> I worked for Lucozade (UK Gatorade) for a while. Our total cost, delivered to retailer, of a bottle was 12p. We sold it to them for min 50p and they sold it f

> I worked for Lucozade (UK Gatorade) for a while. Our total cost, delivered to retailer, of a bottle was 12p. We sold it to them for min 50p and they sold it for at least £1. FMCG goods have typically awful margins on them for retailers. A 50p markup sounds good, but consider that out of that 50p the retailer has to cover transportation costs, salaries, cost of display, cost of retail space, etc. Supermarkets are not exactly raking in profit. And it's not such a rosy picture for the brand manufacturers either. The 20p raw cost of supplying the bottle of Lucozade doesn't include advertising expenses, which for branded products tend to be substantial (after all, that's how they become brands in the first place). Lucozade's parent company, GSK, makes a lot of money, but nearly all of that money comes from bio-tech and pharma. They don't make nearly as much money from Lucozade, and there was actually a story a week ago that they're trying to offload the brand[1]. [1]:http://www.thisismoney.co.uk/money/markets/article-2274545/GlaxoSmithKline-looks-selling-drinks-brands-Lucozade-Ribena.html http://www.thisismoney.co.uk/money/markets/article-2274545/G...