Coca-Cola in multiple channels has a price increase of 3.5 yuan era or will say goodbye?

Red Star Capital Bureau reported on May 5 that after Coca-Cola entered the era of 19 yuan from 2022 yuan in 3, the price rose again.

Recently, Coca-Cola in many terminals has increased prices to varying degrees, and the prices of Coke in convenience stores, small supermarkets and different supermarkets are slightly different.

Taking the most common 500ml plastic bottle of Coca-Cola as an example, Red Star Capital Bureau visited and found that the specifications of Coca-Cola and PepsiCo sold in a chain convenience store in Chengdu were 3.8 yuan per bottle, and the cashier said that the price increase began this year. The price of Coca-Cola in Hongqi chain and Yonghui supermarket is 3.5 yuan per bottle, and some cashiers said that it has also risen to 3.5 yuan this year. In the more scattered street shops and restaurants, the price of Coca-Cola ranges from 3 yuan to 4 yuan per bottle, and one restaurant owner said that the price increased to 4 yuan per bottle last year.

In order to eliminate the impact of the difference in selling prices of different sales channels, Red Star Capital Bureau compared the prices of Coca-Cola in Tmall flagship stores and JD.com's self-operated stores, and found that the price of 24 bottles of the same specification in Coca-Cola's Jingdong self-operated stores in China was 59.9 yuan, that is, 2.5 yuan per bottle, and the Taobao platform did not search for products of this specification. According to the price comparison software, the price of Coca-Cola, the self-operated flagship store of the JD platform, rose relatively on May 5.

IN THE DISTRIBUTION CHANNEL, A BUYER IN SICHUAN TOLD RED STAR CAPITAL BUREAU THAT THE COCA-COLA FACTORY INCREASED ITS PRICE LAST MONTH, AND THE PRICE OF 24 BOTTLES 300ML COCA-COLA ROSE BY 4 YUAN.

Red Star Capital noted that in February this year, Coca-Cola said that it would further raise its commodity prices "globally" in 2, but the price increase would slow. However, as of press time, Red Star Capital Bureau has not responded to questions about Coca-Cola China, its Chinese bottlers Swire Cola and COFCO Cola, about the price increase. People close to COFCO Coke said they had not been notified of the price increase.

Although from the price of the Jingdong platform, the price of Coca-Cola in 500ml plastic bottles has not exceeded 3 yuan, but considering that an important scene of carbonated drinks is bought and drunk on the street, 3 yuan / bottle of Coca-Cola, I don't know how long it can be sold.

Low prices and perennial price stability are one of Coca-Cola's important competitiveness. Since returning to the Chinese market in 1979, the price of Coca-Cola's products has not increased significantly for more than 40 years. Guosheng Securities reported that from 1990 to 2019, the compound growth rate of Coca-Cola's product unit price was 0.42%.

The last time Coca-Cola raised prices was in April 2021, when Coca-Cola CEO James Quincey said that Coca-Cola will raise beverage prices in response to the impact of rising commodity costs, intending to adjust package sizes to really optimize price points for consumers, "We had a good hedge in '4, but because of the increasing economic pressure in '21, prices have to go up." ”

This round of price increases has had an impact on Coca-Cola's performance. According to the 2022 financial report, Coca-Cola's revenue in 2022 will be 430.04 billion US dollars, an increase of 11%; Operating profit was $109.09 billion, up 6%, and global single-case sales increased 5%. As for the "price/portfolio growth" mentioned in the earnings report, its global prices increased by 2022% in 11 and 12% in the fourth quarter.

Regarding the new round of price increases that may be opened this time, is it due to the shortage of gum arabic, one of the raw materials of cola? According to Shangguan News, in May 2023, due to the armed conflict, the market was worried about whether Sudan, which is rich in gum arabic, could continue to supply the key material of this carbonated drink. Will the tight supply of gum arabic affect the production and supply of carbonated beverage products commonly found on the market? Coca-Cola China and PepsiCo both said that it is not convenient to respond for the time being.

Chengdu Business Daily-Red Star News reporter Yu Yao Cheng Luyang