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How Vitaminwater Priced a Billion-Dollar Exit
In 2007, Coca-Cola bought Glaceau, the company behind Vitaminwater, for $4.1 billion. That price tag wasn't based on bottles sold — it was based on a pricing strategy that turned a flavored water into a premium health product. This episode unpacks how Vitaminwater used segment-based pricing, scarcity framing, and a 'functional benefit' premium to charge $2.50 for what was essentially sugar water. Lucas and Luna walk through the key decisions: the 50-cent price gap over plain water, the limited-edition flavor drops that created urgency, and the brand architecture that let…
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