77. The Debacle of Coca-Cola’s New Formula
Year: 1985 – 2002
Location: Atlanta, Georgia (Coca-Cola HQ)
Company: The Coca-Cola Company
Estimated Damage Value: $34 million*
In 1985, The Coca-Cola Company, based in Atlanta, Georgia, launched New Coke, aiming to outdo Pepsi’s sweeter taste. This $34 million misstep highlights the risks of altering a beloved brand to stay competitive.
Despite initial focus group resistance, especially from Southerners, Coca-Cola replaced its classic formula with New Coke, sparking widespread backlash. A die-hard fan, Gay Mullins, even initiated a class-action lawsuit and spent $120,000 on a campaign to revert to the original.