MAM
Should Coca-Cola pull the plug on Diet Coke?
MUMBAI: Diet soda seems to be a dying beverage breed. Despite having been around for the longest time in the market, diet sodas fallen out of favour with consumers and redemption isn’t in sight. Ever since carbonated drinks hit the market, countless inventors, entrepreneurs and engineers have tried to enhance the taste, flavour and packaging of the product while also trying to reduce the sugar content.
The beginning of the diet refreshment was in 1952, when Kirsch Bottling in Brooklyn, New York launched a sugar-free ginger ale called No-Cal, which was designed for diabetics, not dieters, and distribution remained local. In 1962, American soft drink company, Dr Pepper released a diet(etic) version of its soft drink, although it sold slowly due to the misconception that it was meant solely for diabetic consumption.
It was only in 1963 when Coca-Cola saw the power and joined the diet soft drink market with Tab, which proved to be a huge success.
Pepsi entered in the segment with Patio Diet Cola in 1963 and renamed it as Diet Pepsi the following year. Diet 7 Up was released in 1963 under the name Like but was soon discontinued in 1969 due to the United States government ban of cyclamate sweetener. After its reformulation and renaming it to Diet 7 in 1979, Coca-Cola countered this by releasing Diet Coke in 1982. After the release of Diet Coke, Tab took a backseat on the Coca-Cola production lines as Diet Coke could be more easily identified by consumers.
According to researches, many people turn to diet carbonated soda believing these would be a healthy alternative to sugary drinks or alcohol. But, several reports have revealed that aerated drinks actually cause people to feel empty which further leads them to over eating. This is primarily due to high levels of carbon dioxide present in these drinks that trigger a hunger hormone called ghrelin.
The global multinational beverage company Coca Cola recently launched a £10 million (Rs 90.4 crore) ad campaign to commence a refreshed packaging for Diet Coke along with two new flavours, Exotic Mango and Feisty Cherry.
The brand is banking on millennials who don’t drink Diet Coke to turn around the fortune of the struggling soda brand.
Coca Cola CEO James Quincey isn’t completely satisfied with Diet Coke’s performance and the introduction of new flavours and the new revamped identity is a desperate attempt to gain some lost market share. “One of our points of dissatisfaction in 2017 was that we were not about to turn around Diet Coke. We hope to find a path forward for Diet Coke, and at the very least stop declining sales.”
The new flavours and packaging, Quincey says are a step in the right direction, but they may not be enough to actually increase Diet Coke sales.
With an emphasis on millennials, the revamp and experimentation is targeted to those who don’t regularly drink Diet Coke. For the last few years, Diet Coke has been the weakest link in Coca Cola’s lineup despite being a zero-calorie drink and has struggled to win over many health-conscious shoppers.
People across the globe are increasingly cutting out sugar from their diet. The market of diet sodas in the US has dropped by a whopping 34 per cent since 2005 and the US industry beverage digest reported a sales drop in Diet coke’s portfolio by 1.9 per cent in 2016.
In India, Diet Coke and Diet Pepsi failed miserably. Although the products were launched with much fanfare, they were not able to capture any market share and Pepsi decided to pull the plug on the Diet variant. Similar was the fate of Diet Coke.
Another reason for the products’ failure could be its peculiarly artificial taste that due to less sugar content.
The distribution aspect has been another roadblock for the company as the concept of diet soda continues to remain unpopular and unknown in rural segments of India.
But with the new revamped brand identity and introduction of new flavours which might hit the Indian market soon, Coca Cola is hoping for better days ahead as it still continues to be one of the largest beverage manufacturers globally and Thums Up is the most consumed aerated drink in India.
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If you are actively investing to grow your money month after month, you already understand the value of planning ahead. SIPs, long-term portfolios, retirement planning and goal-based investing all point to one thing. You are building a future with intent.
What often gets missed in this process is one foundational question. How well is the income that funds all these plans protected?
Term life insurance fits naturally into this stage of financial planning. It does not compete with investments. It supports them by protecting the income that makes long-term growth possible.
Why Income Protection Is a Core Part of Financial Planning
Every financial plan begins with income. Before money is invested or saved, it is earned.
Over time, this income is allocated across multiple needs:
● monthly household expenses
● EMIs and long-term loans
● savings and emergency funds
● investments aimed at future goals
As responsibilities increase, financial planning becomes layered. Each layer assumes income continuity. Term life insurance exists to ensure that this structure does not become fragile due to overdependence on a single income source.
It adds stability to plans already in motion rather than introducing a new objective.
What does term life insurance do?
Term life insurance provides a fixed payout to your nominee if you pass away during the policy term. The purpose of this payout is practical and clearly defined.
It is intended to:
● replace lost income for a defined period
● help manage outstanding liabilities
● support ongoing household and goal-based expenses
There is no investment or savings component. This keeps the product focused and cost-efficient, allowing individuals to opt for meaningful coverage without diverting funds meant for growth-oriented investments.
Why Term Life Insurance Complements Investing?
Investments and insurance play different roles in a financial plan.
Investments are designed to:
● grow wealth over time
● compound with consistency
● be adjusted as goals and risk appetite change
Term life insurance is designed to:
● provide financial continuity
● protect existing plans from disruption
● remain stable once put in place
Keeping these roles separate improves clarity. Investments are allowed to perform without being forced to double up as protection, while insurance quietly supports the overall structure.
Who Should Consider Term Life Insurance?
Term life insurance becomes relevant when financial planning extends beyond individual needs. This typically includes:
a) Working professionals
When income supports shared expenses or long-term plans, protection becomes essential.
b) Individuals with long-term liabilities
Home loans, education loans and other EMIs often extend over decades. Term insurance ensures these obligations remain manageable.
c) Parents planning future milestones
Education, healthcare and lifestyle goals require continuity over many years.
d) Early planners with rising incomes
Starting earlier allows coverage to align smoothly with career progression and evolving responsibilities.
How Much Coverage Should Be Considered?
Coverage should be guided by financial reality rather than affordability alone.
A well-rounded evaluation typically considers:
● number of years income needs to be replaced
● existing and future liabilities
● long-term goals already planned
● inflation and rising living costs
Many insurance companies offer options starting from 50 lakhs, 1 crore term insurance and higher. It allows individuals to choose coverage based on their income, liabilities and future plans.
How Term Life Insurance Fits Into a Long-Term Plan
Once set up, term life insurance does not demand frequent attention.
It does not require active monitoring, market tracking or performance reviews. Its role is structural rather than dynamic.
By ensuring financial continuity, it allows families to:
● stay aligned with long-term plans
● avoid rushed financial decisions
● focus on execution rather than damage control
When aligned correctly, term insurance strengthens the foundation on which investments, savings and retirement plans are built.
Choose the Right Insurance Partner
Once the need, coverage amount and role of term life insurance are clear, the final and most important step is choosing the right partner.
This decision should be based on:
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● a strong claim settlement track record
● consistency in servicing and communication
● the ability to support long-term financial planning rather than just selling a product
Term life insurance is a long-term commitment. The partner you choose today will be the one your family relies on years down the line.
When protection is aligned with purpose and backed by a dependable insurer, term life insurance becomes a quiet but powerful part of a well-built financial plan.
