Has anyone else got the news that cans are going up nearly 20% in price starting Jan. 1st.

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!!!!!!

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 ]

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

Thanks Greg,
I guess I will cancel the 500 cubes I have on retainer with my local Pepsi bottler. LOL

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.

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?

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.

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.

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.