Coke Hikes Concentrate Price By 10%

CoCa Cola India has decided to hike its soft drink concentrate price by 10 per cent with effect from July 1. The hike will increase the cost of production of a crate by Rs 4. The hike comes close on the heels of a Rs 8 per crate increase in the excise burden on soft drinks due to a hike in the rateable value by the excise department.

CoCa Cola had earlier made a move to increase the concentrate price by 20 per cent effective from January 1 this year. But the move had to be withdrawn due to pressure from bottlers who threatened to stop production if Coke pushed through the price hike.

 

The Coke hike is the fifth in the last two years. Last year, the multinational had increased the price of concentrate by 17 per cent last July. However, the decision is in line with a commitment made by the Coke management last year that they would not increase the concentrate price before June this year.

A Coke bottler said: We have still not been given the circular announcing the price rise. But once it happens, the bottlers will get together and see at what level the price of a bottle has to be increased.