ST. PETERSBURG, Fla. -- Is the 12-pack of soda the next victim of rising food prices and more frugal times? Is the 20-ounce PET bottle of soda on its way out? Two tests by the two major soda manufacturers could decide those questions in coming months.
Coca-Cola is testing 16-ounce bottles of its leading soda brands in some markets with a premarked price of 99 cents, Tiffany Stone, Coke 's group director of small store commercialization strategy, told CSP Daily News.
According to the company, value-conscious consumers are snapping up the 16-ounce “Chill” bottles in select [image-nocss] markets. The immediate-consumption package, which is meant to be stocked outside the cold vault, is being tested in Coca-Cola Classic, Coke Zero, Diet Coke and Sprite.
According to Stone, retailers in the test markets have seen 16% increases in beverage traffic due to the new packaging size. Sources say PepsiCo may begin a similar test shortly.
Meanwhile, Pepsi Bottling Group kicked off a test in Florida this week that replaces the most popular way of buying soft drinks—the 12-pack—with an 8-pack, according to a report in the St. Petersburg Times.
Closely watched and expected to be copied elsewhere by Coca-Cola, the test is the latest from foodmakers who in the past year rejiggered almost half of all package sizes or reformulated ingredients to mask higher prices, the newspaper reported.
With the Department of Agriculture forecasting food prices will jump 6% this year, the job is far from over. Even as commodity prices begin to stabilize, manufacturers are coping with higher energy prices such as gas for delivery, electric bills and oil-based plastic. In fact, Pepsi launched the test in 20% of the country in anticipation its 8-packs will seem like more of a value as prices keep rising.
Pepsi's prices have not gone up as fast as the company's 11% spike in expenses. Meanwhile, U.S. can sales volume slumped 6% as people buy fewer soft drinks and bottled water or shift to off brands.
The tests cross the entire Pepsi line, including Mountain Dew, Sierra Mist and Lipton Brisk.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.