40 years ago today, Coca-Cola introduced New Coke. The company had been losing market share to rival Pepsi and other competing diet and non-cola soft drinks. After World War II, Coca-Cola had 60% of the market share for cola, but by 1983 it had dropped to below 24%. So senior executives at Coca-Cola commissioned a secret project to create a new flavor for Coke. It was code named “Project Kansas”, after a photo of Kansas journalist William Allen White drinking a Coke – it had been used in advertisements and hung on several executives’ walls.
In taste tests, surveys, and focus groups, the new sweeter Coke overwhelmingly beat both regular Coke and Pepsi. New Coke was introduced on April 23, 1985, and production of the original formula ended later that week. Though many loyal Coca-Cola drinkers accepted the new product, many more resented the change. The company received over 40,000 angry calls and letters. And their hotline received over 1,500 calls a day (normally it was around 400 a day). A psychiatrist hired by Coke to listen in on the calls told executives that many people sounded like they were discussing the death of a family member.
It only took 79 days for the original formula Coke to be brought back to the market. Rebranded as Coca-Cola classic, it quickly regained its status as the dominant cola. Just 6 months after the introduction of New Coke, Coca-Cola sales had increased at twice the rate of Pepsi. This led to speculation that New Coke had been a ploy all along to stimulate sales of the original Coke. The company vehemently denied this, but the story remains a cautionary tale against tampering with an already established brand.
New Coke made a comeback in 2019. The product was reintroduced as part of the promotion for the third series of Stranger Things. 500,000 cans of New Coke were produced, and mostly sold online. The demand was so high that the volume of orders crashed the Coca-Cola website. New Coke received much friendlier reviews this time around.