To buy milk with just over 500% markup

I bought a 0.3 liter of milk at McDonalds today. This means SEK 48/litre, which is roughly 500% higher than what the milk costs in the VI store.

Unfortunately, it is not possible to buy milk larger than 0.3 size or of a quality other than KRAV marked milk. The company thus seems to choose the most expensive and least economical packaging available, which means expensive milk for the consumer. Mac Donalds could very well buy large quantities of milk in larger packages and sell in their mugs to bring down the prices of the milk.

What I find strange is that a Coca Cola only costs SEK 10, i.e. the markup is significantly lower. It's obvious that the company sets the prices to steer customers into buying soft drinks and they don't seem to want any substitutes…

Why is it that way?

Yes, Mc Donalds and Coca Cola certainly earn quite a lot from collaboration because it concerns gastronomic sales volumes around the world. Coca Cola is the world's biggest brand and McDonalds falls in 6th place. If you count food brands that are aimed at the end consumer, the two companies are second and first in the world!

Their products are not competing, but they can collaborate and take advantage of economies of scale. For them, it is easy to cooperate in marketing, lobbying and logistics - why should they let other players in?

Personally, I think it's a shame they don't serve more nutritious options like fruit juices and milk.

About The Author