View Full Version : How will 2003 be to 7up?
01-08-2003, 05:32 PM
As well all know Pepsi has dumped this classic brand for that soleless crap Mist. The question I ask you fellow bevboarders is how will 7up fair this year? I think that due to the transition from Pepsi to 3rd-tiers that it will be on paper atleast a devistating year in sales for 7up. Not to say that that the bottlers picking it up arnt great. Atleast around here I am quite sure they will do a great job. But it is a fact that 7up is gonna lose ALOT of fountain placement. Infact in my area Coke and Pepsi are the only ones with fountains anywhere. I have never had RC or any other non- Coke/Pepsi brands in fountain. Also 7up may lose some shelf space to Sierra Mist. Although I believe that the new distributors will truly care about the brand in a way that Pepsi could not I do wonder if this brand which has seen numbers dwindling will be able to maintain dignity in its sales from this point on. Another major point is it losing vending space in machines. This is quite obvious at my school where 7up has jsut been romoved. Around here ABC has a few vending machines but I would say they are outgunned 15-1 by Coke and Pepsi. Although I really hope that this transition goes well for 7up I also realize that the truth of it is that this brand has lost alot of shelf, fountain, and vending space and that will strongly impact sales. Also some areas are experiencing a blackout of 7up as it is transitioned between Pepsi and the new bottler. This only further damages 7up and gives Pepsi a chance to convert. I hope that 7up gets a Superbowl ad out to counteract Seirra Mist. I would hate to see a crappy wannabe un-inovative brand like Mist replace or even take a dent out of a proven quality brand like 7up. I also hope Coke moves on the offesive with Sprite to keep Sierra Mist from gaining any ground.
01-08-2003, 09:05 PM
We at the salute have gotten a lot of reports that the new bottlers of 7up are racing Cherry 7up to market as well as dnL in order to capture shelf space as quick as they can. I tend to think tha DPSU is having bottlers roll out stuff as quick as they can just to grab that all precious shelf space.
I tend to think too that the new bottlers *do* care because in a lot of situations, 7up is the best thing they have going for them. (ABC has Dr Pepper in some areas, but mostly, ABC has 7up as their flagship brand in a lot of places, and with the 7up/Pepsi fiasco), this may FINALLY give ABC (and DPSUBG) the motive that they need to really push the products they way they need to.
01-08-2003, 10:41 PM
Your right about that Cherry 7up, it was impossible to find here until ABC got 7up. And like I said before I know that ABC and others are gonna work alot harder than Pepsi ever did so the question is more of how will they overcome the fountain/vending machine issue? Can the new dists. pull 7up out of its current slump or will it fall further?
01-08-2003, 10:46 PM
There's no way that 7-up will keep the numbers that it had a year ago. ABC will try to keep them up the best expect like Surge said about the fountain, and vending machines. As for the privated distrubator like us, I already know that the number are going to be awful for 2 reasons. 1. Being that 7-up has lost alot of shelf space especially from the conveince store end. Example, take the Holiday sets this year, I just got them in today and all the space we get for 7-up is a measely 4 facings. Last year Pepsi got a whole shelf, now they get that whole shelf for Seirra Piss. 2. Since we don't pay for the franchise, DPSUBG are not giving us any support for this year as a way to make us pay for the addition of 7-up. To me this is the stupidest time to do something like that. All we can do is go into stores full price and sell as is. We can't even do any promotions ( good anyway )cause we won't make enough money to do it. Oh well, give it time and let our customers be told by there customers on what products they want. Just look at AW and Sunkist it took a few years, but they lead there catagories not, by a little, but they crush the competition!
01-09-2003, 01:41 AM
Where I work the new 7-UP dist has several cases of 20oz singles sitting in the back room but no cooler space unless they can squeeze the 7-UP into the Snapple case. Around Bradford, PA 7-UP was hard to find. 7-UP should do well in other towns in NY around me as the distributor for Cro-pac products (Sunkist, A&W, 7-Up) have managed to snag large amounts of shelf space and endcap displays last year. Still no dnL though.
Tommorrow is my first day off this year and I will be taking a non work related road trip and plan to check on the Sierra Mist/7-UP situation.
01-09-2003, 02:20 AM
The numbers will obviously be hurting, especially in areas with weak 3rd/4th tier distributors. They just don't have the muscle to demand the shelf space, the displays, coolers, racks, and so on.
Areas with already strong/well developed 3rd tier, like the Mid-Atlantic, will probably be able to prevent too much hemmoraging of the numbers. Since Pepsi is practically giving away Mist, they will probably get a good market share, but with no profits to show for it.
7-Up is already part of ads in the area I work in, due to the DPSU bottlers' 7-Up franchises in adjoining areas. The 7-Up brands should be included in any future sales programs they put out there.
I don't see 7-Up in too many fountains, so I don't see them losing that business. Where I do see them getting trounced is in the vending/cooler venues, especially in areas where there are no current DPSU bottler coolers or vendors. They've done a good job of securing facings in the chain convenience stores, so they should just transition right over to the DPSU bottler from the Pepsi bottler.
And like Fizzman said, just look at Sunkist/A&W. DPSU transitioned them from Pepsi and Coke bottlers after Slice/Mug/Barq's/Minute Maid came along, and the brands can hold their own now.
DPSU really needs to step up to the plate and spend give of their money to market 7-Up brands -- especially to the smaller bottlers, so they can get the shelf space, coolers, vendors, and so on to grow brand 7-Up into something that is a core brand.
I'm also curious if DSPU will ever get an exclusive contract with a major chain... like Coke in McD's, and so on.
They have a cola and diet cola.. RC/Diet Rite. They've got an orange.. Sunkist. A root beer - A&W. They've got Hawaiian Punch, Canada Dry/Schweppes. All they really need is an iced tea. They used to sell Tetley in cans (I thought it was the best damn canned iced tea out there), but that's gone.
01-09-2003, 03:58 AM
Although the next year will be an interesting one for this brand I have no doubt that 2004 will really show us how this transition went. I mean everybody is gonna be forgiving when 7up takes a big hit this year. But by 2004 investors and people liek us are gonna demand that 7up hold up. It seems unfortunate for this brand that this transition had to happen at a time when quite honostly 7up is having trouble competing. I mean in 2001 7up droped 7% in unit sales, that is a big drop. This is a good solid brand that is quite deserving of its position. Still I'm skepticle of if this brand will maintain a top 10 position in the future. One problem with them giving Sierra Piss away is that sometimes people get converted simply beocuse they get used to the low prices and never switch back. This could obviously hurt 7up and Sprite in the future. Still that doesn't always happen as we have seen with introductions like SURGE, and somewhat with Powerade. The thing that is working against Sierra Piss is its lack of innovation. It seems to me that people will buy it when its cheap but then switch back. Still the longer Pepsi can manage to give this crap away the more it will be ingrained in the minds of todays mostly fad-following soda buying public. It seems to me that the battleground will once again be in the 12-30 year old range. Teens like cheap pop and they don't usually come onto the scene with much brand loyalty. Pepsi it seems has used this to their benefit alot in recent years. Brands like Dew have sold not on flavor or quality but instead on an image. Dew or Sprite or Pepsi are all trying to sell us a personality not a soda. 7up to me has not defined itself enough as an image. The superbowl ad will most definatly give Piss a boost. But Pepsi is gonna have to work hard to keep momentum with the brand. As for the flavor extensions of 7up such as Cherry and dnL. It remains to be seen to me atleast if these will bring in new customers to the 7up brand or if they will simply feed off of existing 7up buyers further damaging the core asset , 7up itself. Dispite fair slae of Code Red I think that that very exactt phenominon happend. Code Red didn't convert many it just stole from regular due, which explains it fairly large drop. Sure brand extensions bring in a few new faces but do they truly justify the added costs? As I said earlier it will be very interesting to watch this category this year and I can't wait untill 2005 or so when the dust clears.
01-09-2003, 11:26 PM
I took a look around the Waverly,NY/Sayre,Pa area today. On the PA side of the border most convienence stores have a non Pepsi/Coke door. One chain had 7-UP and dnL (bottled by Pepsi Cola Bottling Pennsauken,NJ). The other chain still had 7-UP in the Pepsi door with the Sierra Mist. K-mart had a Pepsi section with SM, a Faygo section then the Coke section. Nothing else except Red Fusion,canned by Pepsi, stocked with Coke and a 2 liter shell with Cherry 7-UP sitting in the Faygo section. No Dr Pepper or any other non Coke/Pepsi brands. The grocery store next to K-mart had 2 liter bottles of 7-UP product in the second tier beverage section and all sizes of SM including a portable ice chest shaped like an SM can filled with 10oz glass screw top SM.
On the NY side Sierra Mist was in the Pepsi section and 7-UP was in the Jones cooler.
01-09-2003, 11:41 PM
7-up in the Detroit area is distributed by the American Bottling company and has been that way for along time. There marketshare will not be hurt in this area because they only have a tiny portion. 7-up is pretty much a joke around here and the people that work for them are not very reliable at all. They never get any display space unless they run a super hot ad which is very rare.
Overnight in my area this week, 7-UP disappeared from the shelves, replaced by SM. SM, BTW, offered at a discount below the going Pepsi rate.
Since two nearby counties have always had 7-UP in the hands of a non-Pepsi/Coke bottler, and that bottler operates here with other products, it should be an easy transition for them to ramp-up 7-UP production.
Has anybody been to one of the old Pepsi-owned restaurants (Taco Bell, Pizza Hut, KFC) lately? Pepsi retained about a 10% interest in them when they spun them off a few years back, and they often are ahead of the curve on what Pepsi is doing at the fountain. In my area they now have SM replacing 7-UP and Cherry Pepsi (which is truly vile) replacing Dr. Pepper.
01-11-2003, 04:43 PM
actually Pepsi still owns taco bell pizza hut and kfc they just spun the ownership to a newly formed company that pepsico is the sole owner of kinda the same with pbg it all has to do with tax write offs on profits and losses.
as far as the dr pepper in fountains everyone always thinks that it is coke is bad or pepsi is bad for not including it on THIER equipment in arenas and rest and stuff.
when the truth is coke and pepsi bid LARGE amounts of money for exclusive rights to be the drink pourer in the account and ( as in ok ) pepper can or will account for 35-50% of volume. dpsu doesnt want to pony up any chips into the bid so therefore dpsu doesnt get it in for free when pepsi and coke pay for it.
case in reference the new Ford center in okc (hockey arena concert and such) pepsi was going to put in bid ( excess 0f 2 mill) including pepper and told dpsu to pony up 25 % even though pepper would have easily taken 40-50 % of volume. dpsu said basically that they could ride the coattails of whichever bottler got the bid either coke or pepsi. well pepsi won the bid and pepper is not in the arena. nor is it at OU with coke for the same reasons. I am sure that with the changing from pepsi to coke at the other venues in town that pepper will do the same resulting in their riding of the coattails theory in the ground.
I am pretty sure it is that way elsewhere in the us and that is why you do not see pepper on fountains other than in rest. and c stores
01-11-2003, 09:34 PM
Does it seem likely that pepsi will also drop Pepper in the near future? To me it seems all but guranteed. They have that awefull Mr. Green now and it was launched much like Sierra Piss was awhile back. Back then I would have enever imagined that pepsi would drop 7up for Mist. But they did. So is Pepper next? Regarding those Yum Co. resturants around here they replaced 7up with Mist in their fountains 2 years ago and at the time it was the only place to buy Mist in my area. Although I wish Pepper would leave Pepsi by their own free will I do have some reservations about how well they brand could hold up if it lost Pepsi support. It seems to me that with Coke getting mroe agressive with Pibb and pepsi rolling out Mr. Green that Pepper might have to put up a real fight to maintain its distribution. To me this problem could all be solved if DPSU were to unvail its own fountain system and push it into resturants. If they did that and secured good bottlers like ABC in my area. And provided them with support. Then maybe DPSU could become a viable 3 player. however their dependence on Coke and Pepsi right now will always keep them in the backseat.
01-11-2003, 10:05 PM
In my area, Pizza hut and KFC have had Seirra Piss in fountain for a couple of years already. Seven Up or Dr. Pepper aren't the two fountains dropped by these companies or Pepsi at least. I don't know, but has anybody seen Hawaiian Punch fountain lately? Pepsi in my area Have dropped that to go with Fruit Works Fruit Punch. Also now that Country Time has been dropped, the fountain in this flavor will probaly be switched to Lipton Lemonade. How far will DPSUBG let this go on in the fountain line. They gotta stop relying on the big 2 for distrubation and start pushing ABC to get into it. The only bad thing is that ABC also don't want to get into it since it costs to much and they would have to hire a whole new staff to start working just on this part of the business. To me thats lazy! Since we've started selling 7-up for the past two weeks we've been recieving many phone calls from bars that still want 7-up in the tanks. We've been trying to find out how to carry them cause we want to, but ABC's fountain lady has been on vacation for the last 4 weeks. To us thats a crucial part of 7-up, the bars that is. Why would any of us even give Pepsi the chance to come in with their crap and take the business away from us. I know that we're much smaller then the other two, but we're also smart enough to pick and choose our battles that we know that we can win, and this is one of them.
01-11-2003, 10:13 PM
I'm in Duluth Minnesota this weekend and I noticed that ABC has Dr.Pepper and Squirt. To me it seems that I've seen way more pop machines then Pepsi, and the display space in grocery stores is all divided in to 1/3. Now DPSUBG should start waking up and go to the markets that ABC has all there lines and see just how much of a force that they could be if given to the hands of ABC. Just a example, in the pop machines for facings ABC has all flavors of Dr.Pepper not just regular like it is when it is with the other guys!
01-12-2003, 01:13 AM
No, Pepsi does not own the restaraunts anymore, saint. They don't own PBG, either. Both are publicly held companies, with stocks and everything. PBG and YUM are the tickers.
As far as distribution of Bag in Box or canister syrup, you don't need special trucks or people to handle it. Only if the amount of CO2 on the truck is a certain amount, then you need a Hazmat placard and the driver must be Hazmat certified. We have a fountain machine in one of our bulk accounts, and the bulk truck (tractor/trailer) delivers canister and CO2 to them all the time, with no placard, etc. It's just one pallet every so often.
Fizzman.. Does DPSUBG have some sort of control over ABC and the other DPSU bottlers? You mention them a lot, I thought everything involving DPSU brands came down from DPSU themselves, and the BG had no hand in other franchise territories.. just curious.
01-12-2003, 02:29 AM
I've been told by ABC that dpsubg does own some shares or something like that in the company, that gives them some say on what they carry, but as far as bag in a box ABC makes there own call on when it comes to getting into a whole new part of the business. I do now that ABC does have a cadbury rep checking on them all the time. We had a meeting in Dec and there Cadbury rep was the one who does most of the talking at that meeting. The one part of these two companies I can't figure out is that all of MN is done by ABC and there private distrubators (like us). But when I read about the Duluth market in the flyer we get from dpsubg they refer to this market as a dpsubg controlled market not a ABC market. I wonder if ABC ever gets all the flavors that dpsu owns if they step in and take it over. The only thing about that is that they get there pop from ABC out of the Twin Cities. I do now that if any of the private distrubators for ABC get to big then THEY can decide if they want to come in and take our rights to these products away! To me thats a pretty crappy thing to do when we've been selling these products and get to where it is and then all of sudden that they tell us is that they are gonna come in and do it. This has already happened to us once. they actually we're looking at doing this once they found out about 7-up. We've been trying to get them to make distrubator contracts so they can't just up and do this one day, but it's like every time we ask them about it, they say they are still working on them. This has been going on already for a couple of months.
01-12-2003, 10:05 PM
I think me and my fellow Minnesotan Fizzman as well as others on this board are in agreement on these points:
1.DPSU needs to get competent loyal distributors
2. DPSU needs to move away from Coke and Pepsi.
3. DPSU NEEDS TO GET INTO FOUNTAINS!
4. DPSU needs to help its distributors more than they current do
5. DPSU must act fast before Pepsi and Coke get thier own products to the masses and cause DPSU brands unfixable damage.
6. DPSU needs to make sure that their products are avalible in as many vending machines as possible
It seems to me that what DPSU does in the next few years could very much affect if they become a real #3 or if they fade into the sunrise. I hope they keep it real.
07-24-2003, 06:25 PM
Latest news, 7UP sales dropped 16% in the first half of this year.
07-24-2003, 10:55 PM
I'd say in a lot of areas 7Up is going downhill in sales, as in my local area, 7Up was distributed by Pepsi, and now our extremely weak 3rd tier has 7Up. I've seen no coolers, no machines, no nothing. Wal-Mart here doesn't even sell 3rd tier. Some Super WM's here barely bother. However, where ABC controls 7Up now in the areas surrounding Pittsburgh, you're seeing maybe 7Up drop some in sales, but what you're seeing is a major increase in shelf space and coolers. Almost every WM in Pittsburgh now has a 7Up cooler of some kind, and they're gaining shelf space. I think 7Up is dropping in sales, but at the same time, RC, A&W, Sunkist, Canada Dry and Squirt are getting stronger. ABC is also helping by putting Sun Drop and Big Red out universally in this region, along w/Cherikee Red now that they own Cotton Club.
Watch for a major increase in A&W, Sunkist, Squirt, and Canada Dry sales. 7Up will go down, but I think in time, Pepsi will jeopardize their relationship to keep Dr Pepper by what they did to 7Up and like Sierra Mist was unveiled, so was Mr. Green. The image was then retooled and Pepsi wanted their product instead of having to worry about limited market rights for classic products. Pepsi was stupid to drop 7Up where they could get it, and I think the same will happen for Dr Pepper. If that happens, then ABC will be a legitimate contender in almost all markets (except ones where Coke has DP, but I think they're jeopardizing their relationship w/DPSU as well).
08-02-2003, 02:14 AM
Wow Fusion if your numbers are right 7up is kicking ass! I expected ATLEAST 35%. Heck the were losing damn near that when they were with Pepsi. Considering the loss of placement in stores, vending machines, and of course fountain its amazing that they are doing that well!
08-02-2003, 11:33 PM
Our numbers are at the beginnig of june we were at 45% of what ABC wants us to be. they expected us to be at 75% of what Pepsi did last year, minusing the fountain end of the 7-up numbers we should be right were we should be if not alot better at the end of the year. Now that we're redeveloping the product as a core brand, not just another flavor 7-up will just become a stronger brand. Alot of the sierra mist in our area is closely dated and most of the 2ltrs are out dated.
08-03-2003, 05:23 AM
Promotions are starting to become prevalent for 7Up, as this week alone, I found Giant Eagle and Kroger running sales for $1.99 12 packs for 7Up products.
Apparently, Kroger also tried appealing to their RC Winchester area markets including Dr Pepper and Mountain Dew in this sale as well. In some areas, this sale will involve all 3 bottlers.
Eckerd almost every week anymore runs 7Up, A&W, Sunkist, and Canada Dry at 3 for $7 12 packs.
Getting the name out there in large promotions will help 7Up and its portfolio grow in the long run, and I think that they can do the one thing Pepsi and Coke can't do, and that's earn brand loyalty of some sort. Almost all of DPSU's brands are familiar names that most everyone has heard of and most were innovators in their line of drink. Earning this I think will make DPSU legitimate as a 3rd player, if not a greater one, because I think Pepsi will be more of a casualty in areas where DPSU gets stronger than Coke will.
In areas of PA in the Westcentral area, third-tier was almost dead in 2000 even. 7UP was Pepsi. Sunkist, Squirt, Welch's and Canada Dry were Herbco Coke. RC and A&W was it for them, along w/some more oddball things like Vernor's, Crush and Cherikee Red, since they couldn't find any other way to get on the shelves. Then CCE came, ditched Sunkist, Squirt and Welch's. Then Pepsi ditched 7Up. These areas never had 7Up, but the fact all these brands sold well has brought a lot of 7Up coolers and shelf space to them, and American's stock is rising. Coke in this region is the one that is hurting the most, and in some areas may soon be eclipsed in sales by ABC, who almost has the same amount of shelf space. ABC now has all the above mentioned products everywhere, and has brought this region Sun Drop and Big Red. Making such a transition here in this region only shows that in time, 7Up will pick back up.
Sierra Mist is a disaster waiting to happen for Pepsi. Truth is other than Pepsi and Mountain Dew, the rest of their products are doomed. Slice will be another soon one to most likely bite the dust. I have a feeling Mr. Green is the Storm of Pepper-like drinks. Something new is in the works, and when it comes, Pepsi won't hesitate to throw Dr Pepper out the door. third-tier almost nationwide will have some force, because 60% of the country they'd then control Dr Pepper. Pepsi wants to force DPSU out, and they almost have, except for their Dr Pepper rights, Schweppes rights, and some Sunkist and Crush.
08-03-2003, 09:25 PM
Did ABC bring Cherry Lime Sundrop to your area? That stuff is amazing.. I brought back a 6 pack of 16oz PET from South Carolina.. and I've had to ration myself to make it last longer. If I had known how good it was, I would have gotten more.
We just have regular Sundrop in Delaware.. and not even in the northern part of the state. It's in the Food Lions in the lower part of the state.
08-16-2003, 06:13 AM
No Fusion, no Cherry Lime, just regular for now, but seeing some more regional brands here like Sun Drop and Big Red all over is going to only help 3rd tier grow. ABC is doing something right in Pittsburgh, and they're doing it all w/o Dr Pepper too. (CCE won't let go). I wouldn't even want to see my area's numbers for 7Up sales this year, over a 50% drop for sure. I've heard people actually saying Sierra Mist replaced 7Up. I try to say 7Up's still around, just not in Pepsi's system anymore, and Sierra Mist just seems to do better.
In the long run, Sierra Mist is just another Pibb Xtra, Mello Yello, or any other imitation drink. The ones that invented the genre will prevail in the long run. Of course here, it won't happen unless Valley Beverages goes away and instead of picking and choosing whether to buy from ABC or RC Winchester, go w/ABC. If ABC bought out Winchester and ran out the Mountain Dew there, I seriously think ABC could take over the entire scene there. RC Winchester's done well, but ABC I think does a better job. Valley needs some coolers around, I can't find one anywhere here. Other than 12 packs and 2 liters which are around in sparing quantities in most stores in space, selection, and quantity, you can't buy 3rd tier in the Western 2 counties.
I saw someone mention above Hawaiian Punch being replaced by FruitWorks. What I can't figure out here is what fruit punch there even is. I see none of it out here at all, the only Hawaiian Punch I've seen is down in Davis territory, and in RC Winchester territory, and in Pittsburgh and Northcentral WV in the Pepsi system. Crossing the border into Bedford County, PA, I saw some Hawaiian Punch, but in Cumberland, there's none for either Valley or PBG.
08-16-2003, 12:17 PM
Fusion, I believe you are referring to cherry lemon Sundrop. I agree, it is a awesome citrus drink. CCBCC carries Sundrop in western NC and we had cherry lemon Sundrop in 20oz, 2ltrs and fridgepacks for about a year. We dropped it at the first of the year and picked up caffiene free sundrop. We also carry diet Sundrop.
Now here is a post that will not fit but I missed the Saint's fictional story regarding Dr Pepper riding Coattails in the Oklhoma market.
First, Pepsi does not own restaurants...period.
2nd during the negociations for the Ford Center, Pepsi which sells Dr Pepper in the OK area as a non franchised bottler, went to DPSU, showed them the RFP for the arena and requested support. DPSU agreed to support the brand so that Pepsi would not lose money selling the brand. Fact. Trust me.
Now comes the interesting part. At the same time or earlier Pepsi was attempting to gain the American Airlines Center in Dallas but had no chance for brand Pepsi with a brand share of 5% but did have a chance with Aquafina. When asked to reduce price for their water, they refused and now Dasani is poured. Feeling beaten they went to OKC with money from that deal and asked SMG what is would take to remove Dr Pepper from the arena.
Now lets remember, SMG demanded in all three RFPs that were sent to all three OKC bottlers that Dr Pepper MUST be poured. SMG took the Pepsi proposal, wrote a number and Pepsi did not flinch...I would have taken the money that SMG gets annually from Pepsi to keep Pepper out.
The total deal including the under the table cash to remove Dr Pepper is just over $100.000 annually. Now Pepsi just bought the pouring and naming rights to arena not marketing but stiffed the primary tenants the Blazer by not paying a nickel for marketiing.
Fact. in OKC, Pepsi sells Dr Pepper postmix and FACT Dr Pepper outsells Pepsi in their warehouse.
OU is a much different story. Much diffent.
Does Dr Pepper ride on some equipment YES.. but not willing to pay is total fiction.
08-17-2003, 03:56 AM
pepsi does own restaurants, considering that they still own a majority share in Yum! Brands, Inc, the corporation under which Taco Bell, Pizza Hut, Kentucky Fried Chicken and A&W Restaurants are owned.
Pepsi used to own the first three until they spun them off to form their own unit.
Saying Pepsi doesn't own restaurants is kinda like saying Coke doesn't own a vast majority of it's bottling system. Even if they aren't the OUTRIGHT owner, they can still pull strings better than Gipetto.
From the Lane Report
Tricon Global Restaurants Inc.
1441 Gardiner Lane
Louisville, KY 40213
www.triconglobal.com (http://www.triconglobal.com) CEO: Andrall E. Pearson
CFO: Robert Lowes
In October of 1997, PepsiCo spun off its restaurant holdings into a triumvirate which today is known as Tricon Global Restaurants Inc. Currently, the Tricon organization is made up of four operating divisions organized around its three core concepts: Kentucky Fried Chicken (KFC), Pizza Hut and Taco Bell. KFC is based in Louisville, Pizza Hut and Tricon Restaurants International ("Tricon International") are headquartered in Dallas and Taco Bell is located in Irvine, California
This is now known as YUM
Times are tough in the fast-food business, and Louisville-based Yum Brands (nyse: YUM - news - people ) (estimated 2002 sales: $7.8 billion) is searching for inspiration from consumers like these. The company, spun off in 1997 by PepsiCo (nyse: PEP - news - people ) and now the world's largest restaurant operator in terms of units, has restaurants in five major chains including Pizza Hut and Taco Bell in more than 100 countries.
Owners of PepsiCo Capital Stock as of 9/19/97 received one share of Tricon common stock.
Also Pepsi owns 40% non-controlling ownership of PBG.
08-18-2003, 10:41 AM
so you're trying to discredit me here? what, do you actually think you'll see KFC's starting to sell Coke or RC? Please. Pepsi will always have control over those franchises. They will always be split with Wendy's and they may very well win back Burger King after this lawsuit over Frozen Coke.
As far as I know, the only McDonald's to serve Pepsi is at Comerica Park in Detroit, Michigan. It's also the only Little Caesar's Pizza places that do as well.
Not meaning to discredit at all, just show the facts. That's the issue with posts, people tend to apply emotion when there is none.
Now, up until March of this, Coke was poured by a 12 unit Pizza Hut franchisee in Lubbock, TX. I agree with you that you wont see Coke at YUM but at Wendy's it will happen soon that they are 100% red. Pepsi has already opened the door at BK by selling in Aquafina as the bottled water and the suit just pushs it open a little more.
08-19-2003, 03:19 PM
Burger King is so messed up, when you look at it, they have Coke, then Aquafina, and Dr Pepper too. They work w/all 3 bottlers. I figure Coke must be real pissed off they're not marketing Dasani through BK. BK had Pepsi until 1982, and they may very well go back. I hope not though, because I don't like Pepsi or any of their products (I can drink Dew, but I may be the only person in the world who would prefer Mello Yello over Dew)
08-19-2003, 04:57 PM
well, so sorry that I used the wrong word SEVEN months ago. I should have used majority owner rather than sole owner. As far as Pepsi owning 40% of PBG it states in the 2002 annual report that and I will quote " with respect to pepsico's 68% ownership in the bottling group..."
As far as Pepper riding coattails it was said pertaining to the subject that I was speaking of. "fountain machines" it has nothing to do with I.C. or F.C. packaging. The info I stated in the ford center came from the man who signed the contract with the management group of the ford center representing PBG. now being I am not a reporter who has to get all facts checked and rechecked before saying something (as it is obvious you did since it took 7 months to point out the fact I used the wrong words) I went ahead and repeated what was told to me.
Furthermore if you can answer me in less than 7 months which dr pepper in the Pepsi warehouse out sells pepsi, would it be the the regular or the diet BNB?
08-19-2003, 05:04 PM
oh yeah another thing, if I am the people you were refering to in the showing of emotion in posting, I get up every morning and go to work and at the end of the week I collect my paycheck. I could really give half of a rats as s about the business, so therefore there is no emotion in what ever it may be I am writing about the company I work for. I really would rather spend time away from work away from it unlike yourself who wants to look up old reports in magazines and stock market reports about pop companies and cut and paste the in messages.
OK...I just tripped over your post and trust me it did not take me 7 monthes to find ownership information maybe 15 minutes. Sorry for the cutting and pasting it seems to have irked you.
I am not attempting to piss you off but as you did, I am repeating information told to me by the person who negociated with PBG from DPSU.
I agreed that Dr Pepper is on the FOUNTAIN equipment but they pay, really pay.
Here's your answer in less than 7 hours....it doesnt matter does it. Regular or Diet? Thanks for your unemotional input to this.
09-08-2003, 02:03 PM
A note about BK and Coke. Although the lawsuit hurt some feelings I have no doubt that BK will think with their heads. From what I hear when BK went Pepsi sales took a dive so they switched. If this is true then they would be insane to go back. Also in many countries Pepsi is quite weak so BK international would face an uphill battle.