Why did the price of a Coca-Cola remain a nickel for seven decades?

Between 1886 and the late 1950s, the cost of a Coca-Cola stayed fixed at five cents. This episode explores the unusual legal agreement between two Chattanooga lawyers and the company president that enforced this long-standing price stability despite global upheaval.

For seventy years, the price of Coca-Cola remained locked at a nickel, surviving major historical events including two world wars, the Great Depression, and Prohibition. This consistency was not an accident of the market but the result of a specific contract.

The pricing strategy originated from a deal struck by two lawyers from Chattanooga with the president of the Coca-Cola Company. This arrangement effectively prevented price adjustments for decades, creating a rare period of economic constancy in the beverage industry.

Source: Why The Price Of Coca-Cola Didn't Change For 70 Years | Planet Money | NPR