The 5-Cent Coca-Cola
In 1886, when Coca-Cola was first invented and placed on the market, the price for a glass at the soda fountain was 5 cents. When Coca-Cola was put into bottles, the price was still 5 cents. It remained so for more than 70 years despite cost increases to produce Coca-Cola. Why was this?
Mainly because it would have cost too much to retrofit all of the soda vending machines that were designed only to accept nickels. In addition, there was the massive amount of signage that would have to be replaced. And don’t forget the consumer that would have revolted against a 100% increase from a nickel to the alternative—a dime.
Because of the way Coca-Cola was distributed through various bottlers, it’s difficult to track exactly when the price increase occurred. By the late 1940’s, bottlers that had been charging 80 cents per case were now charging dealers 90 cents to $1 a case. Where Coke was sold over the counter, this resulted in per bottle prices of 6 to 10 cents. The change for vending machines did not come until 1959 when vendors were produced that could take dimes. To remedy this, storeowners installed “honor boxes” beside the machines where the customer was expected to drop an additional 1 to 2 cents, to make up the price difference after they placed their nickel in the vending machine.
It’s interesting to note that Bob Woodruff, the head of Coca-Cola in 1953, wrote to his good friend and the newly elected president, Dwight Eisenhower, asking him to influence the Treasury Department to issue a 7.5 cents coin to solve his perplexing price problem. Obviously this didn’t happen and in 1959 there was the first official price hike for bottles of Coca-Cola in vending machines in more than 70 years from 5 to 10 cents.
And to think that now, you can pay more than $1 for a bottle.
You’d think, though, after all these years, that just about every vending machine would take bills, pennies and even debit cards.
Ahh, the good ‘ole days. I’ll bet the honor boxes were more successful then.
Speaking of which, it was only 25 years ago when my Mom and I used to drive just outside town to buy ears of corn. A farmer put a wooden wagon full of corn near the side of the road, with an honor box for payment. He rarely came up short.
A Coke was only 5 cents for over 70s years? Crazy.
Interesting bit of history.