Reach for the faucet instead of the drink cooler when you need a refreshing beverage during the Dog Days of summer.
That is unless you’re okay with spending a little extra for Coca-Cola Classic and many other soda products.
Coca-Cola recently announced it would increase soft drink prices by 3% to 4% in July, and that follows a decision to increase prices 2% earlier this year. Those costs get passed on to retailers and will eventually mean higher prices for you at stores, restaurants and vending machines.
What’s more…Coke isn’t the only company jacking up the cost of getting your carbonated caffeine-buzz….
Pepsi also said it was increasing what it charged retailers for its products from 3% to 5% over the summer.
Many analysts now expect the smaller beverage companies like Dr. Pepper/Snapple to follow the lead of Coke and Pepsi.
The soda giants are being forced to pass price hikes on to consumers like you because the cost of making their products are going up thanks to increased commodity prices and oil prices. Bernard Baumohl, an economist with the Economic Outlook Group told MainStreet.com that Coke, Pepsi and all the rest know that raising prices just as everyone starts throwing 4th of July picnics is a smart move.
“If you are a CEO and you are going to try to pass on those higher costs, what better time to raises prices on drinks than during the summer when you know that consumption is going to be increasing?”
But Baumohl also thinks any organization that raises prices right now is taking a pretty big risk. So many households are tight on cash that shoppers may be likely to cross Coke off the grocery list.
Can We Cut Out Coke?
Listen…I enjoy a soda, pop or Coke (whatever you call it depending on where you live) just as much as the next guy.
But quitting your cola habit could benefit more than just your budget. Consider this…one bottle of coke has 100% of the recommended sugar intake for your day.
From Coca-Cola Classic alone…Americans take in 1.7 million tons of sugar every year, or 10.8 pounds of sugar per person. It all adds up to more than 125 servings of Classic Coke per person. I repeat…that does not include any other Coke products or any other kinds of soda you drink…just Coca-Cola Classic!
Of course, their are other health risks to consider.
- Increased risk of cavities
- Increased risk of diabetes.
- Increased risk of obesity
- Increased risk of brittle bones in children
There’s a lot of nasty stuff in soda. I’m not a health-nut so I won’t go on and on about it. The simple fact is we could all benefit from drinking a little more water. Myself included.
My name is Kasey and I’m a caffeine-aholic. I down at least two big mugs of coffee before I leave for work and then have some more once I get to my desk.
Drinking coffee may be a little bit healthier, but just like soda, it’s also getting more expensive. Smucker, which owns the brands Folgers and Dunkin Donuts, raised prices twice in 2010 and twice already this year for a total spike of more than 30%!
Honestly – it will probably take more than that to get me to kick my caffeine addiction.
Do any of you have any good alternatives. Ever tried Water Joe caffeinated water? How about those make-your-own soda machines I’ve seen out there?
Leave a comment and join the conversation!
Image Credit: selma04187 and sol_one
“I’d Like to Buy the World a Coke”
(But it’s too expensive and might kill everyone)
+Kasey Steinbrinck writes about personal finances and the economy for Check Advantage. The online company offers cheap checks including QuickBooks checks for small businesses and fun personal checks. Contact Kasey to request free original content for you blog or website.
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Time to buy some Coke stock! All kidding aside, I was pretty amazed to read that one Coke Classic is 100% of your daily sugar intake. If more people knew this they may think twice. I love the occasional Coke now and then, just like you, so the price bump isn’t really going to be felt to be honest.
If you want to cut coffee expenses, just brew your own! A simple French press is much easier and convenient to use than a coffee maker. I have one at home and at work so I’m never without my daily caffeine dose.
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Ha ha! Just imagine if you bought Coke stock 50 years ago. Unlike Pepsi – people drink it in practically every country.
I agree – brewing your own coffee is the way to go! I’ve never used a French press, but have a coffee snob friend who loves his.
Thanks for stopping by!