Bottlers

How do the economies of bottlers differ from concentrate producers?

Ans) for CP's most significant costs were for advertising, promotion and market research
and bottler relations. which lead in developing the programs particularly in product planning,
market research and advertising. They invested in their trademarks overtime with innovation
and sophisticated marketing campaigns. Also employed extensive sales and marketing
support staff to work with and help improve the performance of bottles setting standards and
operating procedures.

The bottling process was capital intensive and involved specialised, high speed lines. Lines
of interchangeable only for packages of similar size and construction. Bottling and canning
lines cost from 4 million dollars to 10 million dollars each depending on volume and package
type. The minimum cost to build a small bottling plant with ware house and office space was
$25 to $35. Roughly 80-85 plants were required across the United States. Among top bottlers
in 1998 packaging account for approximately half of the bottler's cost of goods sold;
concentrate for one third and one tenth. Labour accounted for most of the remaining variable
costs. Bottlers also invested in trucks and distribution network.