4. What could be some of the challenges for Coca-Cola when it undertakes a line-extension strategy?

In 2018, in response to growing public concern about Australians’ sugar consumption, members of the Australian Beverages Council signed a pledge to reduce sugar in their product portfolios by 10 per cent by 2020 and 20 per cent by 2025. In a bid to achieve this goal, Australia’s largest beverage manufacturer, Coca-Cola Australia, accelerated its voluntary reformulation program (see Exhibit 8.10). This meant a change in Coca-Cola’s product mix, with the company reducing or removing sugar from 25 products since 2015. This program includes several of its most popular brands, such as Sprite and Fanta.