In today’s Wall Street Journal, there’s an article about how soda profits are going down because people aren’t buying those 20 FL OZ bottles of soda at the grocery store check out stand or convenience store or vending machine as much as they used to. The soda makers blame health concerns, aging baby boomers’ waning thirst for giant-size sodas and the softening economy. Maybe they should look through the eyes of their consumers and they’ll see the problem.Â
Take a look at this graphic. See anything funny? (Hint: It’s in red.)
Do you see how overpriced those 20 FL OZ bottles are?! By the ounce, they’re less than a third of the size of a two liter bottle, yet they cost over three times as much. I remember when those 20 FL OZ bottles at the grocery store check out stands were about 89¢. That was a reasonable price and it wasn’t that long ago! Then, they went up to 99¢. Still reasonable, I think. Then, $1.09. Now, they’re really pushing it. I’ve recently seem them as high as $1.49 at the grocery store.
If you watch the sales, you can get a 12 pack of cans for around $2 (17¢/can) or a two liter for around 80¢. Of course, those 20 FL OZ bottles never go on sale because they’re an impulse buy. But, at the ‘per ounce’ price, they should cost about 65¢, not $1.49.
To win back sales, several Coca-Cola and Pepsi bottlers are conducting pilot tests on a variety of bottle sizes they hope will appeal to consumers put off by the 20-ounce bottle or looking for a cheaper option.
They’re selling colored, flavored sugar water. Maybe they ought to just try lowering the price back into reality.
