Oh no! You know there’s something wrong with the economy when people stop buying (comparatively) expensive 20 oz bottles of Coke. The Wall Street Journal says that sales of Coke’s biggest profit-maker are down and its affecting the company’s bottom line.
From the WSJ:
Sold in corner groceries, vending machines and other outlets since the early 1990s, soft drinks in 20-ounce plastic bottles revitalized U.S. sales for Coca-Cola and PepsiCo Inc. by getting Americans to drink larger servings. Because they are often sold at prices similar to a two-liter bottle, they have also been highly profitable for the companies’ bottlers.
Now, health concerns, aging baby boomers’ waning thirst for giant-size sodas and the softening economy are taking the fizz out of the 20-ounce bottle. While U.S. soda sales in major retail channels overall declined 3.5% in the first quarter, convenience-store sales dropped 4.2%, according to Beverage Digest, an industry publication. The 20-ounce bottle accounts for most convenience-store soda sales.
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 to cushion the blow of high food and energy prices.
Why have you stopped buying 20 oz Cokes? The WSJ says that Pepsi is testing a 16 oz model. Will you buy that?