Costco stops carrying Coca-Cola products

[DainBramaged]

Costco customers may have to look elsewhere for Coca-Cola products now that the retailer has stopped carrying them because the pair are fighting over prices.

The public squabble between one of the nation's largest wholesale club operators and the world's largest soft drink maker is likely to fizzle quickly. But it reveals real tensions as retailers and product makers square off on prices.

As shoppers continue to grapple with the recession, retailers want to win their favor by giving them low prices. But that has been creating tension between product makers like Coca-Cola Co., who are working hard to maintain profit margins while meeting retailer demands.

Typically such negotiations take place behind the scenes, but once in awhile, a public dispute erupts.

"Beneath this surface of harmony, it's a dogfight out there," Gerry Khermouch, editor of Beverage Business Insights, said Tuesday at an investor meeting held by the soft drink maker at its hometown of Atlanta.

Retailers want to wield more power in determining pricing with product makers, who they depend on to stock their customers' favorite brands, Khermouch said.

Costco has been aggressive in putting up signs on store shelves and notices on its Web site.

http://www.msnbc.msn.com/id/33987167/ns/business-retail/

[MidwestRick]

1. Seems logical

Negotiate to a price both sides are happy with. If they can't agree on a price, the product isn't carried.

*shrugs*

I prefer Pepsi anyway. :)

[Warpy]

2. Coke has just given cheaper prices to other huge retailers

like Wally's and Target, to name just two. Costco wants the same break and until they get it, no more Coca Cola.

I use Soda Stream these days. Their diet cola is sweetened with Splenda and is better than anything you can find in a store.

[Sal Minella]

3. Like brown sugar-water has anything to do with anything?

People are scrabbling to find adequate nutrition to sustain themselves, and this is what makes the headlines in this country?

[dalaigh lllama]

4. Oh, that wonderful MSRP - manufacturer's suggested retail price

The article implies that Costco is negotiating with Coca Cola to lower their price to them, but I wonder if this is the case, or if Costco is merely arguing their right to sell the Coca Cola product at whatever price they damn well want.

Let me tell you how this works in the furniture world. We used to own a furniture store that discounted quality furniture. Major furniture lines wouls send us what they euphemistically called the Manufacturer's Suggested Retail Price -- what they, the wholesaler, wanted the retailer to sell their product for. If Store A was selling an item to the public for $500 and Store B (us) was selling the same product for $250, even tho both stores were buying it from the manufacturer for $125, Store A would bitch to the manufacturer (who, please note, was still getting the full price from both stores). The manufacturer would then come to us (Store B) and tell us if we did not sell their product at their SUGGESTED retail price, they would pull the line from us. IOW, even if you could make enough of a profit selling an item at a lower cost to the consumer, you were coerced into selling it for the higher price by the wholesaler.

Consumers in this country have no idea how much they've gotten screwed by these big outfits that have so much clout in price fixing with the manufacturers. Good on Costco, who's big enough to take 'em on.

[Bitwit1234]

5. Don't bother me

when I drink cola it is always Pepsi...not as sickening sweet as coke

[MindPilot]

6. Wonder if that will also affect Mexican Coke?

Made with actual sugar instead of HFCS -- the real "real thing".