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Old 07-17-2008, 09:18 AM
 
Location: Georgia, on the Florida line, right above Tallahassee
10,474 posts, read 14,167,235 times
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Coca-Cola to hike prices after profit drops - Earnings - MSNBC.com

Chief Executive John Brock said in a statement that to deal with higher commodity costs and declining U.S. soda sales, the company will raise U.S. prices after Labor Day.
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Old 07-17-2008, 10:44 AM
 
Location: Ohio
21,296 posts, read 15,086,092 times
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Quote:
Originally Posted by 70Ford View Post
Coca-Cola to hike prices after profit drops - Earnings - MSNBC.com

Chief Executive John Brock said in a statement that to deal with higher commodity costs and declining U.S. soda sales, the company will raise U.S. prices after Labor Day.
That's a perfect example of what Cost Inflation does. The price hikes won't increase profit margins, they'll only restore lost profit margins. Maybe. The issue with price increases is that Price Elasticity comes into play. Raising prices neither guarantees an increase in revenues, nor an increase in profits. There's lots of substitutes for Coca-Cola and people who can't afford it, or are looking to cut their spending, will buy the substitutes.
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Old 07-17-2008, 11:57 AM
 
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Hmmm, to counteract declining sales they are raising prices.
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Old 07-17-2008, 02:10 PM
 
Location: Eastern Washington
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Probably more than 20 years ago, I quit drinking soda, period. You either get a handful of corn syrup, a handful of raw sugar, or a dose of synthetic chemical sweetners in each can/bottle, the sugar and phosphoric acid are perfect to start a cavity in your teeth. So they can raise the price to $10/can for all I care, or give it away free - either way they can keep it.

Perrier, O'Douls or similar if I can't afford the alcohol, but in the evenings or if not driving, I'll have a good beer instead. Or tea.
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Old 07-17-2008, 02:23 PM
 
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They will price themselves into obsolesence. Soda isn't a necessity and people have a psychological price point, after which they will simply substitute something else. Sales are down, because that first point was probably around $1.50. When sodas hit that price point last year, sales started declining. When it hits $1.99 or $2, a lot of loyal users will stop drinking it.

Fast food sales are already feeling the switchover. People have traded down from the combo meals to a sandwich, fries and water. To compensate, the chains have marked up their fries. So Coke will continue to lose at all points of purchase. Wonder how long they'll keep paying those dividends?
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Old 07-17-2008, 05:04 PM
 
Location: Houston, TX
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I think slowly Americans are weening themselves away from sodas. Maybe toward Gatoradee and waters. But with a can more than a dollar thats a tough sell.
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Old 02-15-2011, 10:04 PM
 
Location: Yucaipa, California
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A 2 liter bottle of coke at the local market here is $1.67 + tax + crv. Sometimes its 0.99 - $1.25 at walmart or buy 4 for 0.79 or 0.99 ea (must buy 4 for that price).
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Old 02-15-2011, 10:52 PM
 
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Originally Posted by steel7 View Post
A 2 liter bottle of coke at the local market here is $1.67 + tax + crv. Sometimes its 0.99 - $1.25 at walmart or buy 4 for 0.79 or 0.99 ea (must buy 4 for that price).

$0.68 for generic...

And they make a profit.
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Old 02-15-2011, 10:56 PM
 
Location: Tucson/Nogales
18,590 posts, read 22,416,302 times
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Maybe my taste buds are getting senile with the rest of me, but I don't notice any difference between the real thing and the generic. Who cares!

I rarely drink soda anyway. I'm forever spilling it, and you may as well as pour syrup on the floor. Always a mess to clean up, not coffee!
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Old 02-15-2011, 11:26 PM
 
Location: SWUS
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Good. Hopefully the raising of prices of Coke with the falling soda sales will make it so that people start drinking healther things like juice or iced tea.

Iced tea is great.. especially the iced green tea, since it has a light flavor. It takes well to flavoring with fruit, too. Green tea Arnold Palmers
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