Coke’s Aha sparkling water to lose most of its distribution after sales plunge

Aha, Coca-Cola’s colorfully-packaged sparkling water brand, will all but disappear from the U.S. next year. The three-year-old brand, conceived to challenge PepsiCo’s Bubly and category leader LaCroix, will be available only in what the company called “focused channels” and Coca-Cola Freestyle machines starting in 2024, a Coca-Cola spokesperson told Ad Age. “As part of our strategy on evaluating consumer preferences and portfolio prioritization, we are evolving the availability of the Aha sparkling water product line in the U.S.,” the spokesperson said. “We see the sparkling water category as an opportunity for portfolio growth in North America and will build on the strength and success of Topo Chico, the leading premium sparkling water brand.” Check out the latest Ad Age events and award programs Aha will continue to be available in Canada, the company said. Sales plunge Aha was Coca-Cola’s biggest new brand launch in more than a decade, and was supported by significant advertising spend. It brought bold flavor combinations, innovation such as caffeine, and vibrant packaging to the sparkling water category, but failed to sustain its early growth pace and never caught up to rival PepsiCo’s Bubly, which launched two years earlier. Both brands were chasing down category leader LaCroix, which drew young consumers seeking an alternative to sugary sodas. Figures from Beverage Digest show Aha sales fell sharply in the first quarter of 2023, with volume plummeting by 42% and dollar sales down by 30%. A delisting by Publix, the huge Southeastern supermarket retailer, contributed to the falling sales, as did the discontinuation of Aha’s caffeinated varieties, the publication said. Aha held a 1.9% market share in the sparkling water category in the first quarter, Beverage Digest figures showed. LaCroix (14% market share) led the category followed by Sparkling Ice (12%), Polar (8.5%) and Bubly (7.5%). Overall category volume declined by 5.6% in the quarter, as consumers explored beverages with more flavor, or better-for-you formulations, according to Duane Stanford, editor and publisher of Beverage Digest. “It appears to me that Coke is no longer interested in chasing what is becoming an increasingly commoditized sparkling water category,” Stanford said. “Sticking it out may have meant extending Aha into value-added functional or flavored space. In the end, it looks like Coke execs see Topo Chico as the more profitable path.” Topo Chico, a sparkling mineral water, held a 2.6% share of the sparkling water category in the first quarter, according to Beverage Digest. Bubly is likely to stay in the sparkling water fray, said Stanford, noting the PepsiCo brand is currently expanding to a line called Bubly Burst meant to compete with sweeter rivals in the space such as Sparkling Ice. Beverage Business Insights posted about Aha’s market exit strategy on Thursday, citing Coke execs saying the brand has run its course. Coca-Cola execs attending NACS show confirmed that Aha essence water brand has run its course, exiting the market as inventories are depleted, confirming fears of online fans who were having increasing trouble finding their favorite flavors in recent weeks.— Beverage Insights (@BevInsights) October 5, 2023 From big launch to pullback Aha spent $3.8 million in measured media in the first half of 2023, according to Vivvix, including paid social from Pathmatics. The brand spent $9.2 million in 2022 and $25.9 million in 2021, Vivvix and Pathmatics figures show. Aha launched as the pandemic hit in March of 2020. A major ad campaign began in 2021 from the agency Preacher called “Can I Get an Aha” which cast duos of comic actors like Lauren Lapkus and Colton Dunn; Ben Schwartz and Jenny Slate; and Maya Erskine and Anna Konkle. Despite what Stanford called a “rocky” launch complicated by supply chain woes in the pandemic, Aha reported strong early results. The brand outperformed category benchmarks on metrics like brand love, taste preference and repeat purchases in 2020, according to Coke. Aha generated $131 million in sales in 2021, a 25% increase over its debut year, Coke said. Consumers in recent months have had trouble finding certain varieties of Aha, according to social media posts. @drinkaha what's going on with Orange+Grapefruit? I can't find it at my normal retailers in Northern Virginia.— Kris (@beachbag4) September 22, 2023 I'm starting to think that there is something wrong with your water. Nobody is carrying it anymore. pic.twitter.com/Memywwc7w3— Geyser Point (@geyserpoint) June 11, 2023 Sign up for Ad Age newsletters From influencer marketing to agencies, get the latest news and analysis delivered to your inbox Click here

Coke’s Aha sparkling water to lose most of its distribution after sales plunge

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