How tiny Coke cans means less guilt but bigger profits
Americans want to cut back on soda, and they're willing to pay more to do it.
Americans want to cut back on soda, and they're willing to pay more to do it.
With people drinking less soda amid health concerns, Coke and Pepsi are pushing smaller cans and bottles that contain fewer calories and, they say, induce less guilt. But those cute little cans can cost more than twice as much per ounce.
The focus on pushing smaller packages signals a shift from the past couple of decades, when beverage makers measured success by the sheer volume of soda they sold. Yet soda consumption has declined persistently in recent years, with public health officials blaming it for making people fat and calling for special taxes and even warning labels on cans.
Instead of fighting what seems to be a losing battle, Coke and Pepsi are pushing smaller cans and bottles saying the tiny sizes cater to people's desire for more modest servings. "Coca-Cola is so delicious, but it's like sun tanning or cigarettes -they're these wonderful things that we now know are horrible for us," said Lauren Utvich, a 31-year-old food stylist in New York.
Coke's North American president Sandy Douglas said the health and wellness trend has set up "a tremendous opportunity for the Coca-Cola brand with our smaller packages".
He noted a regular 12-ounce can of Coke on average sell for US31 cents. By comparison, a 7.5-ounce mini-can sells for US40 cents. That translates to US2.6 cents-per-ounce for a regular can, versus US5.3 cents-per ounce for the mini version.
Coca-Cola said that while it may be selling less soda, smaller packs are pushing up revenue. Sales of Coke's smaller sizes were up 9 per cent last year through October, Douglas said. By comparison, sales of its 12-ounce cans and 2-litre bottles edged up 0.1 per cent.
