Coca-Cola and Companies to Raise Prices

By: | 06/25/2011 10:34 AM ET

If you’re a soda drinker, then you should know that Coca-Cola will raise prices. This means that prices for the soft drinks by Coca-Cola will rise by 3 percent to 4 percent in July. In addition, the company plans to raise other products this year.

The implementation will take place on July 31, 2011. The increases are due to higher-than-anticipated commodity costs. The news of Cola Cola to raise prices is also due to higher costs for goods like corn, oil and packaging.

Credit Suisse analyst Carlos Laboy said in a research note that there were concerns that Coca-Cola would wait until after Labor Day, at the end of the summer. That would make it more difficult for other soft drink makers, like PepsiCo Inc and Dr Pepper Snapple, to raise prices on their products during the key summer selling season. It could also be the perfect time for other soda companies to run specials.

“Today’s news should provide some relief for all players in the industry in North America,” Laboy wrote. Beverage Digest reported earlier this month that Pepsi was notifying retailers of price increases of 3 percent to 5 percent between July 10 and around Labor Day. The higher costs seem broader than Coca-Cola and it does have an impact on the entire industry.

Coke shares were up 0.2 percent at $65.09 in afternoon trade on the New York Stock Exchange. Pepsi shares were up 0.8 percent at $68.54. There are no sudden or drastic changes with Coca-Cola stocks.

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