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Mini-Bottles Gain Popularity
For years, people have debated whether Coke is responsible for making Americans fatter. As that debate heated up seven years ago, Coke decided to sell soda in smaller bottles and cans. The mini-cans and bottles were a hit for Coke. Mini-bottle sales have grown over the last three years and increased 15 percent in just the first five months of 2015.
The mini-cans of Coke are so popular that they now compete with 12-ounce cans and 2-liter bottles for grocery shelf space. Originally, the company only made smaller versions of Coke and Diet Coke. Now, several different soda brands owned by Coca-Cola come in small bottles, including Sprite, Fanta Orange soda and Seagram's Ginger Ale.
Sandy Douglas is president of the North America division of Coke. He says the mini-cans are making the company a lot of money.
A regular 12-ounce can of Coke, for instance, sells on average for 31 cents. A 7.5-ounce mini sells for 40 cents. Even though the mini-cans have less soda, they cost more than a regular can, Douglas said.
Owners of shares in the Coca-Cola company are no doubt impressed. The plan to sell Coke in mini-cans and bottles has helped the company's stock price soar for the last seven years. But not everyone thinks this is a good thing.
Less Coke, Less Damage
Michael Jacobson is president of a health advocacy group. He says the smaller bottles do carry fewer health risks. They are less likely to give consumers tooth decay or diabetes.
Still, he worries that some people who do not drink sodas may want to try the mini-can because of its size.
"I don't know how this is going to shake out, but we should know soon as the popularity increases," he said. He urged Coke and its rival, Pepsi, to reduce other soda sizes, including the 2-liter bottle and 12-ounce can.
For the past 10 years, sodas have become less and less popular in North America. Americans, given more choices in teas, coffee and water, have pulled back on drinking sodas.
A poll last year found that more than half of adults avoided all types of soft drinks. Even Diet Coke, which has fewer calories than regular Coke, is becoming less popular.
Many cities are concerned about the effects of soda on people's health. They have tried to get soda companies to pay higher taxes or provide smaller portions.
Last year, many people were upset with Coke. Newspapers reported that the company was paying a group of scientists at a university. The scientists said the reason Americans were getting fatter was because they did not exercise enough, not because they drank too much soda.
Coke cut ties to the group and the organization later shut down.
People Don't Mind Spending More For The Right Size
Through its mini-cans, Coke has found a way to make money even though fewer people drink soda.
People are willing to pay more for smaller bottles. They are more convenient and let you control how much you consume, said Duane Stanford, who works at a soft drink magazine.
The mini-cans can also bring back consumers who see soft drinks as a treat, Stanford said.
The mini-bottles have changed the way Coke calculates its business, though slowly. The company still measures the amount of soda it sells in volume. The volume of soft drinks that the company sold in North America at the end of last year grew 2 percent.
But because of the mini-bottles, it is now reporting the amount of money it makes per purchase.
"The past focus of both our company and the industry was how many gallons were sold," Douglas said. "That's not a good approach for anticipating and meeting consumer needs in a world exploding with choices."
Douglas said mini-cans and bottles are popular with all people, but especially upper-income consumers and mothers.
"Moms want to treat their kids, but they don't want them to have too much," he said. "They want to be in control, and these packages give them control."