Coca-Cola Tests Dirty Soda Machines for Gen Z Consumers

Beverage Giant Races to Meet Demand for Customization

Coca-Cola is developing a wave of new drink machines and customizable beverages as restaurants push to expand their offerings beyond traditional sodas. The company is testing equipment that can produce dirty sodas-soft drinks combined with flavored syrups, cream, or other ingredients-along with brightly colored refreshers and white-label energy drinks that customers can customize by color and flavor.

The Atlanta-based beverage giant conducts this innovation work at secretive labs located in an anonymous office park near its global headquarters. The new equipment and drinks aim to help Coca-Cola’s restaurant partners capture sales from handcrafted beverages, a category that has become crucial for driving customer traffic even as diners reduce overall spending. The company must evolve its offerings quickly or risk losing sales to competitors as operators seek more convenient ways to expand their drink menus.

“It’s our job to ensure that we’re providing unique experiences and beverages because it’s not a bonus now with consumers-it’s the norm, they expect it,” Megan Tallman, Coca-Cola’s vice president of dispensed equipment and innovation for North America, told reporters.

Beverage Sales Outpace Food at Restaurants

The push for innovation comes as drink sales outpace food-only orders at restaurants. During the second quarter of this year, beverage servings at restaurants outpaced both servings of food alone and food combined with beverages, according to data from Circana. For consumers-particularly Generation Z-drinks purchased away from home represent far more than simple hydration.

“Oftentimes these beverages are an opportunity to take a break, get some energy or protein, have a treat, at a lower price point,” said David Portalatin, Circana senior vice president and food service industry advisor.

Major restaurant chains that are longtime Coca-Cola customers, including McDonald’s and Wendy’s, have been expanding their beverage menus to capture this shift in consumer behavior while boosting profit margins. Handcrafted drinks like refreshers and iced coffee have become essential traffic drivers, creating pressure on Coca-Cola to provide the equipment and ingredients these operators need.

Testing New Dispensers with Theater Chain

Coca-Cola is partnering with AMC Theatres to test a Micro Matic dispenser capable of producing brightly colored refresher drinks. The company is also developing technology to enable its existing machines to create dirty sodas, a trend that has exploded on social media platforms. These innovations reflect Coca-Cola’s strategy to provide equipment that can produce the types of Instagram-worthy and TikTok-ready beverages younger consumers crave.

Tallman emphasized the willingness of Generation Z customers to pay premium prices for drinks that offer visual appeal and shareability on social media. “When you think about Gen Z, they are okay paying $10 for a drink that is craveable and that they can show on their Instagram or on TikTok, which is helping our customers drive margin and also beverage attachment,” she explained.

The company is also preparing to launch white-label beverage options, including an energy drink that restaurants can customize by both color and flavor. This approach allows restaurant chains to create signature drinks without developing entirely new products from scratch, giving them differentiation while leveraging Coca-Cola’s distribution and equipment infrastructure.

Freestyle Machines Evolve After Seventeen Years

Coca-Cola’s Freestyle drink dispenser celebrated its 17th anniversary this July. The machine, which offers dozens of flavor combinations, has become more relevant today than when it first launched over a decade ago, according to Tallman. Despite the variety the Freestyle platform already provides, Coca-Cola continues working to evolve the equipment to keep pace with rapidly changing consumer preferences and the competitive pressure from handcrafted drink specialists.

The beverage industry faces intensifying competition as coffee chains, smoothie shops, and even gas stations expand their drink offerings with customizable options and seasonal flavors. Restaurant operators view beverages as a high-margin category that can differentiate their brands and encourage repeat visits, creating incentives to invest in more sophisticated drink equipment and expanded menus.

Lower Price Points Drive Traffic

The appeal of beverages extends beyond taste and social media potential to affordability. As consumers broadly cut spending on restaurant meals, a $10 handcrafted drink represents a more accessible indulgence than a full meal. This price-to-experience ratio makes beverages particularly attractive for younger consumers who want a treat or energy boost without the commitment of ordering food.

Portalatin’s research shows that these drinks serve multiple functions-providing a break from routine, delivering energy or protein, or offering an affordable reward. The versatility of the beverage occasion creates opportunities for restaurants to capture sales throughout the day, from morning coffee runs to afternoon pick-me-ups and evening social outings.

Innovation Labs Drive Equipment Development

The secretive nature of Coca-Cola’s innovation labs near its Atlanta headquarters reflects the competitive stakes in the beverage equipment market. The company invests heavily in research and development to stay ahead of consumer trends and provide restaurant partners with exclusive equipment capabilities. This strategy aims to lock in restaurant relationships by making Coca-Cola’s dispensers essential infrastructure for executing popular drink programs.

As the beverage landscape continues to shift toward customization, visual appeal, and premium experiences, Coca-Cola’s equipment innovations represent a critical front in defending its market position against both traditional competitors and new entrants in the handcrafted drink space. The company bets that providing the tools for restaurants to create trending beverages will prove more effective than simply supplying traditional fountain sodas in an increasingly sophisticated and experience-driven market.