Coca-Cola puts freeze on price hike as customers opt for water and juice

28 July 2023 , 15:01

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Coca-Cola has noticed a drop in customer demand (Image: Getty Images)

Coca-Cola has vowed to put an end to raising its prices for the time being after noticing a drop in customer demand. The company has been steadily increasing its price for two years to counter higher costs on its materials and production.

However, it has only seen some customers step away from the 137-year-old brand to instead spend their money on more affordable drinks such as bottled water and juices instead. CEO James Quincey says customers in Europe and North America have slowly been turning their back on Coca-Cola, especially since prices jumped 10 percent in the second quarter of 2023.

He said: "Across the sector, consumers are increasingly cost-conscientious. They are looking for value and stocking up on items on sale." However, the company continues to raise prices in developing markets like Latin America.

The price of Coca-Cola jumped 10 percent in the second quarter of 2023 (Getty Images)

His comments came in an Earnings Call, where he also revealed the worldwide brand was looking forward to trying new methods to improve its affordability. "We need to keep an anchor and continue to evolve and adapt our strategies on affordability, whether that be refillables, whether it be affordable small packs, or affordable future consumption packs, that has become something that is a tested strategy in inflationary environment," Mr Quincey continued.

It comes after Pepsi announced it would stop raising prices in February after noting a drop off in customers. The rival company reported a 4.5 per cent drop in sales in North America during their second quarter, a worse decline than Coca-Cola.

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Around this time, Coca-Cola upset its loyal customers by scrapping its iconic Lilt brand with immediate effect in the UK. Flavours of the tropical drink have been hitting the shelves since February 14 under the new name of Fanta Pineapple & Grapefruit, marking the end of the Lilt brand after 48 years.

A zero-sugar version of the drink was launched as part of the rollout of the new product. A spokesperson said Coca-Cola Europacific Partners (CCEP) said the packaging of the new drink would display "a graphic nod to the totally tropical taste" of Lilt.

Martin Attock, CCEP GB VP of commercial development, said the announcement has been made to "reassure Lilt's loyal fanbase that absolutely nothing has changed". He added: "It's still bursting with tangy tropical flavours. It's just got itself a new name."

Paige Freshwater