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Aluminum Prices Up Up and Away !

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  • Aluminum Prices Up Up and Away !

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

  • #2
    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!!!!!!
    Whether you think can or think you can\'t, you\'re probably right!

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    • #3
      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 ]
      Don't worry, be happy. Meher Baba

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      • #4
        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
        Whether you think can or think you can\'t, you\'re probably right!

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        • #5
          Thanks Greg,
          I guess I will cancel the 500 cubes I have on retainer with my local Pepsi bottler. LOL
          Don't worry, be happy. Meher Baba

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          • #6
            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.

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            • #7
              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?

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              • #8
                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.
                If what you did yesterday still looks big, you haven't done much today.

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                • #9
                  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.

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                  • #10
                    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.
                    Whether you think can or think you can\'t, you\'re probably right!

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                    • #11
                      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

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                      • #12
                        yeah people aren't going to like the price increases but it will have to be done - cans dont make any money anyways
                        Vault Sucks, Do The Dew

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                        • #13
                          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??

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                          • #14
                            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.
                            Whether you think can or think you can\'t, you\'re probably right!

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                            • #15
                              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.

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