Why Is Soda So Expensive in Europe?
I’m one of those “drinks a ton of Diet Coke” people, and thus every time I come to Europe I find myself dismayed at the cost of soda over here. Does anyone have a good explanation of why it’s so much more expensive than in the US? I thought Google might have an answer, but a quick search didn’t seem to reveal anything. Of course VAT and higher low-end labor costs make a lot of things more expensive in Europe than in the United States, but the scale of the difference here is huge. And very similar items like bottled water don’t exhibit the same price differential, and coffee generally seems to be cheaper here than at home.
I take it that with brand name soda actual production and distribution costs are a minor factor in setting prices. Could it just be that the structure of the market demand is totally different and in the U.S. cheap soda leads to high sales whereas they think the price-elasticity is lower here so the profit maximizing equilibrium just involves higher prices and lower volume? But why would that be? The expensive soda and inadequately chilled beverages are definitely an aspect of the European social model that I would not want to see imported to the land of the free.
107 Responses to “Why Is Soda So Expensive in Europe?”
Register
RSSLogin
Topic Cloud
ArchivesBlog RollAbout Matt YglesiasContact Me
Donate
September 22nd, 2009 at 5:35 pm
I would assume it’s because they don’t subsidize corn syrup in the EU.
September 22nd, 2009 at 5:36 pm
Diet Sodas don’t contain corn syrup though.
September 22nd, 2009 at 5:39 pm
I’m drinking a delicious Coke Zero right now. I spent 2 weeks in France over the summer and very quickly got sick of paying 4 Eur for a Coke.
September 22nd, 2009 at 5:42 pm
Soda is cheaper in Europe, get into the next Aldi Mr Brandsnob and buy a Topstar 0%. Or maybe River i think you are in Aldi North theritory. If you take the ones with sugar ( i doubt that) Lidl also has some house brand. But they only have branded zero coke i think.
September 22nd, 2009 at 5:42 pm
Are you sure that it is expensive universally? By that, I mean, have you checked the prices at the grocery stores. Remember that restaurants in Europe actually pay their employees and hence are more expensive in general.
September 22nd, 2009 at 5:44 pm
Here in Spain, 2liters are 1.39 euros.
September 22nd, 2009 at 5:45 pm
On one hand, expensives cokes. On the other hand, nutella crepes.
September 22nd, 2009 at 5:46 pm
Considerinb bottled water:
Quality wise:
Branded bottled water Germany > Discounter brand bottled water in Germany > any us bottled water.
Cola is different:
Discounter brand Cola Germany > branded Cola US= branded Cola Germany= noname US
September 22nd, 2009 at 5:48 pm
You can’t go to Germany and not drink Mezzo-Mix or other versions of Spezi. Coke now even makes a Mezzo-Mix Zero, so you have no excuse.
September 22nd, 2009 at 5:49 pm
For those that cant go without brands, Norma Lidl and Netto would be the discount stores to look for. Aldi makes life easier and goes almost without branded producs.
September 22nd, 2009 at 5:50 pm
I was in Italy for work years ago (before the Euro) and went out to dinner with a college in Venice. I had the red wine and he drank Coke. When we got the bill he called the waiter over because he thought there had been a mistake. My 1/2 carafe of red wine was 7500 lira and his Coke was 7500 lira.
The waiter goes, “You are right, there is a mistake. You had three Cokes.” So, his three bottles of Coke (about the size of the old 8oz ones in the States) cost him 22,500 lira. Or about $15 at the time. I still laugh when I think about it.
September 22nd, 2009 at 5:52 pm
Well, at least I still spell better than Matt.
September 22nd, 2009 at 5:57 pm
When I was in Spain and Portugal last winter, I found that the prevalence of good and cheap espresso more than made up for any lack of soda.
September 22nd, 2009 at 5:59 pm
Don’t shop at Lidl, by the way.
September 22nd, 2009 at 6:06 pm
You should submit this sentiment to this website…
September 22nd, 2009 at 6:07 pm
It’s already happening here. Try to find a case of Diet Dr. Pepper for less than eight dollars right now even though for the last several months it’s been easy to find five-dollar 24-packs.
September 22nd, 2009 at 6:07 pm
Ill bait why?
Ok, i was lame, i think i already know: Because they are evil and threat their staff like shit. Thats true! The problem is, the high price shops you never see complaints about in tv are worse not better and the other discounters are only better on the margin at best.
September 22nd, 2009 at 6:08 pm
The most interesting aspect of that post, IMO, is the revelation that Europe is not free.
Anyway, there are so many better-tasting and healthier things to drink than a Diet Cola, I can’t believe you’re actually fussing over this.
September 22nd, 2009 at 6:11 pm
Why? Because there are better cheaper things to drink in Europe so why not hose the rubes.
September 22nd, 2009 at 6:15 pm
The expensive soda … [is] definitely an aspect of the European social model that I would not want to see imported to the land of the free.
Huh? Isn’t this inconsistent with your support for a specific tax on soda to support health care?
September 22nd, 2009 at 6:17 pm
I never thought I’d have to say this, but Al beat me to it.
September 22nd, 2009 at 6:18 pm
I’ve heard that not only is it because we don’t subsidise corn syrup in europe, corn syrup isn’t even in regular coke. They use real-life sugar instead, which is imported and thus expensive.
However, as #2 mentioned, syrup isn’t in diet or zero. And also in the UK it’s about the same price in a supermarket as Germany, but they get cheap sugar from commonwealth countries. So this doesn’t really fly.
However, my american husband tells me that supermarket prices here are about the same as the us for coke, it’s just much more expensive in restaurants and bars. But here, drinks are always more expensive in restaurants and bars than they are in supermarkets – 70c for half a litre of beer vs €4 – not just coke.
September 22nd, 2009 at 6:18 pm
You should try Bionade while you’re there, highly recommended. (Though even more expensive than Coke!)
September 22nd, 2009 at 6:20 pm
I thought that just about everything was more expensive in germany. at least that was my experience when i lived there.
September 22nd, 2009 at 6:24 pm
I think most of it is just settling at different equilibrium in the supply/demand/expectations game. Basically, wine and coke are priced the same at restaurants because they are both drinks. Production costs are irrelevant because the margins on any given product at a restaurant are huge. In the United States, alcoholic beverages get put into a category of their own (and this is reinforced by licensing laws) whereas in Europe they are not regarded as different so it would seem very odd for the house wine to be much differently priced than soda.
On the other hand, I found that doing a load of laundry in France costs 5-6 Euros. That is approx 3x what it costs in the United States. That is an example of socialism at work for you.
September 22nd, 2009 at 6:24 pm
The UK is in the EU which is responsible for agriculture policy just like the Germany. So they have exactly the same tariff/regulation regime for agriculture products as Germany. EU sugar usually comes from sugar beets due to high import tariffs on sugarcane which is the cheapest source.
September 22nd, 2009 at 6:27 pm
Welcome in our paradise social-democracies, where the VAT is from 19% (Germany, France, Netherlands) to 25% (Denmark, Sweden) and the competition in the market not really free.
I have to add that, I don’t know what exactly what you are talkin’ about, but if you refer to the prices in restaurants or cafés, the practice here is generally to charge huge margins on drinks. Restaurants (here in France or Belgium, at least) don’t win a lot of money with menus, but well when you buy a bottle of wine, an aperitif or even a soft drink. That’s why you pay ridiculous prices (like 6 euros) just for one glass. I’m always happy when in the USA I can get unlimited coca-cola or coffee (even if yours are usually undrinkable, lol).
September 22nd, 2009 at 6:28 pm
Expect that the vat on food and beverages in Germany is 7%.
September 22nd, 2009 at 6:30 pm
I realize there isn’t actually any sugar (or corn syrup) in Diet Coke, while there is in Coke – but it isn’t as if Coca Cola is going to implement a different pricing scheme between Coke and Diet Coke. So, yeah – I think corn subsidies do play a part.
September 22nd, 2009 at 6:32 pm
Matt..
Reading this post made me do a triple take: Aren’t you FOR taxing sugary drinks in the US? Don’t you want junk food not to be cheap in the US? Are you just being partial to your own preferences in beverages?
September 22nd, 2009 at 6:34 pm
i’m from Ireland and usually a can costs around 1 euro a 500ml bottle around 1.70 and in a resturant a 250ml bottle is like 2 to 3 euro. Whats the usual price in America?
September 22nd, 2009 at 6:35 pm
The German retail market is of course also much more competitive than the us one where Wal Mart as discount quasi monopolist can squeeze insane margins out of the poor.
September 22nd, 2009 at 6:36 pm
Like most bobos, he drinks diet food (and bio, I guess). So he doesn’t care if Big Brother taxes sugary drinks.
September 22nd, 2009 at 6:38 pm
For once, Al wins the thread. You’re paying the rube tax, Matt.
This is the season for apple juice, apple wine and Federweißer. (Frankfurt is the traditional capital of Apfelwein, too, and it sells at a couple of euro per litre.) And you’re in the only country that still sells Schweppes Bitter Orange. So, please, when in Germany. Prost!
September 22nd, 2009 at 6:41 pm
When I was in Munich, a liter of beer served in a public park was about 1/3-1/2 as expensive as a can of diet coke/bottle of water. Why is good beer so cheap in the parks of Munich?
September 22nd, 2009 at 6:43 pm
The German retail market is of course also much more competitive than the us one where Wal Mart as discount quasi monopolist can squeeze insane margins out of the poor.
This is of course utter nonsense. Walmart squeezes its suppliers so it can offer its customers low prices. That’s why it has been so successful.
September 22nd, 2009 at 6:46 pm
Walmart squeezes its suppliers so it can offer its customers low prices. That’s why it has been so successful.
Walmart tried and failed to crack the German retail market.
You know nothing, fuckface. Go away.
September 22nd, 2009 at 6:46 pm
Many things are cheaper in Germany.
The most drastic differences I have noticed:
generic herbal teas, 50 cents for 25 teabags, choose
mint, chamomille or rosehips
generic muesli, starting at 55 cents per pound, (1.20 per kilogram)
generic kefir that goes very well with muesli
If you want to maintain such habits in USA, it would cost about 10 times more (kefir probably only 3 times)
Generic seltzer water is very affordable, although in USA it costs about the same.
Then “generic premium chocolate”.
A pound of sugar is roughly 25 cents on commodity markets,
so the cost of sugar in a pint of sweetened beverage would cost about 3 cents.
Similarly, a pound of cocoa is ca. 1.50, so the cocoa in a bar of premium chocolate would cost ca. 30 cents. 2 dollars is perhaps a decent deal, compared with cereal that was raw material costs 5 cents per pound and cost 3 dollars per pound.
September 22nd, 2009 at 6:53 pm
Corn syrup is subsidized here, but sugar has way high tariffs. Sugar beet growers are powerful.
Therefore in other countries they can use real sugar for less than in the US.
Unless someone researches it carefully we do not know sweetener costs are higher in the EU. Their imported sugar might be cheaper than our subsidized corn sweetener, because corn sweetener is used here mostly because of the sugar tariff.
Mexican Coke doesn’t use sugar just because of taste. Sugar is CHEAP in Mexico
September 22nd, 2009 at 6:54 pm
Well, one thing that makes it so cheap in the US is that people drink tap water so a huge amount of soda can be produced from syrup for a few pennies (hence, the big gulp). Perhaps in the absence of competition from cheap soda at 7-11 and fast food places, the profit maximizing price for canned soda is closer to US beer prices.
September 22nd, 2009 at 6:55 pm
Walmart failed to crack the German retail market.
Who cares? It’s far more successful than any German retailer.
Now fuck off.
September 22nd, 2009 at 6:57 pm
“Diet Sodas don’t contain corn syrup though.”
Not relevant. As Coca-cola, you don’t want folks buying the Diet product because it’s cheaper. You want them buying it because of its different quality (lower calories). So you sell them at the same price point. Otherwise you risk brand erosion.
I’d suspect it’s to do with aftereffect of Coke having a plethora of independent bottlers in Germany up until 2006.
September 22nd, 2009 at 7:01 pm
European Fanta is the greatest soda ever made, drink it. take a break from that diet coke nonsense.
September 22nd, 2009 at 7:12 pm
Matt, lemme know when you buy a beer where you’re at.
September 22nd, 2009 at 7:20 pm
Since you’re in Europe at the moment, Matt, why don’t you walk into a restaurant/shop and ask them how much they pay for soda and why it’s so expensive?
Journalism. It’s not just done via web form.
September 22nd, 2009 at 7:27 pm
“European Fanta is the greatest soda ever made, drink it. take a break from that diet coke nonsense.”
The truth (at least the stuff I just had in Italy).
I don’t understand why Fanta doesn’t use the same recipe in the US. Most Americans would prefer it.
September 22nd, 2009 at 7:29 pm
Voldemix is fighting shadows again. Funny.
In the meantime, seeing that Apfelwein is EUR 0.99/litre in Aldi, I wish that they sold it in their US stores.
September 22nd, 2009 at 7:40 pm
Huh. MY drinks a ton of Diet Coke. And MY is “dismayed” when it is expensive.
MY does not drink regular Coke. And MY thinks making regular Coke more expensive through punitive taxes is a good idea.
Astonishing.
September 22nd, 2009 at 7:56 pm
My grandfather told me it was because Euros taxed sugar. That was back in the early 1960’s before corn sweetener this in answer to my query about why aranciata wasn’t sweeter
My guess is that they just kept the tax up to date with the product.
September 22nd, 2009 at 7:58 pm
#36/#41 Calm down a bit and asume just for a second that those other commenters might actually know a little about what they are talking.
The German originated hard discount model actually alows to “squeeze the supppliers” even more. It also alows a higher turnover with less staff. So prices and markup are lower even with constant return on capital. Fortunatly these days competition does not alow Wal-Mart type profits anymore. Used to be different, so unfortunatly at least Aldi actually also matches the business sucess of Wal-Mart, which is bad, not good from a whole society perspective.
September 22nd, 2009 at 8:01 pm
Also, if you had it out of a bottle or a can, there was a Pfand on it:
http://en.wikipedia.org/wiki/Container-deposit_legislation#Germany
September 22nd, 2009 at 8:07 pm
more important question…..why do does a smart guy drink this junk?
September 22nd, 2009 at 8:08 pm
my bad…apologies for the typo
September 22nd, 2009 at 8:31 pm
@53: Don’t worry, we could figure out that you surely couldn’t have been meaning “smart”.
September 22nd, 2009 at 8:34 pm
Calm down a bit and asume just for a second that those other commenters might actually know a little about what they are talking.
You certainly don’t have a clue what you’re talking about. And for God’s sake, calm down.
The German originated hard discount model actually alows to “squeeze the supppliers” even more. It also alows a higher turnover with less staff. So prices and markup are lower even with constant return on capital. Fortunatly these days competition does not alow Wal-Mart type profits anymore. Used to be different, so unfortunatly at least Aldi actually also matches the business sucess of Wal-Mart, which is bad, not good from a whole society perspective.
What “German originated hard discount model?” What are you babbling about? And Aldi isn’t remotely as successful as Walmart. Walmart is not merely the largest and most profitable retailer in the world. It is one of the largest corporations in the world, period.
September 22nd, 2009 at 8:54 pm
Indeed, they are inadequately chilled. And they’re expensive (only in restaurants, though everything is). And no free refills. And everyone is so thin (I flew back into Dallas a couple weeks ago and nearly passed out when seeing my compatriots after a few months away).
I realize there isn’t actually any sugar (or corn syrup) in Diet Coke, while there is in Coke – but it isn’t as if Coca Cola is going to implement a different pricing scheme between Coke and Diet Coke. So, yeah – I think corn subsidies do play a part.
That’s what I was going to say.
September 22nd, 2009 at 8:56 pm
Since you’re in Europe at the moment, Matt, why don’t you walk into a restaurant/shop and ask them how much they pay for soda and why it’s so expensive?
I second this.
September 22nd, 2009 at 9:03 pm
And everyone is so thin
Topping the EU Fat Stats, Germany Plans Anti-Obesity Drive
Quote:
September 22nd, 2009 at 9:06 pm
European Fanta is indeed better than any mass produced American soda.
No tax on American soda would double the price.
September 22nd, 2009 at 9:38 pm
I concur with those touting the goodness of Orange Fanta and Schweppes Bitter Orange/Lemon.
If you need caffeine have a coffee or espresso.
Otherwise drink beer.
September 22nd, 2009 at 9:41 pm
Distribution chains tend to be nationally segmented, even today, in the euro zone. I think I remember a seminar on the soda market in particular from about a decade ago. For much the same reason, wine is more expensive in the U.S.–regulation effectively divides the national market into 50 separate state markets. You can generally buy California wine more cheaply in Europe than in New Jersey, and can always buy European wine in Europe for about half of what it costs here.
September 22nd, 2009 at 9:49 pm
I hate follow with a second post, but on reading more of the thread, I can see there’s a common presumption that production costs–whether reflected in the cost of sugar, in the the cost of low-wage labor–might explain a large part of the difference. That’ws nonsense. Production costs for something like coca cola are a small, small fraction of the retail costs. Distribution, marketing and advertising, and taxes weigh far, far larger–with distribution most of all. I’ll pull numbers out of my head, but they cant’ be far off. The marking cost of making a can of regualar Coke (with sugar) must be 4 to 7 cents. The costs adding in the amortized cost of capital must be 11 to 14 cents, tops. You can forget about taxes or tariffs on sugar as having any meaningful impact on this one.
September 22nd, 2009 at 10:05 pm
I was recently in Sweden for about a week and while I was lucky enough to find Mountain Dew, it was 4 dollars a can. These were the US size can’s. I had to stop drinking soda in Europe because not only was I paying more for a can/bottle, but I believe the sizes are slightly smaller. The solution was simple though, drink more beer.
September 22nd, 2009 at 10:38 pm
In Greece and Italy it was simple to see: they have thriving local soda businesses and Coke is taxed to keep it from being a cheap alternative. I imagine the same tariffs are operating in other Euro markets.
September 22nd, 2009 at 10:55 pm
You got any link to back up that claim Charlie? It makes no sense whatsoever. Pepsi and Coca Cola for the EU market are produced within the EU and within EU tariffs are not alowed. The basis is made in Ireland to lower taxes with transfer pricintg fraudand the filling is done local usually.
September 22nd, 2009 at 11:01 pm
This post is, as others have said, deeply hypocritical. Here we’re reminded that conservatives aren’t the only ones who choose their positions based on their own interests, rather than principles. Matthew Yglesias is guilty of it himself.
September 22nd, 2009 at 11:12 pm
Why is inadequate refrigeration a problem? Only americans consider refrigeration a prerequisite for wholesomeness and freshness. Think of the electricity saved.
September 22nd, 2009 at 11:23 pm
I paid 3.80 CHF for a coke (abt. 12oz.) in a Geneva newstand in July. They were 2 Euros in the Paris metro.
Maybe its because its very expensive when the Coke distributor has to hire a bunch of guys on bicycles to restock the Coke. I suppose that’s why the bike lanes are painted red.
Over here, we use big, gas guzzling trucks on our wide highways to deliver the stuff.
September 22nd, 2009 at 11:43 pm
In the UK and France they have fairly high taxes on soda and some candies–both are taxed at the general goods rater, rather than the food rate. I wonder if that tax contributes to the lack of free refills in Europe, and if so, would soda taxes mark the end of free refills in America as well?
September 22nd, 2009 at 11:44 pm
Maybe its because its very expensive when the Coke distributor has to hire a bunch of guys on bicycles to restock the Coke.
When Jérôme Kerviel f-ed up at Société Générale (to the tuen of EUR4.9 billin) how long did it take them to jump through all the hopes needed to fire him? Imagine how much it costs to fire a Coke delivery guy, who decides he doesn’t want to deliver the Coke anymore.
September 23rd, 2009 at 12:19 am
“… and inadequately chilled beverages …”
I took a trip to Frankfurt a few years ago, and enjoyed it very much. But when I compared notes with another American at the airport, we had the same top response:
“You can’t find a fucking ice cube in this country!”
September 23rd, 2009 at 12:26 am
It’s probably the water:
http://www.telegraph.co.uk/news/newstopics/howaboutthat/2580762/German-water-is-most-expensive-on-the-planet.html
September 23rd, 2009 at 12:39 am
The implied self-satisfaction of being a diet drinker here is noxious. You’re going to come back across the pond and advocate that sugar but not diet soda be taxed, so can’t you spare us this post?
September 23rd, 2009 at 12:42 am
AS a general rule, ignore everything written by the telegraph. That article is as every telegraph article complete nonsense. Cities cashing in on water lol. To bad there are actual laws that forbid cities to make any profit on water. The private UK water on the other hand…. i am sure they will enjoy their “low prices” combined with high profit for another 2 years or so until everything completly breaks down.
September 23rd, 2009 at 12:59 am
Because they hate America!
September 23rd, 2009 at 1:06 am
When I was in Germany, I was told that it was mandated by law that soda had to be cheaper than beer.
But then again, I was also told by a guy wearing a Deschutes Brewery shirt that American beer sucked while sitting in a cafe that served Bananaweizen and Radler.
September 23rd, 2009 at 1:11 am
In Restaurants, one non alcoholic drink has to be cheaper than beer. Usually that would be the most unpopular drink: Water,not soda. The Restaurants themself usually prefer people to drink beer because they are more likely to drink more that way and drinks are the big profit machine in restaurants. They also often have contracts that require them to sell certain amounth of beer.
September 23rd, 2009 at 1:47 am
Oops. I have lived in Europe (Hungary, Germany, Austria) since 1988 and still haven’t bought my first Coke or any other soft drink. Will put this on my To Do list.
September 23rd, 2009 at 2:58 am
Purely lack of competition IMHO- when I was in Paris, you couldn’t even buy a Coke and cigarettes in the same store… you had to walk down the block to a similarly-overpriced tobacconist. They see these as items caffeine or nicotine addicts will pay anything for -thus an opportunity to screw them- while water is more a commodity. Thus, backpacking students always carry their own 1.5L bottle from home.
Of course these European shopkeepers are a cartel, like most retail business sectors in the EU… and since they’re operating in largely pedestrian areas, what choice do you have but to pay it?
Even the smallest hole-in-the-wall shop makes an upper-middle class income over there… and they do it by limiting competition, consumer choice, and hours.
And don’t bother to come at lunchtime… they’re not there.
September 23rd, 2009 at 3:26 am
Well, Voldemix’s hilarious self-pwning caps a thread built upon Matt’s temporary morphing into the Complaining American Tourist.
Fun fact: in the US, the Aldis are owned by Aldi Sud (Karl Albrecht’s bit of the empire) and Trader Joe is owned by Aldi Nord. Between them, the Albrechts are worth about $35bn.
when I was in Paris, you couldn’t even buy a Coke and cigarettes in the same store…
’sfunny: when you’re in most of the US, you can’t even buy beer, wine and liquor in the same store. And in Europe, a quarter pounder with cheese is called a Royale with Cheese.
September 23rd, 2009 at 3:40 am
I think the aggregate of the answers on MR are right:
1. Coke isn’t more expensive in Europe: If you go to a large super market and buy a 1.5 l bottle of coke it’s about the same price as in a large US supermarket (around 1.15 Euros, down below 1 Euro when it’s on sale).
2. Coke in restaurants is more expensive in Europe… because you don’t have the choice to drink tap water instead. Restaurants calculate to make a larger share of their profits on drinks than their US counterparts.
September 23rd, 2009 at 3:56 am
You are buying your sodas in the wrong places.
From restaurants, bars or station vending machines the prices of coca cola products are really high (2.50 Euro a can/glass). From vending machines not in public areas or supermarkets you get them for about 60 cents a can. 1.5 litre bottles for just under 2 euros.
September 23rd, 2009 at 4:01 am
Cola, or anything else in the world, costs what people will pay for it.
September 23rd, 2009 at 6:27 am
Thanks for posting, definitely going to subscribe! See you on my reader. Please come visit my site Chesapeake Business Directory when you got time.
September 23rd, 2009 at 7:39 am
Coke in restaurants is more expensive in Europe… because you don’t have the choice to drink tap water instead.
They have tap water in Europe.
September 23rd, 2009 at 7:57 am
“Basically, wine and coke are priced the same at restaurants because they are both drinks.”
Exactly. German consumer agencies regularly criticize this, but without success yet.
“[Walmart]’s far more successful than any German retailer. Now fuck off.”
Afaik Aldi’s market share in the US is rising faster than that of Walmart. And Walmart Germany was shut down because they couldn’t compete. Also, fick dich selbst, du Trottel!
“Expect that the vat on food and beverages in Germany is 7%.”
But only for stuff bought at the supermarket, or for take-away at restaurants! That’s why McDonalds Germany asks you if you want to eat at the restaurant, or want to take it home. They have to pay different tax rates for this! So, if you want to increase McD’s profits, always order for take-away! The price you pay will be the same. I admit that’s a bit ridiculous, but that’s the way it is…
“Why is good beer so cheap in the parks of Munich?”
Economies of scale! Only weak demand for beverages other than beer.
“I had to stop drinking soda in Europe because not only was I paying more for a can/bottle, but I believe the sizes are slightly smaller.”
Are you aware you paid a deposit for every can and bottle? You should have returned them to a dealer and collect your money! We Krauts don’t like that garbage lying around everywhere, and the deposit shall increase recyclying. And it does. Go to any free open air concert, or other event, and you’ll see kids and homeless collecting cans and bottles.
“In Restaurants, one non alcoholic drink has to be cheaper than beer. Usually that would be the most unpopular drink: Water,not soda. The Restaurants themself usually prefer people to drink beer because they are more likely to drink more that way and drinks are the big profit machine in restaurants. They also often have contracts that require them to sell certain amounth of beer.”
Yup, that’s true, too. Most restaurators received subsidies or credits when starting their business when they signed long term contracts with a brewery.
“Fun fact: in the US, the Aldis are owned by Aldi Sud (Karl Albrecht’s bit of the empire) and Trader Joe is owned by Aldi Nord. Between them, the Albrechts are worth about $35bn.”
So much for ‘Walmart über alles!’
And one more point:
“inadequately chilled beverages” are more healthy than icecold stuff, and the energy consumption of refrigerators depends on the cooling temperature. Whenever you think that your Diet Coke should be colder, think of global warming, Matt!
September 23rd, 2009 at 8:08 am
Btw, doesn’t the CocaCola Company use different distribution systems in the US and in Europe? I understand that Coke is produced in the US in factories owned by the company. Here in Germany, afaik only the basic stuff is produced by CocaCola, and regional subcontractors mix it with carbonated water and bottle it. This has to result in higher costs than in the US.
September 23rd, 2009 at 8:55 am
I went to the grocery store yesterday and purchased a 4 pack of Coke Zero (the small plastic bottles). I paid 2.49 euro. That’s .62, or .91 cents USD per bottle.
Restaurants can charge what they want on Cokes, and house wine is usually the cheapest. Sparkling water is also vastly cheaper here, than in the States. I pay .13 cents for 1.5 liter bottle of Acqua Frizzante. Try finding that in the states!
September 23rd, 2009 at 8:56 am
Not only is it more expensive, but Coke Light isn’t nearly as good as US-made Diet Coke. The tastes just aren’t comparable. And in response to your question from yesterday, Northern Europe is considerably flatter than Southern Europe owing to the effect of frequently being covered by miles of ice during glacial periods over the past million years. I have no idea if it has anything to do with cycling habits.
September 23rd, 2009 at 8:58 am
Also, in Italy, they have their own sodas, like Chinoto. Since Coke is an American brand, they probably charge more. Most Italians I know drink water, or an Italian bev. (at home) Of course, with fastfood, people drink Coke.
September 23rd, 2009 at 8:59 am
I just think it’s because the beer is not fizzy, weak piss and therefore drinkable. Why bother with soft drinks?
September 23rd, 2009 at 9:11 am
CO2 is a byproduct of ethanol production. Ethanol producers sell as much CO2 as possible into the market for carbonated beverages.
September 23rd, 2009 at 10:02 am
Most of Northern Europe is indeed flatter, but the relevant question is whether it’s appreciably flatter where people actually live. Marseilles and Milan, for example, have some hills nearby but aren’t especially hilly themselves.
September 23rd, 2009 at 11:21 am
I’m one of those “drinks a ton of Diet Coke” people, and thus every time I come to Europe I find myself dismayed at the cost of soda over here.
Perhaps Europeans who by and large enjoy socialized health care and the benefits of security and peace of mind that affords its citizens, think it wise to make it costly to poison one’s self. That statement should be written thusly:
I’m one of those people “who will contract costly and deadly disease because I’m addicted to the toxin aspertame”, and thus every time I come to Europe I find myself dismayed at the cost of my “asperatame addiction”.
September 23rd, 2009 at 11:29 am
Seriously… its probably safer to be addicted to heroin than the poison MY drinks… What an idiot.. Do your homework MY. http://www.mpwhi.com/aspartame_awareness_weekend_2008.htm
September 23rd, 2009 at 12:10 pm
As someone who grew up in Belgium and now lives in the US, here some additional thoughts:
1. There is a thing in Europe called grenadine (a berry syrup you mix with water, it’s delicious, real cheap, and from what I understand, healthier than soda.) Grenadine goes way back and might have made things tough for soda when soda showed up.
2. Europe is not a free refill culture (and is not much of a dining out on a regular basis culture), so think about the effect on the economics of cans/glasses of soda there.
3.Along the same economics lines, European kids do not see soda adds at school.
I feel your pain, Matt, but may be it’s time to switch to light beer (it’s cheaper than diet coke, check it out).
M
September 23rd, 2009 at 12:20 pm
How come no one has mentioned the obvious reason: socialized medicine!
also, the French hate us, so, they jack up the price on America’s favorite soft drink.
also, why is a true american spending ANY money in those foreign countries, anyway?
Unless you go there to cricize your country and its president, like what’s-her-name.
September 23rd, 2009 at 2:31 pm
[...] is expensive in Europe. Matthew Yglesias: I’m one of those “drinks a ton of Diet Coke” people, and thus every time I come to Europe I [...]
September 23rd, 2009 at 3:15 pm
become an adult; stop drinking soda.
September 23rd, 2009 at 3:57 pm
The taste of grenadine is beyond subtle and so sweet your teeth ring, and in America it’s incredibly expensive.
September 23rd, 2009 at 4:08 pm
Here in Munich, Germany we have a store named Real (pronounced Ree-al). I am currently drinking black currant juice which was cheap and flavorful and healthy.
Right now the Oktoberfest is going on and the beer is cold, tasty, and strong (two liters and I was staggering). Down the street I can go to my local gas station (Allguth) and buy beer, soda, juice, and carbonated water (aqua con gas) by the case (6 to 20 bottles) for next to nothing. So, Matthew where the hell are you shopping at?
September 23rd, 2009 at 5:19 pm
“The expensive soda and inadequately chilled beverages are definitely an aspect of the European social model that I would not want to see imported to the land of the free.”
I guess the shoe is on the other foot, Matt? Not too long ago, you were fine with increasing the already burdomsome tax on beer, with a regressive excise tax. But when it comes to your vice, damn! Everyone to the barricades! No tax to my candy!
September 23rd, 2009 at 6:32 pm
The taste of grenadine is beyond subtle and so sweet your teeth ring, and in America it’s incredibly expensive.
Not diluting it enough? Americans have relatively little exposure to drink concentrates that aren’t either frozen or in powder form, and I’ve seen lots of people overdo it with Teisseire or Vimto or similar.
September 23rd, 2009 at 7:15 pm
@ricardo: Your site rails against aspartame, MSG, “deadly Splenda”, and even vaccinations. Great stuff. Thanks for the laugh!
September 23rd, 2009 at 9:57 pm
America does not know mineral water, the preferred drink of Europe. Could be that Coke products are therefore only bought by the stalwart fans in Europe and Coke captures the consumer surplus of the fans. That would be a wonderfully contra-intuitive result…
September 23rd, 2009 at 10:50 pm
Buying Coke in Germany is like buying Budweiser in Zurich. Expensive and regretful.
September 24th, 2009 at 6:57 pm
PLEASE could we import this part of the European social model? Maybe then I wouldn’t be spending half my day (I’m a family doctor) treating obese adolescents and young adults with type 2 Diabetes, who are likely to be going blind and experiencing kidney failure by the time they’re 50, because cheap soda (thanks to cheap/subsidized corn syrup) is quite literally killing them. Just one more reason the Europeans are healthier than we are, besides that little detail of actually having functional health care systems.