James Quincey, Chairman and CEO of The Coca-Cola Company speaks during an interview with Reuters in Lagos, Nigeria, November 5, 2019.
Temilade Adelaja | Reuters
The biggest source of growth for Coca-Cola in the coming years will likely be the sugar-free version of the company’s soft drink.
“Actually, Coca-Cola Zero Sugar will be the best growth engine in ’21 and probably for years to come,” said James Quincey, Coca-Cola’s CEO, in an interview aired Friday on CNBC’s “Closing Bell”.
The drink launched nationwide in 2017 as an updated version of Coke Zero, which was 12 years old at the time. Coke Zero Sugar was intended to be more like the traditional cola soda, yet appeal to health-conscious consumers by omitting the sugar. And the product has paid off for the company, fueling sales growth even during the coronavirus pandemic.
“Coke Zero grew through Covid in 2020 and is, on an absolute basis, actually, the biggest growth engine for the company,” Quincey told CNBC’s Sara Eisen.
Quincey pointed to Coke’s Topo Chico Hard Seltzer and AHA Sparkling Water as new products that are doing well in the early days of their launch.
Other beverage launches, such as Coke Energy, are being challenged by the current crisis. Executives told analysts on the company’s Feb. 10 earnings call that they would double down on Coke Energy this year after lockdowns negatively impacted the initial launch early last year.
Coke stock is down 16% in the past 12 months, putting it at a market value of $ 215 billion.