[Global Network Comprehensive Report]After three years, Coca-Cola is about to increase prices. Coca-Cola CEO James Quincy recently stated that the company intends to increase product prices due to rising raw material prices.
“We have good hedging measures in 2021, but the pressure in 2022 is increasing, so prices must rise.” Quincy said that Coca-Cola intends to “wisely” manage price increases, such as using different packaging. It gives consumers different price choices, but it has not disclosed the specific products that will increase prices. It is reported that the last time the company announced a price increase was in 2018.
On April 19, The Coca-Cola Company announced its corporate financial report for the first quarter of 2021. The financial report showed that Coca-Cola’s revenue in the first quarter increased by 5% year-on-year to 9.02 billion U.S. dollars. The company’s net profit was 2.25 billion U.S. dollars, which was a 19% drop from 2.78 billion U.S. dollars in the same period last year. It is reported that in March of this year, its customer demand has reached the level before the epidemic, but Coca-Cola executives emphasized that the global recovery is uneven.
Regarding the price increase of Coca-Cola, Chinese food industry analyst Zhu Danpeng explained that the price increase of Coke may lead to a general increase in the beverage industry. In the case of rising raw material costs, small and medium-sized enterprises will fall into a “dilemma” if they do not follow the trend and increase prices. Shuffle or start from here.
How will the price increase affect consumers? Zhu Danpeng believes that the current domestic consumption upgrade trend is obvious. There are many high-priced products in the beverage industry. The price increase of Coca-Cola is generally only a few cents, which has limited impact on consumers. The public is more sensitive to brands and categories.
Netizens have different opinions, “According to the current level of productivity, Coke is really not expensive, right? There are too many drinks worth five, six, seven, eighty or ninety yuan, and Coke is considered a cheap drink.” “The price has also increased, and it is also carbonated. Drinks, I’d better drink Pepsi.”
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