Hundred dollar oil to hit soft drink makers hard

As petrol prices temporarily rose above the dreaded $100 per barrel mark for the first time this week, beverage manufacturers have revealed their concerns over the possible cost implications for their operations.

The British Soft Drinks Association (BDSA) said that while rising commodity costs were never welcome, higher oil prices would not only significantly impacted transportation and energy spending, but packaging as well.


Plastics – often derived from oil – are currently the most important material for soft drink packaging, with the increased per barrel cost likely to be felt throughout the industry.

During 2006, an estimated 68 per cent of carbonated beverages, 93 per cent of bottled water, and about 90 per cent of dilatable products using the product, according to BDSA figures compiled by analyst Zenith International.

Food Production Daily