CHARLOTTE, N.C.-- Earlier this month, Coca-Cola Bottling Co. Consolidated, Coca-Cola's second-largest bottler, launched a test in about 1,700 convenience stores in Virginia in which it has replaced 20-oz. bottles of Coca-Cola, Diet Coke and other brands with 16-oz. and 24-oz. bottles. The 16-oz. bottles are generally priced at 99 cents, less expensive than the 20-oz. bottles. The 24-oz. size, aimed at big soda drinkers, is priced at as much as $1.49, as much as 20 cents more than the 20-oz. bottles they replaced, according to The Wall Street Journal.
The Charlotte, N.C., company said it [image-nocss] began planning tests about a year ago, when it noticed soda sales softening because of growing consumer interest in drinks perceived to be healthier. The idea was to offer consumers more packaging choices in c-stores, as in grocery stores, where they can buy 12-oz. cans, two-liter bottles and other package sizes, Mel Landis, the bottler's chief marketing and customer officer, told the newspaper.
The initiative is part of a broader effort by Atlanta-based Coca-Cola to boost soda sales by improving packaging, a Coke spokesperson told the paper.
In a test the bottler conducted in 64 stores in the Carolinas last fall, unit volume rose "significantly," Landis said.
Coca-Cola Enterprises Inc., Coke's largest bottler, is launching a similar test of the same range of bottle sizes in Virginia and plans further tests in other parts of the country, the Journal said.
Pepsi Bottling Group Inc., Pepsi's largest bottler, is testing 12-oz. and 16-oz. bottles in some markets alongside 20-oz. bottles, according to Beverage Digest, which first reported some of the tests. A PBG spokesperson said the tests will start this month.
A PepsiCo spokesperson told the paper that the move "is about giving consumers more choices, and if that leads to more frequent transactions and greater volume, it's also a win for our customers, our bottlers and us."
Coca-Cola bottling executives said it is too early to determine whether they will permanently introduce the new bottles.
Sold in corner groceries, vending machines and other outlets since the early 1990s, soft drinks in 20-oz. plastic bottles revitalized U.S. sales for Coca-Cola and PepsiCo 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, said the report.
Now, health concerns, aging baby boomers' waning thirst for giant-size sodas and the softening economy are taking the fizz out of the 20-oz. bottle. While U.S. soda sales in major retail channels overall declined 3.5% in the first quarter, c-store sales dropped 4.2%, according to Beverage Digest. The 20-oz. bottle accounts for most c-store soda sales, the report said.
To win back sales, several Coca-Cola and Pepsi bottlers are conducting the pilots on a variety of bottle sizes they hope will appeal to consumers put off by the 20-oz. bottle or looking for a cheaper option to cushion the blow of high food and energy prices, added the report.
Meanwhile, Purchase, N.Y.-based Pepsi-Cola North America is introducing its lightest 500mL flavored noncarbonated beverage bottle yet, it said in a statement. The company has reduced the plastic in this bottle by 20%, which will eliminate approximately 20 million pounds of waste from the environment. The lighter bottles will begin hitting store shelves this month.
The new bottle will be launched through established trademarks of Lipton Iced Tea, Tropicana juice drinks, Aquafina FlavorSplash and Aquafina Alive. It will be available in 12-packs and 24-packs. In addition to a 20% reduction in the plastic resin, there will be a 10% reduction in the label size and a 5% reduction in the shrink wrap film used to wrap the multi-packs.
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