

Summary

I will not claim to know the mind of Cadbury. However, if I was to guess at their thinking, I would say that in my opinion they choose not to include ingredients or nutritional information on their bars in an attempt to prevent local shops exercising their legal right to break multipack products, even though this means impacting the consumer and not providing the vital information that should be there.

I see no reason why this information cannot be included on each individual bar.

Nor do I believe that enough is done to make it clear to consumers that the bars they sell in the multipacks are noticeably smaller than the bars you would typically buy individually.