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View Full Version : Pepsi Shift for new year



RunWithDaLilGuy
01-01-2003, 11:46 AM
Pepsi, in Michigan, is getting rid of the 8pack-20oz and replacing it with the 6pack 24oz. the consumer loses 16 ounces on the deal.

this is to make the 20oz a single serve package and to prevent stores from buying it en masse on the cheap. they, unlike coke, are also dropping the price of 20oz cases down to 14.00 a case from 16.75 a case. coke is still at 16.75 a case PLUS deposit.

happy new year, *******s.

fusion
01-01-2003, 04:55 PM
I always thought any 20oz multipack was a bad idea, for that very reason. The 20oz is the single serve package.. So why sell it in bulk, so smaller stores can circumvent your distribution system and get it cheaper at the grocery store? Never made good business sense to me.

Shatter
01-02-2003, 02:57 AM
Pepsi in north Texas has always sold 24 oz. 6-packs. Coke has always sold 16.9 oz. 6-packs. Coke's 16.9 oz. bottles don't have bar codes on them so people won't break up the 6-packs and try to sell them individually. I believe Pepsi's bottles have labels on them something to the same effect. It keeps little c-store owners from buying the 6-packs on sale at our store for $2.00 and selling the bottles for $1.09 each. Even though i'm sure some c-stores try to do it anyway.

SURGE
01-02-2003, 03:07 AM
Alot of small stores will sell the 16.9 oz or 24oz bottles most likely from multipacks as single serve. but they dont usually fit in the cooler quite right.

RunWithDaLilGuy
01-02-2003, 03:20 PM
i've talked with several store owners. unless the companies reduce the cost of the single serve product here (on average, 16.75-18.50 a case, plus depost (2.40)), they will continue to sell these "not to be sold invidually" sixpacks. some stores sell 20oz for $1.25 plus deposit, it's insane. the costs of single serve have gone up tremendously.

everyone here says that it just doesn't pan out the way you'd think. it's better to lose money from some c-stores than have to reset shelves, have two new sizes of shells and lose sales at larger grocery stores. no one buys the six pack half liters.

in addition, rumors abound that american here will be switching from canada dry to schweppes. pepsi will get canada dry and coke (who had schweppes) will get seagram's. i don't know why but eh, whatever. also, ABC will get dr pepper in mid 2003 i believe from coke and a year later, will get the rights to squirt. this is all in detroit.

fusion
01-02-2003, 04:24 PM
With immediate consumption (single serve, mostly) products, you can raise the price and not lose a lot of sales, unless the competitor has a lower retail. 20oz just don't go on sale at 7-11, unless it's an introduction of a new product.. Then just that item will be at a lower retail.

24oz, 16oz, 20oz plastic Pepsi all fit in the same shells. The bases of the bottles are identical, it's just the height that is different. Half liter, on the other hand, requires a smaller shell.

Based on many of the shelf sets I have seen in stores, they could handle a switch from a shorter bottle to a taller bottle with no problem. Here in Maryland, we are about to go from 16.9oz to 24oz, but most of the shelves can already handle the change without modifying the height. I think more adjustments will really be need to be made when the fridge packs arrive this summer.

It really suprises me that a Coke bottler would give up a Dr Pepper franchise, since Pibb can't even come close to competing with Pepper. Unless you're in a weak Pepper area.

The Seagram's switch makes sense, since Coke now owns the rights to the Seagram's name for use with the Ginger Ales and the mixers. But I have pretty much always seen Canada Dry aligned with the big DPSU bottler (except in New England, it's CCE). Schweppes is almost always with Pepsi, though I have seen it with Coke in Florida, but I suspect that will change if it already hasn't.

I think Canada Dry is the best of the three, followed by Seagram's and Schweppes. I just don't care for Schweppes.

Terry K
01-02-2003, 09:42 PM
Originally posted by fusion:


It really suprises me that a Coke bottler would give up a Dr Pepper franchise, since Pibb can't even come close to competing with Pepper. Unless you're in a weak Pepper area.
Actually, there's an area around Albany NY where this happened, DP shifted from Coke to Pepsi in the last few months. No one can explain it, but Coke hasn't unleashed Pibb Xtra(bad) on the market there yet.

SURGE
01-02-2003, 10:10 PM
Seems sorta folish to me for Pepsi to get any DPSU assets these days. After what they have done with 7UP isnt it fair to think that DP will be next? From what I have seen Coke does a better job pushing DP in its areas than Pepsi does.

[ 01-02-2003, 10:12 PM: Message edited by: SURGE ]

fusion
01-03-2003, 01:52 AM
I agree, Avery. To Philadelphia Coke, Dr Pepper was like breathing air. A vital part of the business, almost 10% of their sales. It's always part of any sales that Coke has, but Pepsi can never seem to get it so they have Dr Pepper on sale with the rest of their line at the same time.

RunWithDaLilGuy 2.0
06-02-2003, 01:45 PM
I would like it if some of these manus put out 4 oz version of their bevies. Sometimes I just want a snifter of soda, not a goddamn jereboam.

Terry K
06-03-2003, 07:23 AM
Originally posted by fusion:
I agree, Avery. To Philadelphia Coke, Dr Pepper was like breathing air. A vital part of the business, almost 10% of their sales. It's always part of any sales that Coke has, but Pepsi can never seem to get it so they have Dr Pepper on sale with the rest of their line at the same time.Same goes for Ozarks Coke in Missouri. They push the heck out of DP and are the highest per-capita bottler of DP in Missouri (16 straight years!!!!!) beating out CCE, ABC and Pepsi Americas for that honour in a smaller market!

I'm led to think that Pepsi doesn't really know what to do with DP since they have never had any success with their own product (eg Mr Green, Dr Slice, etc..) and Coke has had success with Pibb (not much), but some.

I think Pepsi isn't overly pushing DP since its a product they think can sell itself. Whereas Ozarks Coke though, pushes DP a LOT harder than they do Coke or any of its brands (They spend a LOT of co-op dollars with DPSU to push it), and they coupon, coupon, coupon. I'd guess they push 20-30% of their sales off of DP.

I do agree with the idea that PBG/PA will dump DP very quickly.

Its reported DP bought ABC and the other bottlers just so they *could* eventually move DP into the third-tier, and I'm inclined to think they'll move it from weaker bottlers who aren't pushing it. (although I can't say DPSUBG does a great job selling DP)