==== Excerpt from www.wikipedia.com ====

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of the drink. Some authorities believe that New Coke, as the reformulated drink was called, was invented specifically to respond to its commercial competitor, Pepsi (which had more lemon oil and less orange oil, and used vanillin rather than vanilla). Double-blind taste tests indicated that most consumers preferred the taste of Pepsi to Coke. In taste tests, drinkers were more likely to respond positively to sweeter drinks, and Pepsi had the advantage over Coke because it was much sweeter. Coca-Cola tinkered with the formula and created "New Coke". Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi.^{[citation needed]} The reformulation was led by the then-CEO of the company, Roberto Goizueta, and the president Don Keough.

It is unclear what part long-time company president Robert W. Woodruff played in the reformulation. Goizueta claimed that Woodruff endorsed it a few months before his death in 1985; others have pointed out that, as the two men were alone when the matter was discussed, Goizueta might have misinterpreted the wishes of the dying Woodruff, who could speak only in monosyllables. It has also been alleged that Woodruff might not have been able to understand what Goizueta was telling him.^{[citation needed]}

The commercial failure of New Coke therefore came as a grievous blow to the management of the Coca-Cola Company. It is possible that customers would not have noticed the change if it had been made secretly or gradually, and thus brand loyalty could have been maintained. Coca-Cola management was unprepared, however, for the nostalgic sentiments the drink aroused in the American public; some compared changing the Coke formula to rewriting the American Constitution.^{[citation needed]}

The new Coca-Cola formula subsequently caused a public backlash. Gay Mullins, from Seattle, Washington, founded the Old Cola Drinkers of America organization, which attempted to sue the company, and lobbied for the formula of Old Coke to be released into the public domain. This and other protests caused the company to return to the old formula under the name Coca-Cola Classic on July 10, 1985. The company was later accused of performing this volte-face as an elaborate ruse to introduce a new product while reviving interest in the original. Donald Keough, company president at the time, responded to the accusation by declaring: "Some critics will say Coca-Cola made a marketing mistake. Some cynics will say that we planned the whole thing. The truth is we are not that dumb, and we are not that smart."

The Coca-Cola Company is the world's largest consumer of natural vanilla extract. When New Coke was introduced in 1985, this had a severe impact on the economy of Madagascar, a prime vanilla exporter, since New Coke used vanillin, a less-expensive synthetic substitute. Purchases of vanilla more than halved during this period. But the flop of New Coke brought a recovery.

Meanwhile, the market share for New Coke had dwindled to only 3% by 1986. The company renamed the product "Coke II" in 1992 (not to be confused with "Coke C2", a reduced-sugar cola launched by Coca-Cola in 2004). However, sales falloff caused a severe cutback in distribution. By 1998, it was sold in only a few places in the Midwestern U.S.