Coca-Cola Profit Rises 18%

Coca-Cola’s net income rose 18% during this year, however, the company is anticipating commodity costs could be as much as $300 million higher than expected. This estimate could potentially rise to over $400 million by the end of the year. Increased costs are due to high fuel costs and soaring prices for the plastic they use for bottling. With a lack of business in the East after Japan’s devastating earthquake and tsunami, Coca-Cola is projecting a negative hit of three to five cents a share. In order to solve these looming threats to Coke’s business, they will be raising prices by 3% to 4% this year in large markets. They will attempt to sell more drinks in convenience stores which already present higher drink prices in comparison with supermarkets. A recent increase example is the 1.25 liter bottle of Coke selling for 99 cents in the supermarket, the same price a 2 liter bottle used to cost. 

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