Thursday, October 15, 2009

Shrink It: Coke Introduces 90 Calorie Cans

Coca Cola is following suit where many snack brands have gone in order to offer a "healthier version" of their product. Oreos, Goldfish, even yogurts have shrunk themselves in an effort to appear like a harmless little snack. Coke will introduce it's 90 calorie can of all of it's products. Hmmmm....
I'm not sure this is the answer to healthy eating, and I think most soda's already have those tiny little cans but maybe they'll get a cool designer to do the labels.


Blogger Royce said...

I love this business plan. It's so smart. If you can convince enough people that they are better off consuming your product in 90 calorie packages, you end up getting more $ profit per can because your margins are better on the small cans. Like the price curve where the 2 liter Coke is $2 but a single serve bottle is $1.

So if a regular can is the size of 140 calories and costs say $0.75, and a healthy can is the size of 90 calories and costs say $0.55, then Coke just shrunk their costs by 36% while shrinking revenues only 27%. So that's basically 9% extra profit margin on the healthy cans. Of course I have a ton of assumptions in there - maybe smaller cans don't scale in terms of production costs quite that easily, but you get my drift.

October 16, 2009 at 8:43 AM  

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