- As the IC refreshes its brand, Coca-Cola provides a reassuring lesson
- The global beverage giant is the world’s most valuable non-tech brand
Santa wears a red suit thanks to Coca-Cola (US: KO) advertisements. So what, if it’s an urban myth? The fact that the beloved bringer of presents is so easily associated with Coca-Cola is testament to the outstanding success of its brand. Swedish artist Haddon Sundblom started drawing Coke’s Santa image in the 1930s, finding inspiration from Clement Clark Moore's 1822 poem: “'Twas the Night Before Christmas". The image has since played a regular role in Coca-Cola’s eagerly awaited Christmas campaigns.
This year, acclaimed director Taika Waititi produced the Christmas advert, which combines a Hollywood epic with the heart-wrenching modesty of the John Lewis boy who could not wait to give his presents. Coke’s story of a father who travels across hostile landscapes to deliver his daughter’s letter to Santa initially causes you scoff at the ridiculous extravagance of the production, only to unexpectedly reduce you to a blubbering state on discovering that the girl had asked Santa to “bring Daddy home”.
This is not the first time Coca-Cola has nailed its marketing. In 1982, amid a burgeoning health boom, management introduced Coca-Cola’s iconic silver sister: Diet Coke. With initial sales proving popular among women, the company was quick to release the ‘Diet Coke Break’ advert featuring a shirtless workman, a lot of ogling office women and the suggestive lyrics of Etta James’ “I just want to make love to you”.
As health-conscious attitudes towards sugary drinks intensified, Coca-Cola embraced a broader, less gendered consumer base with the introduction of Coke Zero in 2005. At first Coke Zero distinguished itself from Diet Coke’s shiny silver with white packaging. It was only after Coca-Cola New Zealand launched a black can inspired by its rugby team, that black became the product’s universal image. The brand has since shamelessly pursued masculine stereotypes to great success. The ‘Share a Coke with’ campaign of 2011 saw the Coke Zero logo replaced with terms like: Wingman, Gamer, Bros and Grillmaster – after all, nothing speaks macho more than a BBQ!
But 2013 saw the company’s stream of success stumble. The introduction of a lighter, low calorie recipe, to coincide with the introduction of the sugar tax in the UK and US, was widely panned. Consumers deemed it a pointless “half-way house” between the original and sugar-free versions, while the new green design was accused of “greenwashing” and inappropriately using the world’s self-destruction as a marketing tool. Honestly, reinforcing toxic masculinity is one thing, but attempting to promote sustainability is really going too far!
With the brand and the share price waning, the company was in desperate need of salvation. Enter James Quincey who has led Coca-Cola from strength to strength with an impressive marketing push and restoration of the original recipe. In 2017, he rebranded Coke Zero as Coca-Cola Zero Sugar which was marketed with the promise that it tastes more like the original drink. The change came alongside Mr Quincey’s plans to expand its portfolio to include “new beverages with enhanced benefits of nutrition and hydration,” sold under the tagline “Beverages for Life”.
In 2018, the company launched a new diet range in taller slimmer cans: a clever bit of design that suggests the drinker will undergo a similar physical transformation should they make the switch. The rebrand was an instant hit. In its first week, UK sales of Diet Coke exceeded sales of classic Coca-Cola for the first time ever. The introduction of diet versions of the ‘Feisty Cherry’ and ‘Twisted Mango’ flavours have proven popular among health conscious millennials. And the health quest does not stop there. After a brief spat with Monster Beverages (which Coca-Cola has a 16.7 per cent stake in), the company launched its energy drink in January 2020 to capitalise on a fast growing market – energy drink sales are expected to grow to $86bn by 2026.
Currently valued at $87bn, Coca-Cola is the most valuable non-tech brand in the world. The iconic drink is sold in every country in the world (excluding North Korea) and the company currently accounts for an eighth of the world’s beverage supply. With an average annual marketing spend of $4bn, it’s clear Mr Quincey and his team are aiming for more. That’s an impressive position for a company whose brand dates back to 1885 and was created by accident. When Dr John Pemberton was mixing coca leaves with cola nuts he was attempting to develop a natural cure for headaches. It was only when a lab assistant accidently mixed the concoction with carbonated water that the pharmacist made one of the most shrewd and pivotal business moves in history: rebranding.
