Coke price rise to hit vending machines

File photo / Suppled

Grabbing a can of coke from the vending machine is about to become more expensive in many parts of the country.

Provender NZ, which has cold drink vending machines in 6000 locations around the country, has been hit by a 41.7 per cent increase in the cost of cans in the Coca Cola range.

Provender Managing Director Philip Horrocks said the company had been told by Coca Cola the hike - not inclusive of GST - was to cover an increase in the cost of goods.

As a result Provender is passing its costs on to its many franchisee owners who are in turn passing it on to the consumer.

For many office workers that means the cost of a can of coke from the vending machine will increase from $1.50 to at least $2.

In comparison, cans sell in dairies for anywhere between $1.20 and $2.70 - although most are under $2. At the supermarket the cans are not sold separately but when bought in bulk and during a special - such as the one at Foodtown at the moment - they can work out to be as cheap as 79c each.

Provender franchisee Paul Robinson told the Herald he had no choice but to pass the costs on to 70-odd locations where he has cold drinks machines in Auckland.

In a note stuck to machines he says the new selling cost of $2 reduces the selling price margin by more than 8 per cent. He then goes on to say if people would prefer the Pepsi range of products, which are cheaper, he'd be happy to initiate the change.

Mr Robinson also says it also appears Coke's own vending machines are still selling cans for $1.50 which is unfair. Coca Cola's acting corporate affairs general manager Bruce McEwen would only say that products are supplied to Provender under a "normal arm's-length arrangement".