Canned Coca Cola Cost Analysis

The cost of cans: The cans are supplied by a dedicated can manufacturer. The supply is stable and the price is not available

The sales of cans accounted for 30% of the total amount of Coca-Cola beverages. Many people have become accustomed to consumption of Coca-Cola canned beverages and will not change other forms.

In addition, there are plastic bottles, glass bottles, or bulk sales

Cost of raw materials: water, carbon dioxide, spices, phosphoric acid, caramel, etc.

The low cost of these raw materials, Coca-Cola's production in China has now achieved 100% localization, so China's cheap raw materials to contribute to reduce costs.

Cost of production equipment: filling equipment, disinfection equipment, batching equipment, packaging, etc.

Electricity fee, water fee

Employee salary

Operating costs

In the sales process, the Coca-Cola Company uses existing sales networks that are already well established to sell.

The transportation of the product will undoubtedly increase its cost. Therefore, Coca-Cola has established a number of branch companies to carry out bottling and sales throughout the country, which will reduce the transportation costs to a considerable extent.

Advertising advertising costs: a large number of television advertising, a large number of print advertising, a large number of related activities and sponsorship activities

It has been reported that Coca-Cola has invested more than 90% of its profits in advertising, regardless of whether the data is true or not, but the resulting huge economic returns are still acceptable compared to the advertising investment.