Coca-Cola will raise prices on its drinks to combat the impact of higher commodity costs, its CEO told CNBC on Monday.
The beverage company joins a number of other consumer giants, such as Kimberly-Clark and J.M. Smucker, in hiking prices. While the move will help their profit margins, it may come at the expense of cash-strapped consumers who are still struggling from the economic impact of the coronavirus pandemic.
“We are well-hedged in ’21, but there’s pressure built up for ’22, and so there will have to be some price increases,” CEO James Quincey told CNBC’s Sara Eisen on “Squawk on the Street.”
“We intend to manage those intelligently, thinking through the way we use package sizes and really optimize the price points for consumers,” he added. Read more…..
Chart of the Day
Icarus TV
Inflation – or the rate of change in prices over time. It’s not a simple phenomenon to measure or interpret. If you have been paying attention to the news inflation is a growing concern for investors and general citizens, and while this phenomenon has always existed in modern economies, the United States has not experienced high inflation since the early 1980s.
