Wow, such narrow minded views. I highly doubt Alison wont expand the product range if coke margins kept dropping. There are small changes I can see already that gives me confidence long term, comparing cca to kodak is laughable. CCA has already recongised the issues, and have been working on them for months. I suspect this result to be nearing the end of them.
In regards to pricing of pepsi / coke. There is one thing not being noted. Coke is yes dearer, and albeit a premium product over pepsi. Is this because it costs more to make? No. Is it because it tastes better? Probably a little, but no. So why is coke not dropping the price hugely????....
.... The answer is simple. When did you last walk into a pie shop, convenince store, or fush n chup shop and see pepsi fridges? RARELY to NEVER. Coke provides these fridges to vendors giving them a major exposure level pepsi will never have, simply because they price their product at a price that makes it impossible to have margins to do this. This gives CCA the exposure level pepsi will never have,.. Dont want coke, sure no problem, that water and juice in those fridges is theirs too. Dont want to stock coke in your shop? No free fridge for you. The supply and maintenance of those fridges is paid by coke, thru better margins which is the cost sure, at a benefit of a market capture size that makes that cost look like peanuts in comparison. I dont drink lots of coke, but when I buy a pizza or hot chips, theres only one drink I have, because its always there at every shop that sells takeaway. Some might call that a kodak moment.
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