No wonder why the price on the 20oz went up. It was 99 cents the first time I saw it in Price Cutter in Muskogee.

It is one hundred percent a function of profitability for the beverage distributor. Consider that the average case of cans sells at $5 and it costs approximately $2.75 - $3.00 to produce that only leaves $2 a case for transportation / delivery / promotion and profit. As you can see there is no money to be made in 12 oz cans, that is why beverage companies continue to increase the base line cost of 20oz. Once the retail got over $.99 a bottle, it really didn't matter how far over $1.00 the retail is, the consumer sees magic numbers when they look at cost. $.99 is one $1.49 is the next one the beverage companies will have to deal with when there 20oz get up to that retail. It's all a matter of consumer perception and what they feel is a fair price.

Yes, yes and yes. Convenience is the number one answer for the higher price of 20oz. Secondly, NRGSLLR is right to say there is very little profit to be made from cans. PET is the way to go if you want to make money. I believe on average, a case of 20oz product equals around $4-$5 profit for the bottler.

Convenience is the answer indeed. Also, a 2 liter is considered take-home whereas 1 liter and 20oz is considered single serve. Same reason a bottle of beer at a bar is $2.50-$3.00, and a six-pack from the store is about $6.00.