Coca-Cola Co., Atlanta, will increase its prices in an effort to
boost its bottom line. Prices have increased 6 to 7 percent over the
last few months, ending the flat pricing environment that had existed
for most of the decade. Coke executives said they expect to raise prices
2 to 3 percent per year over the next three years to keep pace with
inflation. Analysts said Coca-Cola Enterprises and Coca-Cola Co. have
decided to abandon their low-price, high-sales volume strategy of recent
years and will price their drinks in line with their rising costs.
Previous strategy looked to sell as much product as possible to
supermarket shoppers using low costs as an incentive. As part of the new
strategy Coke recently raised its price to Coca-Cola Enterprises for
concentrate, the major ingredient in soft drinks, by 6 percent, or
double its increases in recent years. Arch-rival PepsiCo is expected to
do the same.