Coca-Cola Looks to Optimize Efficiency by Axing “Zombie Brands”

During an investor call today, Coca-Cola (NYSE: KO) Chief Executive Officer James Quincey outlined the soft drink giant's strategic plan to cut many of its brands, ridding itself of "zombie" product lines while boosting support for successful brands. During the call, Quincey noted that out of the company's 400 brands, 200 generate 98% of revenues, while the other 200 manage to eke out just 2%. Quincey says the company previously failed to eliminate brands even if they failed to generate rapid growth, noting, "We have not been assertive enough and directive enough at weeding out the explorers that have not worked so we can redirect resources onto explorers and challengers that have the most opportunity."