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Coke cuts can size as aluminium costs surge

by Stephanie Wong — last modified 2008-07-25 10:21 Business Report

Coca-Cola, the world's biggest soft drink maker, has reduced the size of drink cans in Hong Kong by 7 percent to rein in rising production costs driven by high raw material prices.

"The main driver is aluminium," Kenth Kaerhoeg, the communications director for Coca-Cola Asia Pacific, said yesterday.

Coca-Cola, Toyota Motor and other firms are struggling with rising metals and fuel costs because of a global shortfall of materials. Aluminium prices have jumped by 25 percent this year as power shortages in China and South Africa led to production cuts.

The new cans went on sell early this month, Kaerhoeg said. The cans were cut to 330ml from 355ml, the Apple Daily newspaper said yesterday. This included Coca-Cola, Coke Light and five other soft drink brands.The new can would align products with those sold in Europe,.

Prices for the drinks had not been cut by suppliers.