More details leaked this week about Coca-Cola Co.’s plan to raise soft drink prices this summer, the Atlanta Jounal-Constiution reports.
Beverage Digest reported Friday that price increases of 3-4 percent are coming on July 31. Coca-Cola Refreshments, a division of Coca-Cola Co., and Charlotte-based Coca-Cola Bottling Co. Consolidated cited higher costs for inputs, according to the trade journal. Consolidated, for example, mentioned escalating prices for corn, aluminum, plastic and oil in a letter to retailers.
Coca-Cola Refreshments and Consolidated together sell about 84 percent of Coca-Cola’s bottle and can volume in the United States. The magnitude of the price increases will vary depending on the brands and packages, but price-sensitive consumers may react by buying fewer soft drinks.
Credit Suisse beverage analyst Carlos Laboy said Coca-Cola’s price increases in July might render his predictions of 2 percent volume growth this year too optimistic. But he said the changes would probably benefit the company’s earnings per share.