Wanna buy Coca Cola? Well you CAN'T anymore at Costco
 

Interesting
I wonder how this will work out in the end....

Read Me Here at Yahoo

Costco nixes Coke products over pricing dispute
Costco nixes Coke products over price dispute, but analysts say negotiating tactic will fizzle

ATLANTA (AP) -- 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.

"Costco is committed to carrying name brand merchandise at the best possible prices. At this time, Coca-Cola has not provided Costco with competitive pricing so that we may pass along the value our members deserve," said a message on the company's Web site labeled "Price Alert!"

A Costco executive confirmed the move Monday but would not discuss the matter further.

The wholesale club operator, based in Issaquah, Wash., is not removing products like Coke and Diet Coke from store shelves, but it does not plan to restock them "until the matter is resolved," according to the message on its site.

Coca-Cola said in a statement late Monday it won't comment on ongoing negotiations but said Costco is an important customer and that it is committed to working with it "in a spirit of fairness."

This dispute is notable given the size and visibility of both companies, said Jim Hertel, managing partner at retail consulting firm Willard Bishop.

"It's not unprecedented, but it doesn't happen every day," Hertel said.

Earlier this year grocer Delhaize SA in Belgium said it would no longer stock at least 250 Unilever products because the food and consumer products maker was making "unprecedented" demands that would force retail prices up 30 percent, the two companies reached an agreement within months.

But the pricing pressure is more intense at Costco, whose business model is designed around offering lower prices than traditional retailers.

Hertel said most likely, the companies will recognize there is a mutual interest and will find a way to resolve it.

"These are complex relationships and hugely valuable," he said.

Who will win? Beverage analysts said don't bet against that famous logo.

"This is not going to bully Coke into changing its pricing strategy," said John Sicher, editor of trade publication Beverage Digest. "I think Coke is going to basically be focused on the right price and right market for its products, no matter what."

A storm in a glass of water.

will pepsi get in and take advantage ?

pepsi is better anyway :2 cents:

wow, pepsi should jump all over this, even at a "loss leader" price.

Yes but pepsi is an inferior beverage-I don't buy pepsi. Ever. I want coke. Not a "cola" drink.

But yes, Pepsi should jump all over this. Agreed.

Guess cocaine extract isn't cheap.

The "War on Drugs" is driving up pricing :)

That is pure opinion. Personally I prefer pepsi over coke.

Maybe costco should drop their membership prices instead...

damn right it is an opinion-mine :1orglaugh:1orglaugh

they should drop mach 3 razors as well..used to be a good deal there...now they have doubled in price

coke is way better than pepsi!

thats real newz :1orglaugh

Vote with your wallet.

i only buy water there, they have the best priced water around. its like $3-4 for a 36 pack.

It's a real drama.

$50 bucks on Costco

Now, there is an idea:1orglaugh I dropped my membership years ago, as you can buy for the same price elsewhere, without having to fork out the membership fee:2 cents:

I thought it was a proven fact that Costco water is bottled tap water. Am I wrong? It certainly tastes awful.

I glad you brought this up, because this is an OUTRAGE!

I agree with Coke actually. I don't think retailers should be able to demand what prices are. Influence? Sure, but not every product at Costco is a "great deal." They make their money from people thinking that everything is a great deal.

I guess I'll have to go to the Sam's Club accross the street from Cosco or Walmart

I prefer beer over coke and pepsi

Pepsi is the choice of a new generation :2 cents:

No doubt :2 cents:
Coke used to be good many years ago and then they started to fuck around with it and it now sucks ass.

Hopefully, in the end, Costco will tell coke to eat shit!

You will always find Pepsi in our fridge outside...never any coke products :)

i am the new generation and i prefer coke. to each their own.

however both parties let the situation get out of control to where its not even being sold. LAME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

it saddens me to talk badly on my beloved coca cola and costco :(

yeah exactly. i think its like $60 bucks or so. not really worth it unless you buy $20,000 in bulk items :1orglaugh

their gas is about $.10/gallon cheaper, but its also miles out of the way for me. if the membership was free i would shop there, but not when i can find the same stuff cheaper in other stores or even online

Fuck Costco. I can't stand that bullshit at the exit door where you have to show you receipt. I've walked out of there so many times and told the guy at the door to fuck off. I paid for these, you think I stole them then stop me.

I've started drinking v8 fusion. Talk about expensive. $3.49 per 46 ounce (1.36 liter) bottle.

I think the Costco membership is around 25 bucks for the basic membership. I will have to ask my wife as we just downgraded from the executive membership once it ran out because Costco never sent us our rebate check. We filed a dispute, but have not heard anything back as of yet.

The executive membership was around 100 bucks, but we were supposed to get rebates on the volume we bought.
We only buy meats, bulk items and toiletries so it is not worth the 100 bucks out of pocket.

Costco owns me.

Then again I rape their free samples weekly.

Please. Pepsi > Coke by a landslide. :2 cents:

Its $50 for the basic membership. Not sure what happened with your rebate check, but I always get mine. Its a no brainer to have the executive membership. Even if you don't spend the 5k annually so that the 2% cash back justifies your $100 membership, just tell Costco and they will rebate you the difference.

:1orglaugh:1orglaugh:1orglaugh
true that

Once in college I was hungry and went there for lunch. It was a good lunch consisting only of free samples. I also am a fan of the costco sample rape.

I agree.
I mean-what are they really doing anyway? They kind of glance at your receipt with oh, 100 items, and look at your cart for 2 seconds. Then they take a brightly colored highlighter and mark the receipt. Never got it.

Word to being you, sir. :thumbsup

I agree-I love both. I could live at Costco. I love that place.

i just so happend to be at costo yesterday and there was no coca cola :( i talked with one of the workers there and she said coca cola was selling to walmart for less.

i pay for the convenience, not the quality of the water. you thinking it tastes bad is all psychological though.

Never been to a Costco. Nearest one is almost 100 miles away.

Price squabbles...Costco thinks they're the shit, Coke thinks they're the shit, both are pretty much right but we'll see who gets hurt most by this. I'm going to go out on a limb and say Costco. It's not like their soda deals have ever been that good anyways. Almost every week one of the major grocery chains and/or Walmart has 12 packs on sale at relative to Costco's bulk rate. I can see people choosing to go to a grocery store every other trip over something like not being able to get the brand of soda they want at Costco, so I wouldn't be surprised if Costco loses a significant enough amount of business for this to turn out to be a stupid squabble on their part. As much as they want to seem like the price warrior, one of the things that I think sometimes hurts them is lack of selection, and this is a pretty major set of brands not to have in your store.

Europeans Billing Europe!
 

If you are into bargain shopping and have a Walmart Grocery store near you check it out - they have the best prices of anywhere...

You may have noticed this economic crisis has been very good to Walmart...

I like Dr.Pepper