Business Notes Marketing

When Coca-Cola Chairman Roberto Goizueta announced in April that the company was changing the secret formula of Coke, he proclaimed that "the best has been made even better." After public outrage forced Goizueta to bring back the original brew as Coca-Cola Classic in July, he still hoped that the sweeter taste of new Coke would catch on. So far, however, the majority of Coke buyers seem to prefer the Real Thing. The company has not released comparative sales figures, but a survey by Beverage Digest showed that in seven of ten markets studied, Classic is outselling new Coke by an "overwhelming" margin.

The proliferation of brands has added fizz to Coke's overall business. The company says sales in July and August of new Coke, Classic Coke and Cherry Coke, another product unveiled this year, were 10% higher than sales of old Coke in the same months of 1984. But the expense of promoting the brands has hurt Coke's bottom line. Last week the company predicted that its 1985 operating income would be "up slightly or flat" when compared with the 1984 figure. Coke's less than bubbly outlook helped send its stock down nearly 2 points last week, to 68 3/8.