James Quincey, President and CEO of Coca-Cola, speaks during a Reuters interview in Lagos, Nigeria, November 5, 2019.
Temilade Adelaja | Reuters
The biggest source of growth for Coca-Cola in the next few years will probably be the sugar-free version of the company’s eponymous soda.
“In fact, the best growth factor in ’21 and probably for a few years will probably be Coke Zero Sugar,” Coke CEO James Quincey said in an interview with CNBC’s Closing Bell on Friday.
The drink was launched nationwide in 2017 as an updated version of Coke Zero, which was 12 at the time. Coke Zero Sugar was meant to look more like traditional Coca-Cola soda, but still attracts health-conscious consumers, leaving out sugar. And the product paid off for the company, fueling sales growth even during the coronavirus pandemic.
“Coke Zero grew in 2020 through Covid and, in fact, on an absolute basis, is the biggest growth engine for the company,” Quincey told CNBC’s Sara Eisen.
Quincey pointed to Topo Chico Hard Seltzer and Coke’s AHA sparkling water as new products that do well in the early days of their launches.
Other beverage launches, such as Coke Energy, have been caused by the current crisis. Executives told analysts in the company’s February 10 earnings call that they will double to Coke Energy this year after the blockages affected the initial launch early last year.
Coca-Cola shares have fallen 16 percent in the past 12 months, giving it a market value of $ 215 billion.