CONSUMER

Coke products might look a little different next year

Oct 25, 2022, 12:22 PM
To keep price-conscious customers in the fold, companies like Coke offer more packaging options. (G...
To keep price-conscious customers in the fold, companies like Coke offer more packaging options. (George Frey/Getty Images)
(George Frey/Getty Images)

(CNN) — Over the past year, Coca-Cola has experimented with bizarrelimited-time flavors and immersive online experiences. Now, it’s setting its sights on adding more varieties of cans, bottles and value packs to offer cash-strapped consumers more options — even if that ultimately means paying more for less.

“Package innovation takes a bigger role,” when shoppers are worried about spending, CEO James Quincey said Tuesday during an analyst call discussing third-quarter results. “We will be approaching ’23 with a broad innovation agenda, but with some slight weighting to packaging.”

For companies like Coke, offering more types of containers — particularly smaller ones — is a way to hold on to or draw in customers worried about spending, even as prices continue to increase.

“It’s about extending the price ladder,” Quincey said, “making sure the entry price point … becomes as low down in the price spectrum, the actual out-of-pocket, as possible.”

That’s especially important now, as Coca-Cola has seen consumers start to tighten their belts because of soaring prices.

Some shoppers have started to spend less at the grocery store. “Therefore, the price point becomes even more important than the price per liter,” Quincey said. “That’s absolutely what we’re pursuing.”

In other words, even though customers may end up paying more per liter when they buy small packages, some are willing to make that trade to get a lower price because they cannot afford the higher priced item.

Coca-Cola has already been selling smaller containers and multi-packs with fewer cans. In the third quarter, the company introduced a value collection that offers customers products in a variety of sizes. Those items, available at some stores in the US, are “helping to retain and recruit more consumers while creating value for our customers,” Quincey said.

The CEO also pointed to returnable containers as another way of lowering costs, because consumers get some money back for returned bottles and cans.

Earlier this year, the company announced a goal to sell at least a quarter of all of its beverages worldwide in refillable or returnable containers by 2030. (Coca-Cola also recently announced a change to the look of Sprite bottles, ditching its signature green for clear plastic, which is easier to recycle.)

Those strategies could help offset the impact of higher prices on consumers. The company expects inflation and volatility in the commodities market to affect its own costs, and is likely to continue to raise prices.

“There’s going to be above normal input costs,” Quincey said on CNBC’s Squawk on the Street. “So we are expecting pricing to be ahead of normal next year on top of what’s happened this year. ”

The company is eyeing other changes as well, including adding “more premium options for those that still have plenty of disposable income,” Quincey said during the analyst call.

And it plans to continue to bolster Coke Zero Sugar, a growth driver, with more marketing and other innovations.

So far, Coca-Cola’s pricing and innovation strategy appears to be working. In the third quarter, the company’s net revenues jumped 10% to $1.1 billion.


The-CNN-Wire™ & © 2022 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.

KSL 5 TV Live

Top Stories

Consumer

(KSL TV)...
Tamara Vaifanua

Financial tips to prepare for having kids

Having kids can be exciting, but it requires a lot of financial planning. Here are some smart money moves for new and expecting parents.
2 days ago
An example of letting your faucet drip to prevent freezing. (KSL-TV)...
Jed Boal

Plumbers warn of frozen pipes after cold front

When it gets this cold and stays cold, some water pipes in some homes in Utah are susceptible to freezing, leading to a costly fix for Utahns.
3 days ago
The Arizona Spike, right, is displayed next to the framed gold and Nevada spikes at the Utah Museum...
Carter Williams

1 of the 4 spikes driven at Promontory Summit fetches $2.2M at auction

The Arizona spike, which was ceremoniously driven in Utah to mark the transcontinental railroad completion in 1869, sold for a little more than $2 million during an auction that closed Thursday.
3 days ago
An apparent shortage of pharmacists is forcing CVS and Walmart to reduce the hours of its pharmacie...
Jordan Valinsky

CVS and Walmart cut pharmacy hours, close some locations earlier, citing staffing shortage

An apparent shortage of pharmacists is forcing CVS and Walmart to reduce the hours of its pharmacies, as they close earlier in thousands of locations.
6 days ago
Susan Lee Wilson, attempting to use her phone after another outage. (KSL-TV)...
Matt Gephardt

Get Gephardt: Salt Lake woman battles phone company to fix 12-year-old landline problem

You pay for phone service, so you would expect to receive phone service. But when a Sandy woman’s landline kept going dead for more than a decade, she decided it was time to Get Gephardt.
10 days ago
An image from Customs and Border Protection shows eggs that a traveler attempted to bring into the ...
Zoe Sottile

As egg prices rise, so do attempts to smuggle them from Mexico, say US Customs officials

Officers at the San Diego Customs and Border Protection Office have seen an increase in the number of attempts to move eggs across the US-Mexico border.
11 days ago

Sponsored Articles

vintage photo of lighting showroom featuring chandeliers, lamps, wall lights and mirrors...
Lighting Design

History of Lighting Design | Over 25 Years of Providing Utah With the Latest Trends and Styles

Read about the history of Lighting Design, a family-owned and operated business that paved the way for the lighting industry in Utah.
Fiber Optical cables connected to an optic ports and Network cables connected to ethernet ports...
Brian Huston, CE and Anthony Perkins, BICSI

Why Every Business Needs a Structured Cabling System

A structured cabling system benefits businesses by giving you faster processing speeds and making your network more efficient and reliable.
notebook with password notes highlighted...
PC Laptops

How to Create Strong Passwords You Can Actually Remember

Learn how you can create strong passwords that are actually easy to remember! In a short time you can create new ones in seconds.
house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 Reasons You May Want to Consider Apartment Life Over Owning a Home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to Choose What MBA Program is Right for You: Take this Quiz Before You Apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Coke products might look a little different next year