Coke is a lot of people’s regular drinks, and many foreigners “as water to drink”, so the news of the brewing price increase came as quite a shock! Coca-Cola Company (U.S. stocks: KO) Chief Executive James Quincey said that the company intends to increase prices because of the rising cost of goods. Although he did not explicitly say which products will increase prices, but has caused a hot debate. Some fans laughed that it was the “end of the world”, and some Pepsi supporters “gloated” and praised the good news, laughing that “it’s a good thing I drink Pepsi”.
The news drew fire on Twitter, with many netizens denouncing Coca-Cola for laying off workers, but the CEO and management were paid extremely high salaries, deriding the “fat top and thin bottom” as the only way to increase costs, and some even said they would not drink Coke again.
Quincey said in an interview with the U.S. media, in response to the rising cost of goods, it is expected that next year may need to increase prices, but the company did not disclose which products under the company will increase prices and the rate of price increases. Foreign media said that although the price increase can improve Coke’s profits, but by the new crown pneumonia (Chinese communist virus) epidemic, consumer purchasing power suffered a big blow, the news undoubtedly increased the pressure on consumers.
The report said that Coke has invested more resources in producing colas in home packaging to attract consumers who stayed at home due to the epidemic. For example, during the epidemic, both Coca-Cola and rival Pepsi are vigorously marketing finer cans of colas, which bring higher average profits. Coca-Cola reported first-quarter revenue that beat Wall Street expectations, with the company saying demand in March was back to pre-epidemic levels.
Coca-Cola’s price increase for the last time was in 2018, when the company explained it was influenced by the Trump administration’s tariff hike on aluminum.
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