Costco Stops Selling Coca-Cola
Coca-Cola is the largest soft drinker manufacturer in the
world. Costco is the largest warehouse club operator in the U.S. As of
now, the two companies are not doing business together following Costco’s
decision to delist Coke’s products in its clubs.
to Bloomberg, the warehouse club said it took the action because “Coca-Cola
has not provided Costco with competitive pricing so that we may pass
along the value our members deserve.”
Coca-Cola declined to comment on the story but said it was
looking forward “in a spirit of fairness” to resolving the dispute.
The Associated Press reported that the beverage brands
no longer being sold at Costco include “Coke Classic, Cherry Coke, Black
Cherry Vanilla Coke, Diet Coke, Coke Zero, Sprite and Squirt, Dasani
Water and Vitamin Water along with several energy drinks.”
Coca-Cola said it plans to double the number of what it calls “boost
zones” or areas where it will work with retailers and
foodservice operators to make the company’s products more visible.
ago, the brands did so well you didn’t have to concern yourself to a
certain degree to this level of detail because the growth was just easy,"
Lauren Torres, an analyst with HSBC Holdings, told Bloomberg.
"It’s a more complicated business than it used to be."
and Pepsi-Cola lost market share over the past year, according to Beverage
Discussion Questions: Which party is hurt more by Costco’s
decision to stop selling Coca-Cola products? Does this dispute say anything
about the state of trade relations/balance of power between retailers
and manufacturers today? How do you think the trading partners will resolve
- Costco stops carrying Coke products – The Associated Press/Forbes.com
Stops Restocking Coca-Cola Products in Dispute – Bloomberg
Uses Boost Zones to Build U.S. Soda Sales – Bloomberg