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View Full Version : coke bottlers versus Sam's Club



julia
03-07-2006, 02:25 AM
a coke bottling plant rep just told me that if I buy Coke products from Sam's Club and put them in my vending machine that I own it would be illegal because I am not selling Coke from the bottling plant in his territory.
Does he have a point or is it bogus?

Mr Zabe
03-07-2006, 04:23 AM
Just my arm chair guess. smile.gif
First,if you out right own a pop machine whether it be Coke,Pepsi or what ever,I believe you may need to strip the signage from the machine. The actual machine you can stock it with what ever you want.(The reason,you would be advertising coke products and selling non Coke products.)

Second,as well, if you buy the Coke products directly from the bottling plant from another territory and had them shipped (commercial truck) then the local bottler would have an issue. The local bottler has the territorial rights as granted by Coca Cola to sell Coke products.

Now if you buy from a local wholesaler or a retailer a quantity of cases or cubes of soda pop, you would not be infringing on the local territorial rights of that Coke bottler. As a customer of a whole sale or retail outlet, the local bottler could not enforce it's territorial rights on you but the local whole sale or retail outlet. I believe legally if you buy whole sale or retail soda pop from local vendors, the local Coke bottler has no legal right to stop you from doing from vending Coke products from your privately owned machine.

I know our fellow board mates will chime in with more feed back. smile.gif

[ 03-07-2006, 03:41 AM: Message edited by: Mr Zabe ]

BottleBoss
03-07-2006, 08:26 AM
SCREW THE LOCAL COKE DEALERS. THEY DO IT TO EVERYONE THEY CAN!

boodoo
03-07-2006, 09:40 AM
The Coke rep is wrong. Since you bought them from a retailer you own them and can re-sell if you want. There may be tax or deposit liabilities but that is between you and your government.

the saint
03-07-2006, 10:43 AM
No the information the Coke rep gave you is wrong. If you own the machine outright you may place whatever you care to place in the machine short of alcohol. You do not need to change any graphics on the machine no more than if you have a coke sign on a door of a c-store that is from Coke and says "push" and customers buy Pepsi.
On the other hand, If you were to have a coke truck deliver to you from say north dakota then yes that would be illegal, TO THE BOTTLER DELIVERING OUTSIDE HIS AREA, not to you in any way shape or form. This is called transshipping, the coke bottler would be in a heap o' trouble from Coca-Cola hq. They would have to pay fines to the local bottler, I do not know how much it is in SD but in OK it is around $10 a case.

wonkapete
03-07-2006, 11:40 AM
Funny that I had a similiar conversation with a friend this past weekend. I was over at a coworker's home and he had an old '70s coin operated slider Coke cooler. I asked about it. He said in the 70's, his dad had a TV repair shop. He wanted a Coke machine. Back then, you leased the machine, then eventually bought it. Well, the local Coke bottler sold the cokes to him at a higher price than he could get them at the local wholesale grocer. He complained to Coke. They said, sorry. So, he paid off the machine and started buying the cokes himself. The coke guy was pissed but there was nothing he could do since the machine was now his.

greg
03-07-2006, 12:01 PM
The Saint brings up the most important question. What is the real staus of your machine. Do you actually have full title to said machine? If so screw the local bottler and do what you please. If it is a lease that Coke provides you then you must adhere to the contract and purchase drinks from the bottler or they wil have the right to take the machine back any any given time.

I think we went through this issue with TAN MAN last month.

Mr Zabe
03-07-2006, 12:32 PM
I believe we all are on the same page. :D

Ram0n C0keah0lic
03-07-2006, 01:43 PM
I think that maybe Coke reps act in that way because they take charge of the vending machines, they supply it, they fix it if something's going wrong in the machine, and the vending machine is property of the Coke bottler of your town, like the coolers also.

My recommendation is... (although is a very expensive recommendation), if you want to buy sodas from Sam's Club, buy a soda vending machine that doesn't belong to Coke or Pepsi, so you can supply your machine without restrictions with Coke, Sprite, Pepsi or any other brands that you want to offer to your clients.

[ 03-07-2006, 12:47 PM: Message edited by: Ramón Coca-Colero ]

the saint
03-07-2006, 02:01 PM
Ramon in the first sentance of the thread it states they own the machine. If they own it outright it doesn't matter where the machine originally came from or what graphics are on machine. They can put whatever they please in the machine and purchase said products from where ever. If it is a lease/ loan then yes the Coke rep is right, as you say here and as I preached on the {shutters in disgust} Tanman thread a while back.

DrPepperYummy
03-07-2006, 04:29 PM
I think everyone should consider also that maybe she is dealing with an individual salesman who is making comission of sales direct to her for the vending machine and does not get comission for the sams club because it could be another salesmans account... so he's just trying to keep the money in his pocket versus another salesman.

I do find it weird that she "owns" the machine and gets supplied from a distributor instead of purchasing the product at a local store when its on sale... I have to assume they fill it themself and coke doesn't do it for them at this point, so what benefit would you have paying over 2.50 a 12pack when most places have 4/10 sales monthly.

Dr. Galaga
03-07-2006, 06:58 PM
I feel like I'm back at this thread (http://www.bevnet.com/bevboard/cgi-bin/ultimatebb.cgi?ubb=get_topic;f=15;t=000589) ! :(

Mr Zabe
03-07-2006, 07:15 PM
LOL
Doc I would not wish that thread on my worst enema(oops Freudian Slippers).LOL Speak about a nasty board flash back. :rolleyes:

[ 03-07-2006, 06:16 PM: Message edited by: Mr Zabe ]

SamC
03-07-2006, 08:52 PM
Originally posted by julia:
a coke bottling plant rep just told me that if I buy Coke products from Sam's Club and put them in my vending machine that I own it would be illegal because I am not selling Coke from the bottling plant in his territory.
Does he have a point or is it bogus? He has no point whatsoever.

The local Sam's Club, like every other retailer, obtains Coca-Cola products from the one and only Coca-Cola bottler which has the right to sell the product in that location. In this free country, you can then take this product that you purchased and do whatever you wish with it, including resell it at a profit. Even including taking it into another bottler's territory and reselling it for a profit.

The only illegal thing would be for a bottler to directly sell to you, knowing you were going to take the product to another territory, and that is a matter between the two bottlers, not you.

The machines that Sam's sells, you will notice, are "generic", not marked with Coke, Pepsi or C-S's logos. This is because the Coke bottler does own the copyright to a "Coke machine" in a defined territory, but that is all.

Tell the bottler to go pound sand.

julia
03-07-2006, 11:00 PM
Thanks for all the replies. This has been enlightening. Now not to repeat the Tanman's thread but I am having a real problem with the Coke Bottler to wants to sell me $.90 20oz products for my own machines and the account I am going into is used to paying $1.00 for their 20 oz Coke products. The Pepsi bottler is more reasonable ($.71 for 20 oz). I need both Coke and Pepsi in this account. Should I introduce 16.9oz bottles or raise the price to 1.25 for 20 oz? or use 24 oz bottles from Sam's?
Your thoughts panel?

RunWithDaLilGuy
03-08-2006, 12:11 AM
find a third party wholesaler that wholesales 20oz

fusion
03-08-2006, 03:43 AM
If you put different size bottles or charge different prices for different brands out of the same machine, you'll probably tick off some customers.

Are you doing more volume with the Coke brands? Or the Pepsi brands? If the Coke brands are doing more, you can afford a lower profit per bottle.

Sam's Club is set up for small businesses to purchase items and resell them. The rep is trying to fool you.

You could always contact the Coke bottler again - maybe they will lower their price to be more competitive with the Pepsi bottler, or they may ask you to purchase larger amounts to receive a volume discount. Or they may refuse to change their prices at all. Wouldn't hurt to ask.

fusion
03-08-2006, 03:44 AM
Originally posted by DrPepperYummy:
I think everyone should consider also that maybe she is dealing with an individual salesman who is making comission of sales direct to her for the vending machine and does not get comission for the sams club because it could be another salesmans account... so he's just trying to keep the money in his pocket versus another salesman.
Not all salespeople get comission.

SamC
03-08-2006, 07:51 AM
Originally posted by julia:
The Coke Bottler to wants to sell me $.90 20oz products for my own machines and the account I am going into is used to paying $1.00 for their 20 oz Coke products. The Pepsi bottler is more reasonable ($.71 for 20 oz). I need both Coke and Pepsi in this account. Should I introduce 16.9oz bottles or raise the price to 1.25 for 20 oz? or use 24 oz bottles from Sam's?
Your thoughts panel? Your Coke bottler is practicing a form of price descrimination, selling 16.9s and 24s to the public at a low price, but only selling 20s under vending and convienience store contracts, or at a high price to you. Find a friendly store, probably your best bet is an independent supermarket or c-store and have him buy extra and sell to you for a small profit.

fusion
03-08-2006, 03:42 PM
Chances are, that small c-store is paying about the same price.

Immediate consumption packages demand higher prices across the board, in wholesale and retail. People are willing to pay $1.39 for 20 ounces of cold soda, even when 67.6 ounces of warm soda is 99¢.

20oz also delivers a higher margin to the retailer than most other packages. When a store sells 12 packs at 2/$5 or 5/$10, chances are they aren't making any money off of them. They make it back on other items in the store, including cold drink items.

Also built into the price is things such as... increased merchandising time. I can put up 4 6 packs of 16.9 ounce bottles in about 10-15 seconds (even faster if I stack the case on a display). It's a lot more time consuming to take 24 bottles from a case and put each one in the cooler. A Super Wal-Mart can take someone over an hour just to fill the coolers.

You also have to factor in the costs of the cooler or vending machine that holds the cold soda, and the personell it takes to deliver, pick up, and repair these machines.

julia
03-09-2006, 07:22 PM
There was a misunderstanding with the bottler. He thought that I was going to use HIS machines to put product from other than his bottling company.
He didn't ask and I didn't have a chance to clarify. SO...he will give me a fair price to put his product in my own machines.

A happy ending!
Julia

Ram0n C0keah0lic
03-09-2006, 07:46 PM
Great! smile.gif

It's good to know that you and your Coke rep are now in good terms!

Communication is the key...

[ 03-09-2006, 06:47 PM: Message edited by: Ramón Coca-Colero ]

fusion
03-09-2006, 09:29 PM
Great news! Thanks for updating us.