Coke debuts smaller bottles
The company hopes its smaller, cheaper packages will appeal to consumers on tight budgets.
That's causing problems for Coca-Cola (KO), Pepsi (PEP) and other soft-drink makers. Soda volumes in the U.S. are down for six years straight.
So now, Coke is downsizing. The company will debut 12.5-ounce bottles for 89 cents each, The Wall Street Journal reports. The move continues a trend toward smaller bottles for the company. Last year, it began selling a 16-ounce bottle for 99 cents -- slimmed down from the 20-ounce bottles in convenience stores.
Is Pepsi a better investment than Coke right now? Check out the analysis in the following video.
Post continues below video:
Coke has also begun selling "mini" cans in the 7.5-ounce size. The company will cut prices on those to $2.99.
The idea is to offer smaller quantities at more appealing prices. The hope is that they will resonate at a time when unemployment stubbornly sits above 9% and many households are living paycheck-to-paycheck.
Experimenting with new sizes is a change for Coke, which has normally been just fine with three offerings: 20-ounce bottles, two-liter bottles and standard cans. In Mexico, however, Coke is sold in more than 30 packages, from tiny 6.75 ounces to three-liter bottles, the Journal reports.
Coke is hoping to maintain the momentum over Pepsi it has been building. Even though Americans are drinking less soda, Coke has upped its share of the U.S. market to 34.3% this year compared with 32.8% for Pepsi.
It seems that these soda companies understand that price is an issue. Smaller cans/bottles (costing more per oz.) are not the answer to that. 2 years ago, a 6 pack of 24 oz bottles of Coke was $2. where I live. They now run $4.78...Pepsi products cost even more. Can I afford to pay $4.78? Sure. Will I ever do it? No way. I don't believe that Coke's costs for production and transport have more than doubled in 2 years, though my grocery costs have. I have learned to re-appreciate the taste of water, and discovered water flavorings such as mio and crystal light are just as satisfying, and cost much less. I went from consuming 6-8 bottles of Diet Coke per day to 1. The more these companies make their products ridiculously expensive (come on...it's cheap to produce), the more soda consumption will go down, and smaller bottles where we can pay even more for less product are not the solution. What kind of fools are running these companies (and their marketing departments) these days?
Perhaps this could be named "The Netflix Principle".
If your worried about sugar intake, why are you and your kids drinking POP in the first place?
And for all you americans claiming that you don't want the sugar, YOU'RE NOT DRINKING SUGAR in your sodas. ALMOST EVERY REGULAR SODA MADE IN THE US TODAY IS SWEETENED WITH HIGH FRUCTOSE CORN SYRUP!!!!!!!!!!!!!!!!!!!!!!!! unless of course you buy pepsi throwback, mountain dew throwback or sierra mist.
And before you say that there is no difference, believe me, THERE IS a difference between sugar and HFCS (any wonder why with the almost total takeover of the sweetener market by HFCS within the past 20 years, we have an amazing spike in cases of diabetes that it is called a mahor health epidemic??? Sugar has been used for centuries and we did not have even close to the current rate of diabetes.
I think its a good idea to stop the drinking of soft drinks,
look at all the fatties out there swigging down as much sugar,high fructose and all that stuff that is no good for you.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
As geopolitical tensions threaten to spin out of control, investors are wondering how best to position their portfolios for the global turmoil.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.