The Great National Temperance Drink :: essays papers

The Great National Temperance DrinkCoca-Cola Enterprises is the self-proclaimed largest bottler of liquid, nonalcoholic refreshment in the world. More than 350 million people live in degree centigrade territory and since late suffer century most have been addicted to the sweetened water. Anyone who prefers sipping an ice-cold Coca-Cola Classic (or one of their companion sodas such as fodder Coke, Sprite, Mr. Pibb, Cherry Coke, Mello Yellow, etc.) should start deciding how much they are willing to pay for them in the grocery store following the New Year. Coca-Cola Enterprises Inc., or CCE, is planning to increasingly raise the price of their soft drinks by as much as 5% during the next year. This increase is being directly prompted by the imposition of a higher annual target growth for 2000 of 6% by the Coca-Cola Corporation of Atlanta, Georgia, which owns a 40% share in the bottler. This target volume growth is double over that of last years expectation and triple that of thi s years growth.While some people are blaming inflation and rising marginal costs (see Figure 1 below) for the price emanation and Coca-Cola Co. is pressing fault on the negative impact of foreign currency, another factor may also be creating pressure for Coke to regain deep in thought(p) incoming revenues. This summers contamination scares and product recalls in Belgium, France and Poland definitely hurt sales in Europe, as well as removed 17 million cases from the planning of products. Another costly segment of this issue was the compensation and distributing costs of 15 million liters worth of coupons for free Coca-Cola products the disgruntled residents of Belgium received. CCE estimated that the total loss was about $103 million, including a case volume decline of 6-7% in Europe. The annual total revenues of CCE from sales as well as the costs associated with operation, delivery, and administrative expenditures, all in toll of millions of dollars. While this graph include s neither long-term debt nor shareholder payments, it does indicate a noticeable jump in marginal costs of production in the last few years. This is closely paralleled by an increase in revenues, indicative of previous price increases. Regardless of the cause, lets look at the consequences of this price increase driven by Mama Coke... While a few consumers are die-hard Coke or Pepsi drinkers, some us easily become indifferent once set about with a grocers aisle filled with refreshment possibilities.