Coca-Cola's CEO has warned that Coke will continue increasing prices in 2023.
👉 Background: The Coca-Cola Company is the company behind the famous Coca Cola drink concocted way back in 1886.
👉 What happened: Today, it is sold in over 200 countries around the world with 1.8 billion servings each day. In the most recent quarter, Coca-Cola saw revenue of $10.1 billion USD - largely thanks to an 11% increase in its average selling price.
👉 What else: Now, the Coca-Cola CEO has warned that Coke will continue increasing prices in 2023. But Pepsi, its arch rival, will put a halt on price rises this year. It seems like these quasi-duopolies can play by their own rules.
💡 A duopoly is where two companies have a dominant position in a particular industry - with significant market share.
💡Between Coca-Cola and Pepsi, they have over 71% of the US carbonated drinks industry. And this near duopoly in the carbonated drinks market has made it pretty easy for these companies to do price hikes.
💡 In fact, both Pepsi and Coca-Cola have already increased their prices multiple times over the past year without any significant impact on demand.
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