Coca Cola price increases of 8% will affect the pricing of the beverage industry

The rising sugar prices and oil prices continue to increase the cost of beverage companies. The retail price of all carbonated beverages of Coca-Cola will be raised, and PepsiCo has adjusted the price of its products around the 15th of this month.

The reporter learned from a Coca-Cola sales person that the price adjustment will be nation-wide and the products will involve Coca-Cola, Sprite and Fanta. The average price increase is 8%. In the Shanghai market, the prices of these three beverages in 2 liters were the highest, reaching around 17%.

A relevant person of Coca-Cola China Beverage Co., Ltd told the reporter that since Coca-Cola has bottling plants in various places, these factories will adjust prices according to different local conditions.

As for the reasons for the price increase, the above-mentioned personnel said that it was mainly due to rising prices of sugar and plastic particles. However, it is not clear about the impact of specific costs.

According to relevant prices found by reporters, the current recycled plastic particles made of waste plastic bags have risen from the previous average price of 3,800 yuan/ton to the current 5,000 to 7,800 yuan. This year, the price of sugar has been at a high level. The highest price has soared to 5,750 yuan per ton. Last year, Hainan Sugarcane suffered a severe drought and typhoon, which reduced production by about 50% compared with 2004. It was the lowest sugar production in the past few years. The cost of sugar accounts for about 20% of the cost of the entire beverage.

The source said that if the raw material prices have been maintained at the current status, it is not ruled out that the prices of Coca-Cola affiliated juices and tea drinks may increase.

At the same time, Pepsi Cola’s subservient carbonated beverages also quietly increased prices a few days ago, with price increases of around 8% to 10%. And this price increase is also adjusted by the bottling plants around the country.

A Pepsi dealer told reporters that in addition to price increases, promotions during this period may be reduced or suspended, waiting for changes in the cost and sugar prices.

However, Coca-Cola dealer told reporters that the price increase will not have a great impact on its sales. On the one hand, the biggest competitor, Pepsi Cola, also made a price adjustment decision. On the Other hand, after this price hike, the price of the product reverted to the level of four years ago, after Coca-Cola had lowered the price because of falling raw material prices. Coca-Cola also said that it is impossible to increase prices to levels unacceptable to consumers.

The Pepsi dealer also stated that the current price is actually a price back to the pre-promotion, so consumers can still accept it. The relevant person of the United Group told the reporter that the group had no plans to increase the price of its drinks.