Saw this on a friends FB page:
Why would Coca Cola reduce their pack size from 500ml to 440ml but keep the price the same?
A 12% drop in pack size with the same selling price automatically results in a better bottom line.
Reducing volume by a hardly noticeable (two sips) amount, will also save Coca Cola Company millions of Rands with the introduction of the new "Sugar Tax"
Logic,
Consumers will still buy the same number of "units" but the tax bill will be reduced on "volume of sugar in the serving." By my calculation the saving per serving on sugar tax will be roughly 13.57835 cents. (500ml ve 440ml. Tax calculated at
2.29 cents per gram of sugar. The reduced pack size has a reduction of 5.929412 grams of sugar) That is a saving on the sugar tax of R13 578 352 on every million servings of Coca Cola sold. Add to that the above 12% saving on input costs. Add to that the saving on the wear and tear on vehicles and diesel saving because of not having to haul the additional volume around the country. The sugar tax is actually helping Coca Cola be more profitable.
I think you can see that the reduced pack size has everything to do with health - the health of the Coca Cola bottom line.
Coca Cola claim they will lose money as a result of the tax, clearly that is not the case for the company.
If the 500 / 440ml pack size is 20% of the annual business then just the saving on the Sugar Tax will be R11 240 870 070.
Sources of numbers and additional information
www.coca-cola.co.uk/faq/how-much-sugar-is-in-coca-cola
africacheck.org/reports/sas-proposed-sugar-tax-claims-calories-job-losses-checked/
poorernotthinner.co.za/wp-content/uploads/2016/08/Coca-Cola-South-Africa-SSB-Tax-Submission.pdf
www.wikinvest.com/stock/Coca-Cola_Hellenic_Bottling_Company_(CCH)/Unit_Case_Volume