Coca-Cola Actually Makes More Money As America Drinks Less Coke
Truth is, there’s less consumption of Coke nowadays. But that hasn’t stop Coca-Cola Company from making more money. In fact, with consumption down, the company found that it is earning more.Advertisement
While America has decided to cut down on their regular servings of Coke, it has not cut down the popular soda from its diet altogether. This is where Coca-Cola saw an opportunity, charging customers more for bottles that contain less of the carbonated drink. And the upside is that the company makes more money from it.
According to a presentation done by Coca-Cola North America President Sandy Douglas and Coca-Cola Chief Financial Officer Kathy Waller from the Morgan Stanley Global Consumer Conference, the company is actually accelerating its price realization while maintaining volume growth. In fact, both price/mix and unit case growth are up by 2 percent during the first nine months of the year throughout September.
The company has managed to find a great balance between quality and quantity, especially when it comes to its number one product, Coke. Whereas the 2-liter bottle of Coke only delivers $0.18 in revenue per purchase, the slim and stylish 8.5 oz. Coke bottle delivers $1.60 per purchase. Meanwhile, the 12 oz. bottle delivers $1.35 per purchase. Moreover, there is a lot of value growth in smaller packages with the transaction purchases growing to as much as 15% in value growth, while the core’s value growth dips slightly by 2 percent.
Today, Coca-Cola continues to provide for as much as 1.9 billion servings of products daily. With more than 3,600 products, it continues to be number 1 worldwide when it comes to sparkling beverages, still beverages, juice drinks and ready-to-drink coffee.