Coca-Cola costs up to 42% more in Israel than US, according to receipt analysis; six-pack costs up to 37.5% more in Israel

TEL AVIV, Israel , February 20, 2014 () – Coca-Cola costs more in Israel than the US, according to an examination by "Globes" on the basis of receipts sent by readers. US consumers pay NIS 4.50-5.50 for a 1.5-liter bottle of Coke, compared with NIS 6.30-6.40 paid by Israelis -- 38-42% more.

The comparison was made between the cost of Coke at Wal-Mart, Cosco, and Target in the US and Shufersal Direct and Mega Direct in Israel. The cost of Coca-Cola Zero is 44-49% more in Israel and the cost of Coca-Cola Diet is up to 66% more.

The difference exists after taking into account differences in content and packaging, currency conversion, and adding 18% to the US (to cover VAT in Israel).

The "Globes" investigation found that the cost of Coca-Cola in a six pack is 34-37.5% more in Israel than in the US: NIS 30.70-31.90 in Israel compared with NIS 23.20 at Costco.

A can of Coca-Cola costs 230% more in Israel than in the US: NIS 3.30 compared with NIS 1.20. The cost of a can of Coca-Cola at a kiosk or convenience store in Israel can go as high as NIS 9, more than six times the cost in the US.

Central Bottling Company Ltd. (Coca-Cola Israel), owned by Mozi Wertheim is the Israeli franchisee of The Coca-Cola Company (NYSE: KO). Production is carried out in Israel from imported concentrates. Central Bottling Company's royalties to The Coca-Cola Company are estimated at tens of millions of dollars a year.

As a private company, Central Bottling Company's financials are unknown, but market sources estimate that it has a very high gross profit margin of 70%, and that Coca-Cola is the company's most profitable brand. The company also owns juices maker Prigat, bottled water company Neviot, Tara Dairy Ltd., International Beer Breweries Ltd., which is licensed to brew Carlsberg, Tuborg, Stella Artois, Guinness, and other brands, and holds the Israeli franchise of British dairy brand Muller.


(c)2014 Globes (Tel Aviv, Israel)

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