Orange Vanilla and New Coke are giving Coca-Cola a boost

Coca-Cola has been trying to get customers excited about Coke with new...

Posted: Jul 23, 2019 10:33 AM
Updated: Jul 23, 2019 4:30 PM

Coca-Cola has been trying to get customers excited about Coke with new flavors and products. It's working.

The beverage company said on Tuesday that net revenues grew 6% to $10 billion in the second quarter, attributing the growth in part to innovations within the classic Coke brand. Sparkling soft drinks grew 3% for the quarter, the company said, driven by 4% growth in Coke.

Shares of the company rose nearly 3% on the results.

Although Coca-Cola strives to be a 'total beverage company' by acquiring juice and seltzer brands and coming up with new products within those categories, it also needs to make sure that people don't abandon its most recognizable product.

To do that, it has launched new flavors, like Orange Vanilla Coke, as well as new platforms, like Coca-Cola with Coffee and a Coca-Cola energy drink (those two are available only internationally, for now).

Coca-Cola said its energy drink, which is sold in 14 countries, is showing early signs of success. By the end of the year, Coca-Cola plans to make it available in 20 markets.

In addition to the new lines, stunts also raise interest in the signature product. When Disney opened its new 'Star Wars' theme park, it sold custom bottles of Coca-Cola, Diet Coke, Sprite and Dasani that looked like Droids. And the company brought back New Coke for a limited time as a promotion for Netflix's 'Stranger Things.'

Low-sugar Coke products are also performing well. Coke Zero Sugar, a consistent sales driver, grew double-digits by volume for the seventh quarter. The company also unveiled a sleek new look and trendy flavors within Diet Coke in 2018.

Coca-Cola is also making progress with its line of ready-to-drink coffees. The beverage company completed its acquisition of the UK coffee chain Costa earlier this year, and has since launched a canned coffee line under the Costa brand in Great Britain.

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