Why did they discontinue Clearly Canadian?

December 4, 2025 •

3 min read

According to a March 2010 trustee report, Clearly Canadian had filed for bankruptcy the previous year with just $12,000 to its name. So, why did they discontinue Clearly Canadian, a beverage that had once been a cultural icon of the 1990s and a multi-million-dollar success story?

Quick Summary

Several business miscalculations, including a flawed bottle redesign and over-expansion, led to the financial collapse of Clearly Canadian. This, coupled with intense market competition, saw the beloved 90s drink disappear from shelves until a fan-driven crowdfunding campaign resurrected the brand.

Key Points

Poor Management: A series of bad corporate decisions, including a disastrous bottle redesign and brand over-expansion, drained resources and led to failure.
Shifting Tastes: While marketed as a healthy alternative, Clearly Canadian's high sugar content became a liability as consumers embraced zero-calorie, unsweetened sparkling waters.
Competitive Pressure: The brand was outmaneuvered by major beverage corporations that entered the burgeoning sparkling water market with greater financial and distribution power.
Financial Collapse: Years of missteps and mounting financial losses led to the company filing for bankruptcy in 2010, after production had ceased the previous year.
Fan-Driven Revival: The discontinuation was not permanent. An online crowdfunding campaign, fueled by consumer nostalgia, successfully brought the brand back into production in 2017.

From 90s Sensation to Financial Failure

In the late 1980s and early 1990s, Clearly Canadian reigned supreme as a 'new age' alternative to traditional soda pop. With its iconic teardrop-shaped glass bottle and light, fruity flavors, it became a beloved symbol of its era, even appearing in popular TV shows like Friends and Seinfeld. By 1993, the company reached peak annual sales of $155 million. However, a series of poor business decisions and fierce market competition in the late 1990s and 2000s ultimately tanked the company, leading to the drink's discontinuation in 2009.

Critical Errors in Brand Management

For a brand that commanded such consumer loyalty, its downfall was marked by surprisingly straightforward mistakes.

A disastrous packaging change. In 2000, the company made the fateful decision to increase the size of its signature glass bottles. The seemingly minor change had massive consequences. The new, larger bottles did not fit on standard store shelves, forcing retailers to give up valuable space and significantly increasing the brand's production and shipping costs. Founder Donald Mason famously called it a "bonehead move".
Over-expansion and market dilution. The company tried to expand too far, too fast, introducing a confusing array of products that diluted its core brand. This included:
- Clearly Tea, a lightly carbonated iced tea
- Clearly 2, a two-calorie version of the original
- Orbitz, a novelty drink with floating gelatin spheres
- O+2, Battery, and Refresher drinks

These expansions failed to gain traction, draining valuable resources from the company's flagship product.

Misleading 'healthy' marketing. While promoted as a healthier, lighter alternative to sugary sodas, classic Clearly Canadian was not low in calories or sugar. With anywhere from 15 to 30 grams of sugar per bottle, it was closer to a soft drink than the zero-calorie sparkling waters that would later dominate the market. As health consciousness increased, this positioning became a liability.

Market Shifts and Corporate Competition

As Clearly Canadian stumbled, the beverage landscape evolved dramatically, presenting even more challenges.

Increased competition. The brand's early success did not go unnoticed. Major beverage companies with far greater financial and distribution power launched their own sparkling water products, crowding out Clearly Canadian's shelf space and market share.
The rise of unsweetened seltzers. Consumer tastes shifted toward healthier, less sweet options. The subsequent popularity of zero-calorie, zero-sugar brands like LaCroix and Bubly made Clearly Canadian's sugar content seem outdated and unappealing to many consumers.
Financial and legal troubles. A period of mismanagement, financial losses, and legal battles plagued the company throughout the 2000s, leading to a steady decline in revenue. This culminated in bankruptcy and the complete cessation of production in 2009.

Comparison: Clearly Canadian vs. Modern Sparkling Water


Feature	Clearly Canadian (Originals)	Modern Sparkling Water (e.g., LaCroix)
Sweetness	Lightly sweetened with cane sugar.	Unsweetened, flavored with natural essences.
Sugar Content	15-30 grams per bottle.	0 grams per can.
Calories	Significantly higher due to sugar.	0 calories.
Ingredients	Spring water, cane sugar, natural flavors, citric acid.	Carbonated water, natural flavors.
Branding	Nostalgic, full-flavored, premium alternative to soda.	Clean-label, minimalist, wellness-focused.
Packaging	Iconic blue teardrop-shaped glass bottle.	Aluminum cans, plastic bottles.
Consumer Focus	90s nostalgia, indulgence.	Health-conscious, modern consumers seeking low-sugar options.

The Fan-Fueled Resurrection of a Classic Brand

For many years, it seemed Clearly Canadian was gone for good. However, the strong current of 90s nostalgia and a dedicated fan base refused to let the brand fade completely.

A crowdfunding campaign began circulating online around 2013, with fans eagerly expressing their desire to see the drink return.
A new ownership group acquired the brand and listened to the public outcry, launching an Indiegogo campaign in 2015.
The goal of pre-selling 25,000 cases was smashed within days, proving the intense demand for the nostalgic beverage. The campaign ultimately led to the brand's relaunch in 2017.
Today, Clearly Canadian is back in production and available in many stores and online, offering both its classic sugar-sweetened line and new zero-sugar versions.

Conclusion: A Lesson in Marketing and Nostalgia

The original discontinuation of Clearly Canadian was a complex issue rooted in a combination of internal corporate mismanagement and external market pressures. Hubristic decisions regarding packaging and an over-ambitious product line, combined with shifting consumer desires for healthier, zero-sugar options, set the stage for its temporary demise. However, the brand's resurrection proves that nostalgia and a passionate community can be a powerful force in the modern marketplace, bringing a beloved classic back from the brink.

Visit TastingTable.com for more on what led to the original Clearly Canadian discontinuation and its later comeback.

Frequently Asked Questions

Yes, production of Clearly Canadian ceased entirely in 2009 due to a combination of financial difficulties and poor management decisions, though a fan-driven crowdfunding campaign later resurrected the brand.

Yes, following its successful comeback, Clearly Canadian is once again available in many major retailers in North America, as well as online through its website and retailers like Amazon.

Key factors included a flawed redesign of the iconic glass bottle that created distribution problems, introducing too many unsuccessful product variations, and growing competition from larger corporations.

The new, larger bottles introduced in 2000 were a poor fit for standard store shelves, which led to reduced shelf space and increased costs for the company.

A new ownership group launched a crowdfunding campaign in 2015 that allowed fans to pre-order cases of the beverage. The campaign's rapid success provided the capital needed to restart large-scale production.

Unlike modern unsweetened options like LaCroix or Bubly, classic Clearly Canadian contains sugar and is a sweeter, more full-flavored sparkling beverage.

Clearly Canadian effectively went out of business in 2010 after years of declining sales, financial losses, and bankruptcy proceedings, with production having ceased in late 2009.

No, Orbitz was one of many failed product extensions launched by the parent company in the late 90s, but it was not the sole reason for the company's eventual demise.