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View Full Version : More on Cokes test of 16oz and 24oz single serve



drpep
05-06-2008, 09:10 PM
USA Today has an article in today's (5-6-08) Money section on Coke and Pepsi testing smaller single serve packages. The Coke Consolidated test that was posted here earlier was mentioned. Also mentioned was CCE will be testing 16oz cans and bottles at .99 cents and PBG will be testing .99 cent 12oz and 16oz in select markets by Memorial Day. The article said that 7-11 is not on board for Cokes tests for dumping 20oz and has their own plan to increase sales of single serve

iowacity
05-06-2008, 10:54 PM
Here's a link, BTW:

Coke, Pepsi offer smaller drinks for less - USATODAY.com (http://www.usatoday.com/money/industries/food/2008-05-05-pepsi-coke-99-cents-12-ounce_N.htm#discov)

Android
05-07-2008, 12:23 AM
So they are going to just push the 12oz bottles they are currently selling in multipacks as singles now? Several years ago, I remember seeing some small C-stores in Colorado "break" 16oz PET 6-packs of Pepsi products and sell them singly. They weren't supposed to that, of course, but I remember seeing them.

greg
05-07-2008, 11:10 AM
So they are going to just push the 12oz bottles they are currently selling in multipacks as singles now? Several years ago, I remember seeing some small C-stores in Colorado "break" 16oz PET 6-packs of Pepsi products and sell them singly. They weren't supposed to that, of course, but I remember seeing them.

Same thing happend to the 24oz Pepsi Pet 6-packs.

Ingles Supermarket in the South would have them on sale for 2 $4- That is essentially a case (volume wise). The independent C-store operators would go in there and blow them out and sell them in thier stores as singles for the same price as a 20oz.
What it came down to was the independent would essentially be buying a case of 24oz singles for roughly $4.50(incl Tax) instead of buying the 20oz case for +/- $20

meetingpeopleiseasy
05-07-2008, 11:36 AM
This seems more like a trick, cause I could see myself buying the $1.49 24oz bottle over the smaller cheaper bottle.

popologist
05-07-2008, 12:44 PM
i find it a bit suspicious that, both, coke and pepsi are trying this at the same time. aren't their laws against that?

basically, it sounds like what they're gonna do is give us less and charge the same price...

fusion
05-07-2008, 01:10 PM
Do the math.

99 16oz = .061875/oz

$1.49 20oz = .0745/oz
$1.39 20oz = .0695/oz
$1.29 20oz = .0645/oz
$1.19 20oz = .0595/oz

20oz are mostly $1.49 in my area. So the 16oz bottle will be a lot better deal.

greg
05-07-2008, 02:34 PM
Look at the big picture:
Both Coke and Pepsi have made announcments to "Go Green" essentially. By offering 16oz products at a cheaper price it looks like the consumer wins by getting a cost per oz savings. However, in reality they actually could do more volume but SHOW that they used less plactic thereby creating the idea of them being better for the environment. -----Environmental Corporate Stewarship
Furthermore the price strategy is in play: a 16 oz will be recognized as the new single serve and consumers will get used to it, eventually the price will creep up to a $1.09, $1.19, and so on just as the 20oz has.

It is corporate management manipulating the psychology of the consumer. Briliant idea if you ask me.

Another fact is the absurd attention that the beverage companies are getting and being held responsible for the obesity epidemic in the United States. By offering smaller portions and a better price they will not lose any customers while still getting the benefit of saying they are doing their part for better choices( or at least offering choices with fewer overall calories). If some guy now buys 2 16oz drinks to replace the 4oz he is losing then the manufacturer wins yet again.


I for one can not finish a 20 oz soda so rarely do I ever buy one. 12 oz is enough........but for some reason a Quart of beer goes down just fine!!! LOL

Supra TT
05-07-2008, 08:58 PM
I believe the 16oz will do great...... .99 is a great price point that people look for

drpep
05-07-2008, 09:32 PM
Both Coke and Pepsi already did this in the Carolinas several years ago. Coke had 13.2oz bottles and Pepsi had a smaller bottle.

francoenergy99
05-07-2008, 09:40 PM
I liked those 8oz bottles anyone remember them, they were awesome!

Cokeologist
05-08-2008, 09:27 AM
Does anyone know where the 16oz Coca-Cola cans mentioned in the USA Today article will be available?

Mr Zabe
05-08-2008, 10:59 AM
Question?
Will the Big Three mess with the loss leader
(value added) 2 ltr bottles?

francoenergy99
05-08-2008, 02:13 PM
They should make some 3ltr Deit Coke bottles more value right there!

DrPepperYummy
05-08-2008, 03:19 PM
There is a reason for trying smaller sizes... it has nothing to do with looking green by using less plastic, it has nothing to do with obesity in america, it has nothing to do with trying to give a better per ounce value... it has everything to do with 20oz sales being close to 50% of the profits for the companies and they are hurting bigtime due to the economy, nobody is walking into c-stores to get that 20oz because they just filled up their tank to the tune over $40 or more...

99 cents is like the magic price point for most single beverages... especially in coolers... as everyone slowly crept over 1.09 to 1.19 to 1.29 and now I see a lot of 1.49's... sales have just gone down the ****ter... going back to the magic price point where people seem to pull the trigger on the purchase is the goal... the only way to do that without cutting profits, is to cut costs in the size of the serving.

They want the customers back in buying single serves and the only way to do it these days is shrink the size and hit the magic price point that gets them to pull the trigger on the purchase... some buyers could care less about price they'll but it every morning or afternoon, but the majority of buyers are now beocming aware of waste in their budget and those represent the majority of people, so thats who they need to appeal to with a price... "its just a buck".

(personal example, one account would sell through historically 70 cases a week in singles at 99 cents, the good ole days... now at 1.39 we're down to about 30 cases a week.. other vendors show similar results, believe me I was wondering who was stealing my sales, turns out the economy stole them.)

It just happens to be a nice side effect the companies could now say they are being green and reducing size and use, and helping fight childhood obesity by reducing serving sizes... but in reality it comes down to lost profits from lost sales as a result of the price point tipping the wallet closed instead of open.

DrPepperYummy
05-08-2008, 03:32 PM
They should make some 3ltr Deit Coke bottles more value right there!

Expect to see 1.5liters popping up more and more often and replacing 2liters in more markets... I believe coke did this in new york if my memory serves me, other vendors are now testing these packages... in an attempt to hit that magical 99 cent price that used to be standard years ago... (now 1.25 is a sale price!) Less weight per case, less cost to deliver, less cost to produce, magical price point to trigger consumers... better margins and boost on sales in the cheaper to make packages versus cans that will continue to increase in cost as metal demands rise in asia.

I expect to see this more nationwide in the next couple years since pricing won't be going down on metals or other products... (although I could be wrong and we'll just see 1.99 2liters soon anyhow, once that seems like a bargain compared to 4.99 12pack cans in the near future)

fusion
05-08-2008, 04:27 PM
Good insight in that post.

If anyone's noticed, ice cream has shrunk again as well - I saw 1.5L/48oz Edy's the other day.

NRGSLLR@
05-08-2008, 06:03 PM
What you guys are missing is the retailer's reaction to this move. I met with several this week, all of whom are vehemently opposed to this move to $.99 it's more of a move to manipulate retailer margin than anything else. Even if the retailer pays $.50 per unit and his margin is 49% he is still only making $.49 per unit sold. however if he pays $.90 a unit and retails the 20oz at $1.49 he makes $.59 a unit. Some do even better because of rebates and targeted retail price off promotions. In short I don't think the retail commuinty will stand for the loss in penny profits.

drpep
05-08-2008, 09:31 PM
As the USA Today articles mentioned, 7-11 is not interested in dumping the 20oz single serve.

drpep
05-08-2008, 09:34 PM
Good insight in that post.

If anyone's noticed, ice cream has shrunk again as well - I saw 1.5L/48oz Edy's the other day.

I wondered what was going on with ice cream, I've seen store ads and sale signs advertising Edys in 48 to 56 oz containers but never saw the 48s.

popologist
05-09-2008, 07:46 AM
Good insight in that post.

If anyone's noticed, ice cream has shrunk again as well - I saw 1.5L/48oz Edy's the other day.

they better not mess with my ice cream pints!!!

Cokeologist
05-09-2008, 08:57 AM
Does anyone know where the 16oz Coca-Cola cans mentioned in the USA Today article will be available?

greg
05-09-2008, 12:52 PM
There is a reason for trying smaller sizes... it has nothing to do with looking green by using less plastic, it has nothing to do with obesity in america, it has nothing to do with trying to give a better per ounce value... it has everything to do with 20oz sales being close to 50% of the profits for the companies and they are hurting bigtime due to the economy, nobody is walking into c-stores to get that 20oz because they just filled up their tank to the tune over $40 or more...

99 cents is like the magic price point for most single beverages... especially in coolers... as everyone slowly crept over 1.09 to 1.19 to 1.29 and now I see a lot of 1.49's... sales have just gone down the ****ter... going back to the magic price point where people seem to pull the trigger on the purchase is the goal... the only way to do that without cutting profits, is to cut costs in the size of the serving.

They want the customers back in buying single serves and the only way to do it these days is shrink the size and hit the magic price point that gets them to pull the trigger on the purchase... some buyers could care less about price they'll but it every morning or afternoon, but the majority of buyers are now beocming aware of waste in their budget and those represent the majority of people, so thats who they need to appeal to with a price... "its just a buck".

(personal example, one account would sell through historically 70 cases a week in singles at 99 cents, the good ole days... now at 1.39 we're down to about 30 cases a week.. other vendors show similar results, believe me I was wondering who was stealing my sales, turns out the economy stole them.)

It just happens to be a nice side effect the companies could now say they are being green and reducing size and use, and helping fight childhood obesity by reducing serving sizes... but in reality it comes down to lost profits from lost sales as a result of the price point tipping the wallet closed instead of open.


Gee! Thanks for pointing out what an 8th grade economics student already knows. If you read carefully you would have noticed that the price per oz issue was addressed in my response. Yet I repeat, I said: Look at the Big Picture.
We all know that business is a for profit venture, however, with companies such as Coke and Pepsi it also comes down to Corporate Stewrdship and what they GIVE BACK to the community as well as how they are percieved in the community.
And believe me, Coke and Pepsi are not making short term decisons based on recent economics to revamp their whole "portion" portfolio. It is deeper than just dollars and cents.
Also take note that the issue also revolves on slower advancing volume levels in the CSD market over other segments. Coke and Pepsi are trying to energize the CSD market by offering "greener" and more "intellectual Choices" to their consumers in a segment that has had little innovation in attracting and maintaing consumers.

Mr Zabe
05-09-2008, 01:43 PM
Gee! Thanks for pointing out what an 8th grade economics student already knows. If you read carefully you would have noticed that the price per oz issue was addressed in my response. Yet I repeat, I said: Look at the Big Picture.
We all know that business is a for profit venture, however, with companies such as Coke and Pepsi it also comes down to Corporate Stewrdship and what they GIVE BACK to the community as well as how they are percieved in the community.
And believe me, Coke and Pepsi are not making short term decisons based on recent economics to revamp their whole "portion" portfolio. It is deeper than just dollars and cents.
Also take note that the issue also revolves on slower advancing volume levels in the CSD market over other segments. Coke and Pepsi are trying to energize the CSD market by offering "greener" and more "intellectual Choices" to their consumers in a segment that has had little innovation in attracting and maintaining consumers.
Ok. Granted your macro view of the Big Three soda pop industry makes good sense.
I see the soda pop business in the micro short term model.
This fad/trend? of "Green products" is just that. Given a choice of value vs "greeness" most
average American's will demand value. IMO (yes I use short abbreviations and I'm just fine doing so.LOL)
this entire "green" movement,container size boils down to solidifing profits for the Big Three
at the cost of shaving profits of end vendors.

BhamCokeman
05-09-2008, 06:57 PM
<<Expect to see 1.5liters popping up more and more often and replacing 2liters in more markets... I believe coke did this in new york if my memory serves me, other vendors are now testing these packages... in an attempt to hit that magical 99 cent price that used to be standard years ago... (now 1.25 is a sale price!) Less weight per case, less cost to deliver, less cost to produce, magical price point to trigger consumers... better margins and boost on sales in the cheaper to make packages versus cans that will continue to increase in cost as metal demands rise in asia.

I expect to see this more nationwide in the next couple years since pricing won't be going down on metals or other products... (although I could be wrong and we'll just see 1.99 2liters soon anyhow, once that seems like a bargain compared to 4.99 12pack cans in the near future)>>

I really don't know about the 2 liter. I've told some, but June 16th we are rolling out a new design 2 liter bottle. Uses a little less plastic, and therefore hopefully will cost a little less. We're the test market for it, and it's a contour 2 liter bottle shaped just like the grip bottle. And it sucks sets wise because it's 3/4 of an inch taller.

PepsiBlue
05-18-2008, 03:48 AM
Good insight in that post.

If anyone's noticed, ice cream has shrunk again as well - I saw 1.5L/48oz Edy's the other day.
Yep, Breyes and Edys is now in 1.5 quarts.
10-15 years ago if im corerct wasnt it in half gallons!? I know its been in 1.75 quarts for a couple years now.

greg
05-19-2008, 05:40 PM
What you guys are missing is the retailer's reaction to this move. I met with several this week, all of whom are vehemently opposed to this move to $.99 it's more of a move to manipulate retailer margin than anything else. Even if the retailer pays $.50 per unit and his margin is 49% he is still only making $.49 per unit sold. however if he pays $.90 a unit and retails the 20oz at $1.49 he makes $.59 a unit. Some do even better because of rebates and targeted retail price off promotions. In short I don't think the retail commuinty will stand for the loss in penny profits.

Good Points...but how can the retailer do anything about it? If Coke and Pepsi want to change packaging then the retailer is at the mercy of the manufacturer. Sure, they can go to another brand but then they may( and probably will ) lose customers.
I just don't see end users flipping their brand loyalty over this. The retailers will lose in the long run if they choose to fight it and refuse the smaller package due to margin manipulation.

DrPprLvr
05-25-2008, 07:49 AM
Began manufacturing the 16 oz can versions of most of the core Dr Pepper/Snapple Group sodas on Friday May 23 in North Florida. Expected sale is also suppose to be $.99

Scooby
06-02-2008, 06:34 PM
I believe the 16oz will do great...... .99 is a great price point that people look for

But what about next year when they have you all in the 16oz. bag,( sellers profit will shrink again) the magic one dollar level is a thing of the past, its all about who has the money to blow on something with no nutritional value... besides everyone is saving thier money for one of those new fangled locking gas caps ....again :-) Hey Coke is cheaper by the gallon than gas for the first time in a real loooong time. Imagine that!

lordmadone
06-02-2008, 09:47 PM
An excellent point my plant manager brought up about this is..how can you expect to make up such a HUGE gap of money loss when lowering the amount you are getting and the price point as well. No way that we could sell it to the tune of what we want to get an increase in fridge sales out of it.

Cokeologist
06-06-2008, 08:57 AM
Has anyone seen the 16oz Coca-Cola cans yet?

jmyjunk
06-06-2008, 01:55 PM
Has anyone seen the 16oz Coca-Cola cans yet?

Yes, While I was in Santa Monica I saw Classic,Zero,Diet in these cans. They have the big sun drinking a coke on it as well. I had also spoted Dr. Pepper in the same size as well.

amyers
06-07-2008, 11:12 PM
I haven't seen bottles or cans-- guess I need to go look.

fusion
07-29-2008, 02:37 PM
The bottles seem to be an East coast thing, and the cans a West coast thing.

Supra TT
07-29-2008, 07:36 PM
any 16oz Camo. Vault cans out there still? If so where

amyers
07-30-2008, 05:42 PM
any 16oz Camo. Vault cans out there still? If so where

I haven't seen them, I've been looking for the VAULT Country 16oz cans, anyone find them?

mjb1124
07-30-2008, 07:24 PM
I saw 16 oz. bottles of Diet Coke and Coke Zero at a 7-Eleven about two or three weeks ago.

fusion
09-06-2008, 11:36 PM
I am going to North Carolina and Western Virginia in another week or so, I hope to find these 16oz bottles (we have Coke, Zero and Diet in my area, but no other flavors).

Ram0n C0keah0lic
09-07-2008, 04:52 AM
About single serve bottles, a couple of weeks ago arrived here at Ags. this new 400 ml Coke bottle with grip bottle design...

http://farm4.static.flickr.com/3282/2834865117_1bc17b32aa.jpg

Sizes of Coke we have here:

Returnables:
6.5 oz.
355 ml
500 ml
2 liter PET
2.5 liter PET

Non-Returnables:
8 oz. can
8 oz. glass bottle
355 ml can
400 ml PET
500 ml PET
600 ml PET
1 Liter PET
1.25 Liter PET
1.5 Liter PET
2 liter PET
2.5 liter PET
In other areas:
500 ml glass bottle
710 ml PET
3 Liter PET

amyers
09-14-2008, 09:12 PM
Looks like CCBCC is expanding their test market of these 16oz/24oz bottles, coming to some new areas October 6th.

fusion
09-15-2008, 04:54 PM
I ended up only going to Western Virginia because of the insane gas price rise, but I did see the 16 and 24 ounce packaging in the c-stores. $.99-$1.09 for the 16oz, $1.49-$1.59 for the 24oz. Full line of flavors in 16oz, core flavors in 24oz.

I could see this going nationwide if CCBCC reports good results with their extended rollout. I do know that CCE extended their availability of 16oz Coke/Diet/Zero until probably early next year.

amyers
10-04-2008, 11:37 PM
Starting Monday a live launch of the 16oz/24oz happens here, it should be great for sales in a market this size. We've started pushing out 16oz/24oz this weekend and rounding up the current in-store 20oz stock to take to vending and grocery. Below is a picture of the current VAULT family (16oz, 20oz, 24oz, and 1L):

http://i12.photobucket.com/albums/a217/AaronMyers/VAULT/utf-8BSU1HMDAxNTcuanBn.jpg

Ram0n C0keah0lic
10-12-2008, 10:21 PM
I went a month ago to San Diego, CA, and dang!... it was really difficult to find Vault, I only found it in 20 oz. bottles at a liquor store near our hotel in Chula Vista, CA.


Has anyone seen the 16oz Coca-Cola cans yet?

BTW here in Aguascalientes there were released a week ago the new 16 oz. cans of Coca-Cola, Coca-Cola Zero and Sprite... and the Coca-Cola Zero cans have the logo of the MTV latin american VMA's that will take place next wednesday at Guadalajara, Jalisco.

Ram0n C0keah0lic
11-15-2008, 04:05 AM
Found a pic at flickr of the 16 oz. Coke bottle...

http://farm4.static.flickr.com/3004/3030003895_13ef3102d9_b.jpg

Mr Zabe
11-15-2008, 04:35 AM
I understand the down sizing to the 16 oz bottle.
It just seems that the 16.9 bottle is embedded in my brain.

dahojo
11-25-2008, 12:15 PM
Does any one know what Coke is charging for the 16 oz Coke?
Thanks

fusion
11-25-2008, 05:48 PM
The CCE produced 16oz bottles and cans are prepriced at 99. When I was in CCBCC territory, the 16oz are not prepriced, and they were 99-$1.09. I think the Vault flavors were 79.

dahojo
11-25-2008, 05:55 PM
What about case cost????????????

amyers
11-28-2008, 04:01 PM
The CCE produced 16oz bottles and cans are prepriced at 99. When I was in CCBCC territory, the 16oz are not prepriced, and they were 99-$1.09. I think the Vault flavors were 79.

That's surprising, here they can not change the price of the 16oz/24oz. They're required to keep the 99 cents/1.49 pricing