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Coca-Cola May Trigger Price War with Pepsi

Coca-Cola may have triggered a price war with its competitor Pepsi, after reducing the price for its 200 ml returnable glass bottle. This move comes just in time for the summer season, as the price of Coke glass bottles get a cut Rs 2, in select markets, bringing the price to a standard Rs 8 across the country.

Coca Cola Logo

Coca Cola

It main competitor, PepsiCo, is expected to follow suit since the 200ml glass bottle segment, mainly situated in rural and semi-rural areas, is very sensitive to price movements.

Pepsi Logo

Pepsi

The last time this segment experienced a price cut was in 2003, when Coca-Cola introduced its affordable pricing strategy, where it priced its products at Rs 5. PepsiCo reacted to this strategy, by also dropping their prices. However, both companies later withdrew from the pricing war, as profits dwindled.

This move is expected to help brand Coke increase its market share, as most packaged consumer good hike their prices.

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