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Coke left looking dumb over smart-vendor tests

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Soft-drink makers including Coca-Cola are studying 'smart' vending machines that will allow them to boost prices by wireless remote control if it is hot outside and cut prices if business is slack.

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Coke confirmed it was conducting tests, but quickly assured customers price increases were not imminent.

'The issue of the pricing is something we don't see happening any time soon, if ever,' Coke spokesman Rob Baskin said. 'Our plans for the technology are not about raising the price.' News of the research drew a snipe from Coke's main rival, Pepsico.

'We think machines that raise prices in hot weather exploit consumers,' spokesman Jeff Brown said.

Analysts said Coke would be hesitant to impose large heat-related price increases for fear of alienating customers in a highly competitive market.

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Brazilian news magazine Veja in October quoted Coke chairman and chief executive Douglas Ivester as saying the desire for a cold drink increased during summer heat, so 'it is fair that it should be more expensive. The machine will simply make this process automatic'.

Coca-Cola appeared to backtrack late last week, denying any plan to vary prices and saying it instead was exploring 'innovative technology and communication systems that can actually improve product availability, promotional activity, and even offer consumers an interactive experience when they purchase a soft drink from a vending machine'.

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