Coca-Cola to Discontinue Odwalla Drink Brand

Coca-Cola will end the Odwalla drink brand and shutter a refrigerated-trucking network.
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Coca-Cola  (KO) - Get Report is closing its Odwalla juice business as well as a refrigerated-trucking network that delivers fresh drinks to stores.

The moves will cut about 300 jobs, The Wall Street Journal reported.

The Atlanta drinks giant will stop delivering Odwalla to stores by the end of July and will pick up unsold inventory through August, a spokesperson told The Journal. 

That spokesperson said the company had been working on the Odwalla unit for some years but ultimately "couldn't make it work, we couldn't figure out the cost-effectiveness" of keeping the Odwalla juice brand going. 

Coca-Cola did not respond to a request from TheStreet for comment. 

Coca Cola purchased Odwalla for $181 million in 2001 at a time when the company was looking to expand its non-cola portfolio. 

The company said that it would also sell its entire network of 230 chilled delivery trucks. Those trucks carry Simply orange juice and single-serve Fairlife milk. 

“It really is the result of consumers changing what they want so rapidly. By freeing up those assets, we can reinvest those costs in what consumers want today," the spokesperson said. 

Last Friday, the company announced that it will pause paid advertising on all social media platforms for at least 30 days. 

“We will take this time to reassess our advertising standards and policies to determine whether revisions are needed internally, and what more we should expect of our social media partners to rid the platforms of hate, violence and inappropriate content," Chief Executive James Quincey said.

Coca-Cola shares finished the regular trading session Wednesday up 0.3% at $44.81. At last check after hours they were also 0.3% higher.