Coca-Cola Turns to Smaller Sizes to Boost Soda Sales

The company reported that its 7.5-ounce cans of Coke have been flying off the shelves.

February 21, 2018

ATLANTA – To lift sagging soda sales, Coca-Cola is betting on smaller sizes, the Wall Street Journal reports. In a recent investor call, CEO James Quincey pointed to smaller versions, including Coke’s 7.5-ounce can, as bright spots in otherwise dismal sales of carbonated beverages. Quincey said the smaller packages will be a cornerstone in its plans to raise organic revenue by 4% in 2018.

Analysts countered that soda volumes have been in freefall for several years, as consumers favor bottled waters and teas. Analysts predict industry sales to increase around 2% to 3% in 2018. However, Quincey pointed to mini cans and other small packages as accounting for 10% to 20% of Coke sales by volumes, with that number expected to go up. “It’s an ongoing evolution because in the end you still have to engage with consumers on why it’s an interesting choice for them,” he said.

Coke also hopes its new Diet Coke flavors in revamped packaging will help to reverse the downward trend on its soda sales. “I’m not sure just the flavors and the packages would get us there, but it’s certainly going to be a next step in the right direction,” Quincey said.

Meanwhile, Coke continues to innovate with its sodas, recently expanding a test of its Arctic Coke machines that turn bottled carbonated beverages into slush drinks.