The Mystery of Nickel Coke

For 70 years, Coca-Cola maintained a price of five cents, defying economic principles of prices going up and down. This was achieved through a combination of factors, including an initial marketing strategy to position Coca-Cola as an affordable product, a contract signed by the company with bottlers that fixed the price of syrup at a nickel forever, and a successful advertising campaign that promoted Coca-Cola specifically at five cents. Additionally, the proliferation of vending machines that only accepted nickels further reinforced the price. However, inflation and the end of the gold standard eventually led to the demise of nickel Coke, with prices gradually increasing in the 1940s and 1950s. Nonetheless, the legacy of nickel Coke includes Coca-Cola's widespread presence and its emphasis on high volume sales.