Over the years, Coca-Cola has noticed a new trend: People aren't drinking as much soda anymore.
For health reasons, this could be a very good thing, but for Coca-Cola, it’s time to invest more in other types of drinks. Business Insider reports that as of April, less than 25% of the company’s global sales are from soda. Sales are now coming in from Coca-Cola’s “still” beverages; their tea, juice and bottled water sales are rapidly growing.
RBC analyst Nik Modi seems to think Starbucks is to blame for the soda-plummet. “Twenty years ago, people used to wake up with a Diet Coke or a Diet Pepsi,” says Modi, according to Business Insider. “At around 2:00, they’d have another and take a break. Walk in front of a Starbucks at 8 a.m. and 2 p.m. and tell me how long the lines are.”
If Starbucks is to blame, then Coca-Cola might be on the right track with adding coffee to their line of beverages. However, they shouldn’t start ignoring the soda market, since climate change is said to be diminishing the availability of coffee. As we reported on Sept. 5, The Climate Institute expects coffee to go extinct by the year 2080.
John Connor, CEO of The Climate Institute says that we can combat it by working to become more carbon neutral. Hopefully Coca-Cola is up-to-date with their research on this matter, and the coffee they’ll offer will be climate neutral, or provide a fair return to farmers and their communities. This way we can buy it without guilt. It seems this would be in their best interest, since it would put them ahead of many other coffee retailers.
Future coffee extinction or no, this appears to be a smart and natural move for Coca-Cola to make. Right now, we love our coffee, and as far as I’m concerned, Modi is right that we look to coffee for a morning boost and an afternoon pick-me-up. It’s better for us than soda, and I think more of us are becoming health-conscious. Of course, that doesn’t apply when we are adding our sugar and cream. Some bad habits never die.