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Policy Jul, 25 2014

Soft drink makers to hike price

To make up shrinking margins.

By Franchise India Bureau
Soft drink makers to hike price

The bottlers may force aerated and sugary drink makers, Coca Cola and PepsiCo to increase pricing to make up for shrinking margins after the Finance Minister decided to levy an additional excise duty of 5 percent.

Coca-Cola and PepsiCo want to minimise the price hike across packs as they believe this could negatively affect volume growth amid slowing sales. On the condition of anonymity, a leading bottler of one of the firms, said, "We want to hike prices by five percent across packs as this is hurting our profitability. But the company wants us to absorb as much of the excise hike as we can, because hiking prices could negatively impact volume growth".

However, some of the bottlers have themselves started hiking the price while others are in talks with the companies to hike.

Related: No more liquor sale in Bihar, restaurants, hotels also barred

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