Coke Profitablility

[Chefdavis]

In the Thursday January 9th Wall Street Journal, there is an article called Cracking China's Market. The article discusses how Kodak, Yum Brands, and a few other companies are doing in China's newly opened markets.

Coke which has invested 1.1 Billion and has been profitable for the last eight years has recently decided on a new strategy to be profitable in the smaller markets. The strategy-----"Coke's solution: ramp up its business in returnable bottles.....because bottles and crates can be reused many times, brings the price of the product down" This strategy will allow Coke to reach more of the Chinese market.

Why the hell can't they use some of the International market sense here?

[SURGE]

I hear ya! Funny thing is I have always heard that returnables arnt really that profittable and htats why they are so rare. Hopefully Coke will rethink their current US strategy regarding refillable/returnables.

[Terry K]

Originally posted by SURGE:
I hear ya! Funny thing is I have always heard that returnables arnt really that profittable and htats why they are so rare. Hopefully Coke will rethink their current US strategy regarding refillable/returnables.In the US they're not profitable mainly because of labour cost.

[Ron Swedelson]

Yeah, go down to Mexico, there is a reason why they are all in returnable bottle. If they can get the labor cheap, its much better and cheaper than to produce plastics over and over again.