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Coke’s stronger aftertaste was losing to Pepsi’s sweeter blend as America’s taste buds changed over the generations since its introduction in the waning years of the nineteenth century. Dr. John Pemberton, a pharmacist, came up with the formula at his small drugstore in 1886. He experimented with many flavorings, settling on cola, and yes, it originally had a touch of then-legal cocaine. It was an immediate hit and became popular enough to become one of the first nationwide brands. The original formula, said to be locked in an Atlanta vault, has been unchanged since Pemberton perfected it. The only modification came as a result of economics. For years, Coca-Cola had been slowly introducing the less-expensive high-fructose corn syrup in lieu of cane sugar. By 1980, nearly half the Coke bottled in America contained corn syrup, and by the end of 1984 cane sugar vanished from domestic Coke entirely.

Despite spending $100 million a year on advertising, Coke was still losing to Pepsi. By then, the simple-but-effective Pepsi Challenge was a marketing coup in Pepsi’s favor. Roy Stout, head of market research for Coca-Cola USA, said, “If we have twice as many vending machines, dominate fountain, have more shelf space, spend more on advertising, and are competitively priced, why are we losing share? You look at the Pepsi Challenge, and you have to begin asking about taste.”

By fall 1983, Sergio Zyman, senior vice president of marketing of Coca-Cola USA, was given the unenviable task of finding a new flavor. The corporate executives spent a year and $4 million trying to find a new flavor for Coke, dubbed Project Kansas, coming up short against Pepsi every time. The research scientists ultimately came up with a hit that tested through the roof, changing the Pepsi Challenge results by eighteen points in Coke’s favor. They decided that if people liked the slightly smoother Diet Coke taste, all they had to do was replace the saccharine with corn syrup and a new, improved Coke would exist.

Focus groups with consumers during this time also provided discouraging news. Some said there was no way they’d drink a reformulated Coke. Others said they liked Coke as their favorite drink, but when asked what they actually drank, the answer was all over the map.

People were carefully asked during 200,000 taste tests if they liked the new taste over the old. And while they did prefer the new taste, they also commented that any tampering should not be done to an institution. The focus groups did investigate whether replacing Coca-Cola with New Coke would change their buying habits. Over time, the interpretation was that the switch would cost them 5 to 6 percent of current exclusive buyers. However, the executives presumed these people would be more than made up for by those who liked this new taste over Pepsi or other cola beverages.

Any marketing concerns on changing a classic taste were forgotten in their enthusiasm for the taste test results.

Here was a chance to turn the tables on their chief rival. As a result of that thinking, they chose to retire the current formula in favor of the New Coke. After all, they couldn’t market two blends of Coke, since neither one could claim to top Pepsi as America’s number-one soft drink. Additionally, when carrying two versions was discussed with their bottlers around the country, it was rejected. At the time, Coca-Cola had expanded their offerings to include Coca-Cola, Diet Coke, Caffeine-Free Diet Coke, Caffeine-Free Coke and Cherry Coke. Plans were already on the boards to introduce Diet Cherry Coke and Minute Maid Orange Soda. The old Coke would have to make way for the New. At corporate headquarters in Atlanta they were elated to see the drink stand up to Pepsi and they were already anticipating the profits.

When the announcement was made, the smiles in the corporate boardroom were replaced with looks of sheer terror. Without even tasting the New Coke, Americans objected to it. After all, Coca-Cola was meddling with