Beverage Companies Including Coca-Cola Adopts a New Trick to Boost Sales and Profitability
This week Coca-Cola reported a growth in the volumes of its soda sales in the last quarter. That news gives the company a reason to celebrate after facing the anti soda trends with the growing dislike for carbonated drinks globally.
The soda industry might just be picking up its growth once more even in the United States, which is the biggest market in the world. However, with the rising volumes of soda sales the companies are adopting a new strategy of selling their products in smaller packages.
Coca-Cola is no different; the company is adopting the new trend too. This is quite different from the earlier scenario when soft drink makers pushed people to get more by buying bigger bottles, cans or cups but that strategy has altered now as people became more conscious about health problems connected to drinking carbonated drinks.
For the soda manufacturers the opposite is working well and is also gaining more profits. They are now focusing on shipping carbonated drinks in smaller servings hoping to capture the market once more.
A professor of behavioral economics at Cornell University David Just, who studies consumer food choice, said "Certainly, they make more money per ounce this way."
A similar strategy is being followed by several other big food companies like Kraft, Campbel's Soup and General Mills to increase profitability.