Introduction

Coca-Cola, a brand synonymous with the traditional cola taste, decided to experiment with a new flavor in 2024—a raspberry-infused “Spiced” soda. However, the venture was short-lived, and Coca-Cola quickly announced its discontinuation. Industry analysts like Matthew Herbert, co-CEO of the Tracksuit platform, suggest that Coca-Cola’s strength lies not in innovation but in consumer trust and nostalgia. This article delves into the reasons behind the failure of “Spiced,” Coca-Cola’s challenge with innovation, and strategies traditional brands can adopt to stay relevant in a market dominated by health-focused newcomers.

Coca-Cola’s “Spiced” Experiment and Its Swift End

The new Coca-Cola “Spiced” flavor was developed in just seven weeks—a rapid turnaround even for an established brand. Released with the hope of attracting adventurous consumers, the flavor failed to capture the same enthusiasm as Coca-Cola’s classic offerings. According to Herbert, Coca-Cola’s downfall was a mismatch between consumer expectations and brand promise. Customers, familiar with the reliability and traditional taste of Coca-Cola, found the flavor unfamiliar and confusing. Within months, Coca-Cola made the call to discontinue “Spiced,” promising a new flavor for 2025, hinting at the brand’s ongoing desire to diversify its product lineup despite past missteps.

The Dangers of Innovation Without Consumer Alignment

For Coca-Cola, branching into new flavors comes with risk, as the brand’s appeal lies largely in its consistency and nostalgia. As Herbert noted in an interview with The Food Institute, Coca-Cola is recognized for its reliability, not for cutting-edge innovations. Unlike brands like Olipop that actively target younger, health-conscious audiences with unique, functional flavors, Coca-Cola’s customer base consists of individuals who seek familiar, classic soda flavors.

Innovation is indeed crucial in a competitive market, but it must resonate with the brand’s core values and consumer expectations. Herbert points out that Coca-Cola’s “Spiced” soda may have represented a break from what consumers associate with the brand—reliable, classic refreshment. By ignoring these associations, Coca-Cola may have inadvertently distanced its customers, who had a strong preference for the familiar Coca-Cola flavors they’ve trusted for decades.

Learning from Dr Pepper: A Study in Brand Reinvention

While Coca-Cola struggled with “Spiced,” other legacy brands, such as Dr Pepper, have managed to innovate without losing their core identity. Dr Pepper, founded only a year before Coca-Cola, recently surpassed Pepsi to become the second-most popular soda in the U.S. Dr Pepper achieved this feat by preserving its unique taste and leveraging its long-standing brand identity through new media channels like TikTok, which appeal to younger consumers.

The success of Dr Pepper demonstrates the power of knowing a brand’s unique selling points and remaining relevant to new generations. Unlike Coca-Cola’s abrupt shift with “Spiced,” Dr Pepper has leaned into its brand’s distinctive qualities while exploring new marketing channels and formats that reach diverse audiences.

Media Consumption Shifts Among Soda Drinkers

Data from Tracksuit shows that media consumption among soda consumers is increasingly digital, highlighting the importance of platform-specific marketing strategies. From April to October 2024, popular media channels among soft drink consumers included:

• Facebook: 65%
• YouTube: 63%
• Paid streaming services: 59%
• TV: 57%
• Instagram: 45%
• Radio: 38%
• TikTok: 32%

For consumers aged 18 to 24, YouTube, Instagram, and TikTok were especially prominent, underscoring the importance of social media platforms for engaging younger demographics.

How Traditional Brands Can Stay Relevant

To maintain relevance, Coca-Cola and other established brands must walk the line between tradition and innovation. While Coca-Cola has a history of iconic flavors, younger consumers are looking for novelty and unique ingredients, often gravitating toward brands that embrace health-focused and functional beverages like Olipop. Herbert suggests that Coca-Cola can remain competitive by emphasizing the brand’s rich history while subtly integrating marketing strategies that appeal to younger audiences, especially on platforms like TikTok and Instagram.

Key Strategies for Traditional Brands to Appeal to Modern Consumers

1. Authenticity and Transparency: Today’s consumers, particularly Millennials and Gen Z, value transparency and honesty. Brands that openly communicate their history and values while connecting these with their products resonate more with younger audiences.
2. Leveraging Nostalgia: Coca-Cola’s brand value lies heavily in nostalgia, a powerful marketing tool that can be wielded effectively. Limited-edition packaging, retro-themed advertising, and collaborations that emphasize the brand’s historical appeal could allow Coca-Cola to remind consumers why they love the brand while subtly introducing them to new products.
3. Focused Innovation: Instead of entirely new flavors that disrupt customer expectations, Coca-Cola could consider offering slight twists on its classics or “throwback” flavors that have previously been discontinued. This approach allows consumers to experience something new without sacrificing the brand’s core identity.
4. Platform-Specific Advertising: Marketing strategies need to align with where consumers spend their time. Younger audiences are now more engaged on YouTube, Instagram, and TikTok than on traditional media channels. This shift requires brands to create content that appeals to shorter attention spans and focuses on visual storytelling, possibly through influencers or user-generated content.

Coca-Cola’s Future: Can Classic Brands Innovate Successfully?

Coca-Cola’s loyal consumer base has sustained its market dominance for over a century, yet the market is evolving quickly. Health-conscious brands like Olipop have tapped into the demand for functional and low-sugar alternatives, presenting a direct challenge to traditional sodas. Despite the failure of “Spiced,” Coca-Cola is committed to innovation, as evidenced by its promise to unveil a new flavor in 2025.

To succeed, Coca-Cola will need to understand the lessons from its “Spiced” experience: innovation must align with brand identity, and consumer expectations are rooted in the brand’s legacy of reliability and nostalgia. While trying new flavors could attract fresh audiences, it’s essential for Coca-Cola to retain its distinctive image as a “trusted classic” rather than an experimental newcomer.

Conclusion: Balancing Tradition and Innovation

Coca-Cola’s attempt with “Spiced” was a misstep, but the company’s willingness to explore new possibilities remains essential for its survival. As consumer preferences lean towards health-conscious options and unique flavors, Coca-Cola must innovate thoughtfully, without alienating its core audience. Embracing its historical identity, leveraging nostalgia, and embracing authenticity in its storytelling could help Coca-Cola continue to dominate while adapting to shifting trends.