No more Coke at Costco

    

This isn't good news for me because I don't drink Pepsi.  No more Coke at Costco.


http://www.huffingtonpost.com/2009/11/16/costco-stops-carrying-cok_n_360045.html

We are regular Costco Shoppers, but have seldom purchased soda there. The sale prices at local markets, and the generic brands of some stores are always cheaper than Costco.

VERNOR's is carried by one local supermarket chain, and goes on-sale with the RC/A&W group (the third cluster of brands after Coke and Pepsi). I Mention that because Vernor's is usually $5 a 12 pack here, but right now that bunch of soda brands are 4 for $12 with a 5th 12 pack added for free if you buy 4. That works out to less than $2.50 a 12er... a real bargain for me !

When we do buy bottled water...now and then...we do buy the Kirkland (Costco) brand.

This can't be good for either company. Can't believe this will last too long. Wonder what the real issue is?

My guess would be that Costco is asking for/demanding a cost to them on Coke products equal to or lower than what Coke is giving one of Costco's competitors (perhaps WalMart).  That is usually what causes this kind of action.

From what I understand Coke doesn't offer much of a markdown and Costco doesn't mark it up a lot anyways and they don't make all that much from Coke sales anyways. They could use the space for higher margin products and I'm sure they would rather. Coke will be the one to buckle here....I don't think Costco needs Coke (not that Coke needs Costco) but to have Coke products in Costco is probably worth it even if they sell it to them at cost, almost as an advertisement. It's all about keeping the brand visible.

I just renewed my Costco membership but this does not alarm me in the least. We don't often buy or stock soft drink products for home use. It is just a power play. I wonder if it has more to do with packaging and Coke balking at creating a bulk package exclusively for Costco like Costco typically sells with many products.

Like others, I don't find Costco soda prices to be overly competative. However, I did notice that the Coke was missing on my last visit and wondered what was going on.

This sounds more like Sam's than Costco. 

Although products disappear at both places at the blink of an eye.

EatingTheRoad


From what I understand Coke doesn't offer much of a markdown and Costco doesn't mark it up a lot anyways and they don't make all that much from Coke sales anyways. They could use the space for higher margin products and I'm sure they would rather. Coke will be the one to buckle here....I don't think Costco needs Coke (not that Coke needs Costco) but to have Coke products in Costco is probably worth it even if they sell it to them at cost, almost as an advertisement. It's all about keeping the brand visible.

Based on some stories I've read about the CEO of Costco, I'd say this is true as well. He is insistent that his customers get better pricing than at a competitor.

Costco really plays hardball when telling manufacturers what they should be charging for their own product.

With some products they insist on representation on the floor by mfg employees at the expense of the mfg.

I shop at Costco but they have a practice that I really hate.

They find an item that sells well and then they have it copied under their own Kirkland brand effectively (affectively?) cutting out the company that built up that product.  

They'll sell them both, side by side for awhile and then the original mfg disappears and you're forced, if you want it to buy the Kirkland brand.

They are the Ebay of Big Box stores.

mayor al


We are regular Costco Shoppers, but have seldom purchased soda there. The sale prices at local markets, and the generic brands of some stores are always cheaper than Costco.

VERNOR's is carried by one local supermarket chain, and goes on-sale with the RC/A&W group (the third cluster of brands after Coke and Pepsi). I Mention that because Vernor's is usually $5 a 12 pack here, but right now that bunch of soda brands are 4 for $12 with a 5th 12 pack added for free if you buy 4. That works out to less than $2.50 a 12er... a real bargain for me !

When we do buy bottled water...now and then...we do buy the Kirkland (Costco) brand.

The only place around here I can find Vernor's, it goes for $4.25 a six pack. I pay it because no place else (that I know of) even carries it. Wegmans used to, but they discontinued it. I rarely drink soda, but when I do I'd prefer a Vernor's over anything else.

mar52


Costco really plays hardball when telling manufacturers what they should be charging for their own product.

With some products they insist on representation on the floor by mfg employees at the expense of the mfg.

I shop at Costco but they have a practice that I really hate.

They find an item that sells well and then they have it copied under their own Kirkland brand effectively (affectively?) cutting out the company that built up that product.  

They'll sell them both, side by side for awhile and then the original mfg disappears and you're forced, if you want it to buy the Kirkland brand.

They are the Ebay of Big Box stores.

 

Sounds just like wallyworld, don't they do the same thing?

ces1948

mar52


Costco really plays hardball when telling manufacturers what they should be charging for their own product.

With some products they insist on representation on the floor by mfg employees at the expense of the mfg.

I shop at Costco but they have a practice that I really hate.

They find an item that sells well and then they have it copied under their own Kirkland brand effectively (affectively?) cutting out the company that built up that product.  

They'll sell them both, side by side for awhile and then the original mfg disappears and you're forced, if you want it to buy the Kirkland brand.

They are the Ebay of Big Box stores.

 

Sounds just like wallyworld, don't they do the same thing?

Not quite, at least around here.  Wallyworld usually doesn't discontinue the national brand of the product; they just raise its price 10 to 15 cents higher than their own copy.  I noticed this recently with Hormel chili without beans, when they added their own version of chili without beans.  The only problem with their own version is that the ingredient list on the can is different than Hormel, so I doubt if there is any possibility that it could taste the same! 

The product I regret not being available at my COSTCO, or any in Georgia, is the multi-pack of Campbell's Italian Wedding Soup.  They had it briefly several years back (I suppose it was when the product was new to COSTCO, if not new on the market period, but evidently never resupplied).  I am told that no COSTCO in the state of Georgia carries this item at present. 
 
An ironic thing is that a recent COSTCO coupon book received in the mail had a coupon for the multi-can package.
 
You will understand that I can find a place to buy a Coke in Georgia but Publix is the alternate source for the soup and at a horrendous unit price for a smaller can.
 
Last weekend we were in LA (Lower Alabama) and passed through Montgomery.  The COSTCO there does not have the multi-can soup package either. 
 
I'd be interested in knowing just where is a COSTCO that has this soup! 

Looks like they'll be back on shelves "around Monday:

MILWAUKEE — Coca-Cola Co. products will soon be available again in Costco stores now that a pricing dispute with the wholesale club operator has been settled.
http://www.google.com/hos...IkGfCn7-110BwD9CGIF401

I wonder who blinked first?  I was a member at Costco for a year, but did not renew. With the amount I buy, I didn't see  the value (not enough savings). I have a coupon sent to members of an assn that I belong to for 3 free months at BJs. I have not activated it yet. People are shopping hard right now, and there are real deals in supermarkets, and Walmart. I've recently bought brand name cheese at $1.49 per 8 oz brick, Coke products at .79 per 2 lt (limit 3), seen Pepsi 2lt at .99 (no limit), brand name butter at $1.03 lb (it was buy 1 at reg and get 2 "free", and steals on produce too.
 
When I was selling travel, it was a constant battle to find and use the codes to get customers the deal. At my level, I had to find the deals to keep the customer, but the supplier hated it when I did. Costco must hate it when they are undercut, and they must have real clout with some suppliers. Certain "must have" suppliers, I expect, can beat back the most determined retailers. The only real clout, I think, that a retailer can have with a Coke or Pepsi is amount and location of shelf space. To not carry it at all could cost in member numbers. 

I'm sure it was Coke that buckled. There isn't as much incentive for Costco.

As far as them being undercut...that doesn't really happen too much...they've got quite the muscle to push producers around.

Costco is going more and more to their very popular Kirkland Signature house line of products. If they don't have a Coke knock-off already I bet they soon would.

They have already started selling KS brand of hard liquor. They recently introduced a premium tequila. I know I plan on stocking my liquor cabinet when we go to Disney World end of Jan. There is a Costco with liquor in Orlando. I used to buy liquor there when we lived in Calif.

MikeS.

It's a great place to pick up some good cheap wines.

I don't think Coke has to worry about competing with Kirkland Brands because they really don't make much money from what they sell at Costco...I'll bet they break even. It's about having the brand out there. They want you to have Coke at your Holiday party. They want you to have Coke at your cookout...next to the Lays potato chips, the watermelon and the hamburgers. Coke's most profitable item by far is the convenience store 20 oz bottles. If they can get you wanting one of those each time you stop in then they'll make a hefty return....and that they do my friend. Take a look at the 20 oz selection next time, notice now many of the "brands/flavors" are really just Coke or Pepsi...including the bottled waters.

In the 'related brands' coolers we find a number of good sodas at 'bargain prices' for the convenience store trade. RC, Big Red, all the Crushes, A&W, and if I am lucky even Cheerwine will show up at 99 or even 79 cents for a 20 oz.

Lately our local market has lumped VERNOR'S with the A&W/7UP group in their 4/$10 or 5/$12 12 pkg sales. That makes it a real bargain as it is normally $4.98 a 12 pk at the grocery and $4.98 a 6 pk of bottles at the package store.

Are there still people who drink Coke?

Coke does well outside the USA. Its hard to find Pepsi in other countries. I buy about 120k of Pepsi per year and my prices beat the big boys. I sell my 20oz btl for $1. lower than any one in Washington and Oregon. They both bib for my business and Pepsi got it.......................BillB

Michael,
  If the price is right, I'll buy regular or cherry Coke. But I don't do that often as I am quite happy with the generic Kroger brand cola. For me there is little difference between Coke/Pepsi, and Generic 'K' brand. I find the differences start to really show up in the Ginger Ales, Root Beers, and 'Other' flavors.

Michael Hoffman


Are there still people who drink Coke?

Apparently:
http://www.wolframalpha.c...ersus+pepsi+net+income
http://www.dailyfinance.c...-share-despite-strong/

mayor al


Michael,
  If the price is right, I'll buy regular or cherry Coke. But I don't do that often as I am quite happy with the generic Kroger brand cola. For me there is little difference between Coke/Pepsi, and Generic 'K' brand. I find the differences start to really show up in the Ginger Ales, Root Beers, and 'Other' flavors.

Al, about once a year I'll buy a 12 pack of caffein free diet Pepsi. It takes me a whole year to finish it.

There's nothing like a well-blended fountain Coke, and the only place around here I've found that isn't stingy with the syrup is Brandon's Diner.

I stopped buying bottled soda, except for the occasional Mexican Coke, Dublin Dr. Pepper or piña flavored Jarritos.

Michael Hoffman

mayor al


Michael,
  If the price is right, I'll buy regular or cherry Coke. But I don't do that often as I am quite happy with the generic Kroger brand cola. For me there is little difference between Coke/Pepsi, and Generic 'K' brand. I find the differences start to really show up in the Ginger Ales, Root Beers, and 'Other' flavors.

Al, about once a year I'll buy a 12 pack of caffein free diet Pepsi. It takes me a whole year to finish it.

Might want to pay attention to the expiration date on that diet pepsi. I think most diet drinks have a shelf "life" of about 90 days.

Only time I buy coke is to go with a bottle of rum.. Otherwise, it be Mt. Dew or Pepsi...
Whats Costco getting for a membership nowdays?

Vic
Plebian Membership is $50/year. Business Membership runs $100, but you get a kickback that more than covers the extra if you spend xxx amount each year.

ces1948

Michael Hoffman

mayor al


Michael,
If the price is right, I'll buy regular or cherry Coke. But I don't do that often as I am quite happy with the generic Kroger brand cola. For me there is little difference between Coke/Pepsi, and Generic 'K' brand. I find the differences start to really show up in the Ginger Ales, Root Beers, and 'Other' flavors.

Al, about once a year I'll buy a 12 pack of caffein free diet Pepsi. It takes me a whole year to finish it.

Might want to pay attention to the expiration date on that diet pepsi. I think most diet drinks have a shelf "life" of about 90 days.

What happens after the shelf life runs out? Tastes the same to me for a year.