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OJ cheaper as Not from concentrate?
OK so I am in the Chicago land area. I like orange juice... more accurately I LOVE orange juice and I prefer Minute Maid Orange Juice over Tropicana. So I have tried to figure out the cost of concentrate vs not from concentrate and discovered its actually cheaper to buy the 1 gallon of not from concentrate than it is to buy the concentrated oj. How can this be...? Don't question me about the math as to this was my major in college.
1 Answer
- NormanLv 510 years agoFavorite Answer
I won't question your math as you are correct. Even though it's counter-intuitive, orange juice made from a concentrate is in fact cheaper than straight orange juice. Here's why:
The process of concentrating orange juice does more than just remove water. It also removes a thin layer of oil with the water, and that oil is recovered and sold as a flavoring ingredient to companies that make flavors. It's called orange essence oil, and it sells for enough money to allow the Tropicanas and Minute Maids of the world to sell their orange juice at a discount over the unprocessed version. Plus, there's also a small savings to those companies in transportation fees because they ship the concentrated orange juice in tanker cars to the north and do the diluting and bottling there. So their trucking costs would be about half of what the ''not from concentrate'' cost is.