Coca-Cola raising prices, all I keep hearing is that there isnt any inflation!

Discussion in 'Economics' started by S2007S, Jun 24, 2011.

  1. S2007S


    I mean thats what Bubble ben bernanke is saying and all the rest of the idiots out there, but guess what there is inflation and if they release more QE it will only make inflation worse in the coming months ahead. Bubble ben bernanke has backed himself into a corner, no matter what he does its going to cause significant problems within the economy. All these companies are raising prices and passing the cost on to the consumer and it seems its not going to slow down anytime soon, unless commodities collapse at least 40-50% which I do eventually see happening in due time!

    Coca-Cola to raise prices in July

    Bottles of Coca-Cola are seen in a warehouse at the Swire Coca-Cola facility in Draper, Utah March 9, 2011. REUTERS/George Frey
    On Friday June 24, 2011, 2:10 pm EDT

    NEW YORK (Reuters) - Coca-Cola Co plans to raise prices on its soft drinks by 3 percent to 4 percent in July, in addition to a 2 percent increase taken earlier this year, a company spokesman said on Friday.

    News of the increases -- to be implemented on July 31 -- was first reported by industry newsletter Beverage Digest, which quoted retail customer pricing letters as saying the increases were due to higher-than-anticipated commodity costs.

    Like many food and drink companies, Coca-Cola is facing higher costs for goods like corn, oil and packaging.

    Coca-Cola, the world's largest soft drink maker, said earlier this year that it expected to raise prices in that range, but the timing was unknown.

    Credit Suisse analyst Carlos Laboy said in a research note that there were concerns the company would wait until after Labor Day, at the end of the summer. That would make it more difficult for other soft drink makers, like PepsiCo Inc and Dr Pepper Snapple, to raise prices on their products during the key summer selling season.

    "Today's news should provide some relief for all players in the industry in North America," Laboy wrote.

    Beverage Digest reported earlier this month that Pepsi was notifying retailers of price increases of 3 percent to 5 percent between July 10 and around Labor Day.

    Coke shares were up 0.2 percent at $65.09 in afternoon trade on the New York Stock Exchange. Pepsi shares were up 0.8 percent at $68.54.
  2. sprstpd


    No no, using hedonic adjustments water is free and voila, we have deflation.
  3. I wouldn't worry about it. Go to any supermarket and some soda will be 50-70% off. If you buy stuff that's on sale, your food bill will likely be lower than it was a few years ago.

    If you decide you need to shop at Whole Foods or somewhere else, then so bet it, you'll pay alot for food.

    But we all know the Fed's mantra is "inflation at all costs". Even those latest soundbites of more stimulus if any signs of "disinflation". Fucking comical.
  4. If Pepsi follows anytime in the next months it is without doubt inflation.

    If it doesn't, it would be only a Coca Cola problem. :) I dont drink soda.
  5. Looks like Coke is going to have to pass onto its customers the increase in their costs from the tax imposed by GS and JPM who can put delays in aluminum delivery and boost profits....

    "Goldman Sachs said that the queues faced by companies trying to withdraw metal from Metro warehouses were a result of complex market dynamics and that it was in complete compliance with LME rules."

    Somebody posted a similar kind of thing with oil held in tankers I think..
  6. dewton


    A 3 to 4 percent increase in Coca-Cola prices is lower than expected. The recovery is well underway!
  7. Bob111