Coke’s Shrinking Packaging Improves Margins

Posted on by Patty Odell

Kraft, Campbell’s Soup, Entenmann’s and Coke are just a few major brands that are shrinking packaging or shrinking the contents of those packages to improve profit margins.

shrinking packagingBut this may be important to Coca-Cola in particular, which has been fighting a steady decline in soda consumption. Coke’s initiative to drive consumption of smaller serving sizes—available in both cans and the iconic glass bottles—may be more attractive to consumers worried about sugar intake and calorie counts. In addition, consumers of a certain age may find the small glass bottles a refreshing taste of nostalgia.

As a testament to its new packaging strategy, Coca-Cola reported earlier this week that global soda sales volume rose in the last three month of 2015. It attributed the rise to sales of “smaller cans” and a 3% increase in North American purchase transactions.

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