Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version VT1.00C 11/1/84; site vortex.UUCP Path: utzoo!watmath!clyde!cbosgd!ihnp4!ucbvax!decvax!vortex!lauren From: lauren@vortex.UUCP (Lauren Weinstein) Newsgroups: net.misc.coke Subject: Re: "Classic" Coke Message-ID: <710@vortex.UUCP> Date: Thu, 11-Jul-85 16:49:50 EDT Article-I.D.: vortex.710 Posted: Thu Jul 11 16:49:50 1985 Date-Received: Sat, 13-Jul-85 11:45:58 EDT References: <541@hou2g.UUCP> Organization: Vortex Technology, Los Angeles Lines: 33 It is doubtful that "classic" Coke will be priced substantially differently from "regular" Coke, at least in the short term (except for particular promotions that have been present for the new formula for quite some time). The manufacturing costs of the two are exceptionally similar. The primary push for the availability of the old formula was extremely poor sales in certain areas of the country, especially, oddly enough, outside of major metro areas like L.A., N.Y., S.F., etc. The new formula performed horribly in the South, where it sometimes reportedly can be difficult to get a Pepsi in some areas if your life depended on it (remember that Coke world headquarters is in Atlanta). The new formula is performing very well internationally, where I believe something like 60% of Coke's sales are originated. Apparently sweeter drinks really do better outside the U.S., and there are fewer historical, psychological tie-ins such as people have over here with the "old" formula. So Coke doesn't lose on this score. It now becomes something of a waiting game. There are no accurate long-term sales figures for the new formula, since sales to this point were driven largely by curiosity and major promotional campaigns/discounts. Coke will now sit back and see what the local bottlers (who were screaming for the return of the old formula, since after all the hoopla their sales were still pretty much flat instead of increasing substantially) do, and how markets and other vendors partition their sales between the two similar products. From this data will come the long-term distribution and pricing decisions. So if you want to have immediate impact, start buying the old forumula as soon as you can. I believe that a 1% change in the market for these beverages is worth about $250 million/year... --Lauren--