PDA

View Full Version : Aluminum Prices Up Up and Away !



SumPoosieCat
11-20-2006, 02:43 PM
Has anyone else got the news that cans are going up nearly 20% in price starting Jan. 1st.

greg
11-20-2006, 04:06 PM
BRO!!!! We used to bottle REDLINE in a thick walled aluminum can. It was awesom eto say the least. Then the prices started going up but we hung in there even re-newing our contract with the manufacturer. The AB decided to come out with their 16oz Aluminum bottles and pretty much just blew us out of the water. They were willing to pay slightly more per unit than us so who do you think got put in the front of the line? At any rate, after out of stocks twice we had to make a decision to go to plastic bottles. It really sucks but the World Market, especially China, is eating up resources and if you want a piece of them you have to PAY!!!!!!

Mr Zabe
11-20-2006, 04:12 PM
Greg if the price goes up by 20%, will the retail price of can soda pop go up by 20% as well? How sensitive is price of materials to retail price increases? Tks

[ 11-20-2006, 03:13 PM: Message edited by: Mr Zabe ]

greg
11-20-2006, 06:26 PM
Originally posted by Mr Zabe:
Greg if the price goes up by 20%, will the retail price of can soda pop go up by 20% as well? How sensitive is price of materials to retail price increases? Tks Not necessarily. After all you still have a HUGE profit margin on single serve 20oz drinks. Those things are cash cows.
Furthermore, the BIG GUYS, Coke, Pepsi, DR Pepper, COTT etc buy aluminum on the futures market so they have some cushion a few months down the road. However, it will end and prices could go up somewhat but that may be offset by Pepsico and Coke droppoing their price on the syrup to their bottlers.

In the end I do not know but I suspect there will be a slight tick upward to offset the cost.

Now keep in mind that TTB does not buy near the volume of cans/aluminum that Pepsi does( I saw a stat last night saying that there are over 35mm cans of Pepsi sold each day!) so Pepsi may incur a very small increase of say 1-1.5 cents per unit. Possibly less than that.

G

Mr Zabe
11-20-2006, 06:55 PM
Thanks Greg,
I guess I will cancel the 500 cubes I have on retainer with my local Pepsi bottler. LOL

SumPoosieCat
11-22-2006, 08:30 AM
I know Greg... I used to have SP in a glass bottle but it got too expensive. I decided to go to the 16 ounce can and soon will have an 8 ounce as well.

Ron Swedelson
11-22-2006, 11:37 AM
TTB, you can't go the 8oz, no one wants that little girly can, right?
Anyword on it comming to market here in Northern Cali.? Ill be in Vegas over the holiday, can I find it there?

the saint
11-22-2006, 07:07 PM
Originally posted by Mr Zabe:
Thanks Greg,
I guess I will cancel the 500 cubes I have on retainer with my local Pepsi bottler. LOL you could go ahead and buy them and ship them to the chick in MI. but then again one of them wanted 4 trailer loads of cubes 500 wouldn't make much of a dent in that. :D

Blue Efficacy
11-23-2006, 12:34 PM
Originally posted by Mr Zabe:
Greg if the price goes up by 20%, will the retail price of can soda pop go up by 20% as well? How sensitive is price of materials to retail price increases? Tks The container is but one of many things you pay for when you buy a beverage.

greg
11-23-2006, 03:49 PM
Originally posted by Blue Efficacy:
</font><blockquote>quote:</font><hr />Originally posted by Mr Zabe:
Greg if the price goes up by 20%, will the retail price of can soda pop go up by 20% as well? How sensitive is price of materials to retail price increases? Tks The container is but one of many things you pay for when you buy a beverage. </font>[/QUOTE]Yuo are right , there are many things you are paying for when buying a can of soda:Salaries, Marketing, equipment, rights, legal fees, uniforms, R & D, the list goes on.
But who knows what cost more: The soda in the can or the can(package) holding the soda? Of course keeping all things equal and leaving out all the things I mentioned above.

zoomjuice1
11-24-2006, 10:08 PM
It's a coincidence that I saw your post today, Greg.

Every once in a while I pick up a Redline and recently I've been wondering why I've been seeing only the plastic one.

Why I find myself wondering about stuff like that... God knows

pepsidew
11-29-2006, 08:57 AM
yeah people aren't going to like the price increases but it will have to be done - cans dont make any money anyways

NRGSLLR@
12-04-2006, 03:17 PM
The Big Guys typically take their price up every year anyway. It doesn't matter if raw materials increase or not. Regarding cans, however, we are all going to see the same increase of approximately 20%. Red Bull has already announced they are taking their price up $1.20 to their distributors. They want their distributors to keep the same wholesale???? Kind of arrogant don't you think??

greg
12-04-2006, 03:40 PM
Originally posted by NRGSLLR@:
The Big Guys typically take their price up every year anyway. It doesn't matter if raw materials increase or not. Regarding cans, however, we are all going to see the same increase of approximately 20%. Red Bull has already announced they are taking their price up $1.20 to their distributors. They want their distributors to keep the same wholesale???? Kind of arrogant don't you think?? One angle to look at this from, and that is from RB International is that by having the distributor pay more for the drink and asking them to hold pricing down then the distributor will have to sell more product to make the same margin from the previous year. Consequently higher volume means More money for RBI!!!!! WOW, What a concept. I think it may backfire on them though. I see distributors having no choice but to pass the higher cost on to the retailer and then to the consumer.

SumPoosieCat
12-06-2006, 10:54 PM
We are all in business to make money... it seems hard to believe that Red Bull believes distributors are not already hurting from increased competition.

greg
12-07-2006, 10:34 AM
Originally posted by TallThinBlonde:
We are all in business to make money... it seems hard to believe that Red Bull believes distributors are not already hurting from increased competition. Not only the competition but most RB distributors are being held to a contract that requires them to sell RB exclusively. This means that even though the business has grown substantially that eventualy the market these guys service will become staurated and stifle growth. When growth slows job cuts are imminent(sp?)Bonus slashed, perks stripped away, etc.
These guys have enjoyed the good ride but is they are not able to sell any other brands then the company will suffer as well as service reputation, and goodwill.
This goes along with my other post concerning the "speculation of a RB sale" by increasing pricing to help the bottom line to make the company attractive to investors. Perhaps Deitrich has seen the writing on the wall. IMO

SumPoosieCat
12-07-2006, 11:34 AM
Well Greg... on this board a couple of years ago all I read was Red Bull this...Red Bull that... Red Bull is No. 1... etc...

I don't read that anymore...

IMO Red Bull could greatly help its distributors by expanding their product line to include OTHER FLAVORS. If you ask anyone who does NOT drink Red Bull why they don't... they will tell you they can't stand the taste!

No one is going to argue with what Red Bull did in the USA their first 6 or 7 years. However what they have done over the last 2 or 3 years to me is just plain dumb!

Like you said... it was a good ride. Their only answer lately seems to be a bigger can.

turbojames
12-11-2006, 01:24 PM
I am a big fan of Hansens Natural, and I hope for goodness sakes they overtake RB and keep running.

SumPoosieCat
12-11-2006, 01:45 PM
Monster is number one in quite a few markets across the country. Who thought that would happen so soon.