Top Story


Home >> Media – Print >> Article

Coca-Cola, Pepsi hike prices in metros

Font Size   16
Coca-Cola, Pepsi hike prices in metros

Though both companies follow a policy of regional pricing, the MRP in Delhi has been fixed at Rs 10, up about 11 per cent from Rs 9 earlier. While Pepsi effected the increase last month, Coke did the same earlier this month. Traditionally, both of them do not increase prices together and one usually follows the other in effecting changes in the pricing.

The increase in prices comes at a time when both players have been struggling to maintain the pressure on their bottomlines because of high excise and sales tax structures. The soft drink majors have been increasing prices of their products in regular intervals. While the current increase comes after the one in March 1999, the one before that was during October 1997.

According to industry watchers, the increase is largely a result of lack of relief on the excise front, with duties at 40 per cent being the worlds highest. Also, freight and input costs have increased substantially, they said and added that to remain competitive they had to increase prices.

Prices of soft drinks have almost doubled over the last five years. Being a price-sensitive product, these increases have not been taken very well by consumers and growth has slowed down from 25 per cent during 1998 to 5 per cent during 1999 and about 11 per cent during year 2000.

A study by NCAER had revealed that a significant 65 per cent of consumption of soft drinks is by the middle class and an additional 25 per cent by the lower income group.

The Rs 5,500-crore soft drink sector employs a staggering 1.25 lakh people and is one of the single largest contributors of foreign direct investment estimated at $1 billion. Together, the two companies are said to have accumulated losses in excess of Rs 500 crore because of high duty structures.


Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

V-Guard Industries, a household name for consumer electrical appliances in India, has revamped its logo in order to reflect the strength gained by the brand over the years. The company has also unveil...

The report reveals that there has been nearly 5 times more growth in video consumption in the last 12 months, with 96 percent of all usage being focused on long form video

Gopalan currently leads the Indonesia operations of P&G, and will be taking over from April 1st, 2018 as Al Rajwani is set to retire after 37 years with the company.