The Real Cost of Coke
This post originally appeared on Food Politics.
I received this note yesterday from Michael Jacobson, director of the Center for Science in the Public Interest, about his latest column in The Huffington Post:
How would you feel if you had to pay $8.50 a gallon for gasoline?
Then why on Earth would you pay that much for water and high-fructose corn syrup?
That’s how much Coke costs in those new 7.5-ounce, 90-calorie cans. Calorie-counters may appreciate the small size (90 calories) but dollar-counters beware: We did a little math and it turns out that Coke in the new can costs between 50- and 140-percent more than Coke in the old 12-ounce cans. Basically, Coke is charging two or three cents more per ounce for Coke in a smaller can—and this from a company that throws temper tantrums when lawmakers propose a one-cent-per-ounce tax on soda!
I once asked a group of retailing executives why the cost of smaller size containers was so high (surely the containers don’t cost that much). They said: “if customers want smaller portions they ought to be willing to pay for them.” Oh.