Sales of America’s most popular soft drink, Coca-Cola, are experiencing a setback in Switzerland: a number of major retailers, as well as the national train company SBB, have been pulling a plug on it — though for different reasons.
This move, however, has nothing to do with Donald Trump’s tariff policy but, rather, with the cost of these drinks manufactured in Switzerland.
What is the issue?
While the drink is quintessentially American, it is manufactured under license in various countries — including Switzerland.
But as is often the case with Swiss-made products, they are more expensive than the same or comparable ones manufactured abroad (mostly because wages paid to Swiss workers are quite a bit higher than in other countries, which is reflected in prices).
This is the case with Coca-Cola as well — retailers have to pay more for cans and bottles manufactured in the industrial suburbs of Zurich than for exactly the same product made in foreign countries.
‘Parallel imports’
Swiss retailers have reportedly tried to negotiate lower prices with the Coca-Cola supplier in Switzerland, but to no avail.
The first Swiss supermarket chain to ditch the supplier is Denner.
The retailer, owned by Migros, was unable to secure a better deal from the manufacturer in Zurich and now “prefers to import its bottles from Germany to avoid the excessively high prices of ‘Swiss-made’ products,” as reported by public broadcaster RTS.
This is not a new move for Denner.
Ten years ago, it decided to cut costs and import its Cokes from the Czech Republic.
The tactic worked well, as Coca-Cola Switzerland finally agreed to sell its bottles manufactured in Zurich at Czech prices — that is, considerably cheaper.
But this deal, apparently didn’t last, and Denner is now turning to a foreign supplier again.
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What about other Swiss retailers?
While it is negotiating with the Swiss company, Denner’s parent company Migros has been replacing Coca-Cola with Fanta and Sprite produced in Turkey.
A sign attached to the beverage shelves informs customers accordingly.
As for Coop, it is importing Coca-Cola from Poland, while it too is negotiating with the company.
Lidl and Aldi are reportedly in negotiations as well.
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What is the SBB’s issue with Coke?
The national train company also decided to no longer serve this drink in its restaurant cars or sell it in convenience shops at its stations.
This move, however, has nothing to do with pricing.
Instead, the company made a conscious decision to replace Coke products with Swiss beverages.
“We deliberately decided to show our Swissness,” said SBB spokesperson Carmen Hefti.
Therefore, customers will be able to taste Vivi Kola, a Coke-like drink manufactured in Eglisau, a municipality in canton Zurich.
Like Coca-Cola before it, a bottle of Vivi is priced at 5.40 francs.
