Sales of 20-ounce soft drinks are worse than flat
Posted
May 28 2008, 03:17 PM
by
Karen Datko
Rating:
Maybe the preaching of frugalists has finally been heard, or people have found their common sense or have less money -- but fewer are buying those overpriced 20-ounce bottles of Coca-Cola and other Coke-brand drinks dispensed by vending machines and convenience stores.
The Wall Street Journal reported today that bottler Coca-Cola Enterprises Inc. reduced its second-quarter earnings outlook based on weaker-than-expected sales of that size. The WSJ says:
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.
Not just Coke has been affected. The WSJ reports that sales of what's known as "pop" in Montana and Southwestern PA (that's Pennsylvania for people not from that commonwealth) dropped 3.5% in the first quarter of 2008, and 4.2% in convenience stores alone, where the 20-ounce bottle ruled. Coke and PepsiCo Inc. are now testing the public's acceptance of smaller bottles.
How many times have you read a personal-finance blog that urged you to save money by drinking water -- and not the bottled kind? Get a filtration system, if you must, and refill your to-go bottle. Our partner blogger Trent Hamm at The Simple Dollar adds that if you drink a big glass of water before a meal, you'll eat less, saving money and reducing calorie flow down the old pie hole.
