The rise in the cost of Coca-Cola products, driven by soaring raw material prices, is forcing the company to raise prices. The head of Coca-Cola, James Quincy, announced this on Monday in an interview with CNBC.
“We plan to do this intelligently by thinking about the size of the containers used. Thus, we optimize prices for consumers, “- said the head of Coca-Cola.
According to him, many daily costs have already exceeded pre-crisis levels and will soon begin to reduce the profitability of the business. James Quincy did not say which products of the company will rise in price.
Coca-Cola already markedly raised the price of its products in 2018, when Donald Trump raised import duties on aluminum.
Other American manufacturers, including Kimberly-Clark, JM Smucker and Procter & Gamble, are also increasing the cost of their products due to more expensive raw materials, according to S&P Global.
The first quarter saw perhaps the sharpest increase in production costs in modern history (in% yoy – approx. ProFinance.ru), said Jefferies chief strategist for the stock market Sean Darby. This, according to him, was facilitated by an increase in transport costs, as well as increased prices for raw materials and energy carriers.