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Coca-Cola brings back refillable glass bottles to combat inflation

Photo by: Vahid Kanani/Unsplash

Coca-Cola Co. was able to conquer profit and quarterly revenue expectations, and this was revealed on Monday this week. The beverage manufacturing company achieved this through price hikes and revived demand for its products at restaurants and theaters.

Most retail firms have raised their prices as the costs of ingredients such as sugar have also gone up. The costs of labor and transportation have surged as well, which means additional expenses for companies; thus, there was no choice but to increase prices.

As per Reuters, the demand has been strong as people started spending more again after restrictions and lockdowns related to the COVID-19 pandemic were lifted or eased up. However, companies and analysts said that the demand may become sluggish once again due to the ongoing war in Ukraine coupled with Indonesia's ban on palm oil exports. They said that these issues could result in higher food prices around the world.

Coca-Cola warned that the demand could slow as there is no sign that uncontrollable inflation is easing soon. Due to this, it expects a decline in sales of its products, so to combat this and also help the consumers’ pockets, the company said it would use and focus more on refillable glass bottles that are also cheaper.

"The overall inflationary environment is going to be here for a while.” John Murphy, Coke’s chief financial officer, said in an interview with CNN Business earlier this week. “For exactly how long, nobody knows."

Now to prepare for the expected decline in consumer purchasing power, the Coke producer said it is expanding the distribution of returnable glass bottles. Coca-Cola knows that some consumers are being hit by the higher prices more than others, so the company’s chief executive officer, James Quincey, said that they are experimenting with refillable packaging in the said regions.

For some parts of Southwest United States, Coca-Cola is leaning more toward using returnable glass bottles. The CEO said that the aim of these packaging schemes is to reduce waste and give customers incentives to opt for reusable bottles.

Meanwhile, the Coca-Cola products in returnable glass bottles are already available in Hong Kong. It has released a new design of its glass bottle which was described to be bigger but lighter, easier to transport and store. Taiwan News mentioned that the new design also makes it more convenient for customers to return them after use and get cleaned, disinfected, and refilled in bottling plants.

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