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Coca-Cola (NYSE:KO) announced early in the summer restructuring plans to cut down its business units to focus on the profitable portfolio of products with the latest being the Zico coconut water line.

Coca-Cola discontinues Zico coconut water

Zico joins Odwalla in the list of Coke’s beverage lines, and the popular brand will leave shelves by the end of this year. This is part of the company’s steps in reducing its almost 500 partially or fully owned product lines. The decision to cut down its expansive product lines has resulted in thousands of job losses in many countries and placed almost half of the company’s less popular beverage lines on the lease.

The company acquired Zico in 2013 because the drink was high in demand as an alternative to vitamin water as well as other hydration benefits touting drinks. However, in the past decade popularity of the coconut beverage has declined, and Zico has failed to match competitor brands like Vita Coco. When the soda company chose to bench the production of some products to ease pressure on its supply chain at the height of the pandemic, the coconut water was one of them.

Coca-Cola to focus on bestselling brands

In a statement, a company spokesperson indicated that they didn’t make the decision lightly, and it comes when the company is focused on delivering in its consumer needs and wants. This comes as Coca-Cola continues scaling growth across its beverage portfolio. The company is doubling down on efforts to streamline the supply chain and focus on bestselling brands.

Besides Zico and Odwalla, the company targets other “zombie brands” to help cut costs. The company had discontinued the Odwalla smoothies because of increased competition in the smoothie segment and a decline in sales. Other Coke brands that you may not find on shelves soon include Hubert’s lemonade, which the company will stop selling but can be served in fountain machines. Coke Life, Diet Coke Feisty Cherry, Delaware Punch, and Nothern Neck Ginger Ale could also be in danger. 

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