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| Edited By: Shailaja Sharma |Source: DNA |Updated: Mar 18, 2018, 02:37 AM IST
Pushed by rising raw material and packaging costs, Coca-Cola India has decided to raise prices on its beverage portfolio this summer.
The hike, which will be to the tune of 12-15%, will especially affect Coke, Fanta, Thumbs Up, Limca, Sprite and Maaza packed in PET bottles. Prices of 200 ml and 300 ml glass bottles will go up only marginally.
“Rising input costs have forced our bottling partners to undertake marginal price increases on certain packs in some markets. We continue to offer a range of products at varying price points to consumers,” a Coca-Cola India spokesperson said.
The company’s PET packaging cost has gone up by 60% and that of other raw materials has risen significantly too.
A year ago, Coca-Cola raised prices 9-20% citing rise in commodity prices and those of the ingredients for its beverages.
While the company tried absorbing the increase in costs for a while, it decided to pass them to consumers in summer now.
As a result, the 500 ml and 600 ml bottles that were being sold at Rs22-24 will now cost Rs25 or more. The promotions that the company started on larger bottles of 1.5 and 2 litres last year have also been withdrawn. The company is also evaluating new bottle sizes that will give it pricing flexibility.
While the company is raising prices, in a rare instance, it has slashed the price of its Minute Maid Pulpy Orange brand in some markets by 15%.
The Rs20 pack of 400 ml now costs Rs17. When Coca-Cola India first launched the brand in India, it was priced at Rs25 for 400 ml.
The price cut could be a temporary to push the brand in some markets. The company has also started pushing cans at Rs20 in the recent months, a category that was earlier priced in the Rs25 segment.
In a move to cater to the bottom-of-the-pyramid, the company has also recently re-entered the powdered drink segment, selling it under the Fanta brand at Rs5 — a price point that may not be possible in the ready-to-drink beverage segment given the surging input costs.
