The Sprite Rebrand Mistake & What Brands Can Learn From It

Rebranding seems to be the go to option for most brands in 2026, but also quite often the wrong move.

Research shows that 75% of companies have undergone a rebrand since 2020, with 51% updating their branding strategy in response to the COVID-19 pandemic - reflecting the evolving demands of consumers.

You see a lot of companies think bad sales numbers, poor customer service and other problems they might be encountering could be solved by a rebrand.

At Graphix Pyramid Studio we have been involved in a lot of rebranding and sometimes not because we feel it is the right option, but because a client wants it so bad that if we refuse to do it they will go do it somewhere else. So instead we suggest a brand refresh, which is simply improving their visual identity while retaining the core values of the brand, just to make sure their problems do not get worse. That example shows that this is becoming an issue.

Rebranding is often recommended by agencies to either close a client or improve their billable hours. Sometimes it is forced upon a designer or an agency by a client because their competitors just got a new look and they want the same thing. Worse thing is some clients do not even know what the word rebranding means.

Welcome to Sketch Line Friday, where we break down brand strategies, designs, and marketing strategies just for the fun of it.

What rebranding actually means

Rebranding is a strategic response to change - it happens when the story a business is telling no longer matches who it is, who it serves, or where it is going. It can include the reinvention of everything from a brand's name and tagline to its logo, visual identity, website, and marketing collateral.

This all makes sense on paper but is also easy to mistime.

Let's use Sprite as our case study

Sprite in 2022 rebranded. They kept their color palette the same but changed their iconic logo mark. They changed the font, which was really cool, but made a huge mistake by removing something that communicated a lot about the brand: the lemon.

You might think that is just a little lemon on a logo and it should not have mattered, but it did. Sprite has one message: freshness. The lime on the icon indicated that until they changed it in 2022. Take a look at this and tell me if it does not look bland.

No wonder they had to change it this year to bring back the lemon with the tagline, "it's that fresh".

The new look is a return to Sprite's Lymon symbol, an asset strongly associated with the brand. Of course, it has had a makeover and is now one with the Sprite wordmark, appearing as the dot in the i.

Rebranding is not bad, but knowing what to change is practically the most vital aspect of it.

Sprite were right to rebrand but they took it too far. After complaints from customers, they decided to make a simple change which landed them in the middle. That turned out to be the best place to be in.

When should a brand consider rebranding?

To know if your brand needs a rebrand, consider whether at least three of these problems are present. If not, you may just be destroying trust you have already built with your customers.

1. Your business has fundamentally changed

Has your business expanded its offerings, shifted its focus, or fundamentally changed its operational model? When your company undergoes change, your brand needs to keep pace.

2. Your vision or mission has evolved

If your organisation's vision or mission has changed, it is a strong reason to think about rebranding. These core elements define what your company is all about.

3. Your visual identity feels outdated

Design trends evolve, and an outdated visual identity can subtly communicate that your company is not keeping pace with innovation.

4. You are struggling to connect with your audience

If you struggle to connect with your target audience, one reason may be that you are not communicating your company values clearly enough.

5. You are entering new markets

If you are expanding into new geographical or demographic markets, rebranding can help tailor your image to resonate with these new audiences.

6. Mergers, acquisitions, or restructuring

When a company undergoes internal reorganisation, a rebrand can help signal the transformation both internally and externally.

7. Declining performance or stagnation

If you notice a dip in sales or market share, a rebrand can spark new interest and attract new customers when the strategy is right.

8. Reputation damage or a PR crisis

When a brand faces a public relations crisis or develops a negative reputation, rebranding can act as a reset button when handled strategically.

9. Increased competitive pressure

If new competitors are making waves in the market, a rebrand can help you stand out and clarify what makes you unique.

10. You are scaling up marketing efforts

When companies significantly increase marketing efforts, the existing brand may not support those initiatives effectively. Rebranding can become a strategic starting point.

Rebranding is tricky, yes. But when done correctly, it is amazing. It can solve problems related to sales and marketing and help build trust with your audience. When done at the wrong time or incorrectly, it is costly. Be careful.

If your brand needs strategy, not just design - Graphix Pyramid Studio.