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View Full Version : the end is near



jerr2429
01-21-2007, 09:16 PM
I work for pepsi and we had a general sales meeting last week that said because the cost of aluminum is going up we will be changing over to 12pk 12 oz plastic bottles. You may have already seen these at wal-mart. This changeover will start sometime at the end of this year. We already have pepsi, diet pepsi, dew, mist, lipton tea, aquafina and twister orange. But we also still have them in cans. We are doing an introduction to the regular supermarkets as a test. Hope everyone likes this idea. the retail is $4.39.

Blue Efficacy
01-21-2007, 09:23 PM
I like cans, but if I can get 12 pk 12 oz bottles for a similar price, I can deal. If $3 or less sale prices are not to be found, I'll be drinking a whole lot less pop.

fusion
01-21-2007, 09:46 PM
Pepsi introduced the 12pk PET into stores here at the beginning of the year, at a $3.99 retail.

Twister Orange - that's a surprise. I didn't think that brand was strong enough for such a short-coded package.

Rob The SURGE Drinker
01-22-2007, 12:51 AM
we have had pepsi, Diet pepsi, dew, and diet dew in theese packages for a while, but will this be like a total phase-out of cans?

Troy The Vault Drinker
01-22-2007, 12:57 AM
I HOPE NOT.. i personally think sodas taste better in cans.

KanKing
01-22-2007, 07:13 AM
This is very bad news thinks the KanKing. What will this country do wothout the aluminum can?

jerr2429
01-22-2007, 08:56 AM
They will keep certain flavors in cans and bottles like the core brands of pepsi, diet pepsi,dew and mist. They will still run sales but at best will be 4 for $11.00. Twister orange was a suprise for me to when i saw it but when its on sale it does sell very well, i can't say the same for grape and strwberry.

mofizz
01-22-2007, 10:06 AM
You've got to be kidding. While PET bottles are growing and cans are on the decline, cans are not going anywhere and they will not just be produced in the core flavors. Here are a few reasons:

1) Vending. Can machines are still vital to a soft drink company's vending sales.

2)Out of date. Cans keep way longer than bottles. Try to keep Mug Cream in date with PET.

3)Volume. Bottles are still more expensive to make than cans. Pepsi is not about to pull the plug on something relatively cheap to make despite increase in COGS. While cans are are relatively low margin compared to PET, they make up a chunk of a bottlers volume.

4) Pricing. Cans vs. Bottles. $2.99 for 12 vs. $4.39 for 12.

Every bottler would love to make the can dissapear and do what jerr2429's company is doing, but I just don't think it makes sense. We too are looking into phasing in more varieties in 12oz 12pk PET, but we are not going to replace our cans with them.

greg
01-22-2007, 10:18 AM
Originally posted by mofizz:
You've got to be kidding. While PET bottles are growing and cans are on the decline, cans are not going anywhere and they will not just be produced in the core flavors. Here are a few reasons:

1) Vending. Can machines are still vital to a soft drink company's vending sales.

2)Out of date. Cans keep way longer than bottles. Try to keep Mug Cream in date with PET.

3)Volume. Bottles are still more expensive to make than cans. Pepsi is not about to pull the plug on something relatively cheap to make despite increase in COGS. While cans are are relatively low margin compared to PET, they make up a chunk of a bottlers volume.

4) Pricing. Cans vs. Bottles. $2.99 for 12 vs. $4.39 for 12.

Every bottler would love to make the can dissapear and do what jerr2429's company is doing, but I just don't think it makes sense. We too are looking into phasing in more varieties in 12oz 12pk PET, but we are not going to replace our cans with them. 1.VENDING- Vital to the extent of having a place to go with damged cases and close dated product. 20oz Vending is Huge!

2. Out of Date- Volume will be adjusted for "just in time inventory" type methods. No Longer will the warehouse be loaded down with product. It will probably result in a shift of Bottling responsibilities to the bottler. i.e. One plant responsible for producing Mug CS for 4-5 other bottlers to keep cost down.

3.Cans Cheaper?? If that is so then why the change in attitude towards aluminum cans? Remember the discussion concerning China and India and there effects on the global demand for metals?

4. It will be hard for consumers to get used to but Before last summer I thought $2 a agallon gas was expensive......Now I see it as Cheap!

mofizz
01-22-2007, 10:40 AM
Good points Greg. 20oz vending is bigger than can vending but still compromises a decent share. I don't think you know what you are talking about regarding warehousing however. Just in time inventory and making one plant in charge of slow moving items for a large region will just take the cost of goods up because that just adds a middleman. Bottlers are already responsible for making/buying what they need. Its not like our suppliers just send us what they want. Pepsi warehouses today are not "loaded down". I'm just saying cans are not going to die tomorrow. Remember too that gas is price inelastic unlike soda. People will stop buying the amounts of soda they do if prices go sky high.

David J.
01-25-2007, 04:44 PM
I've noticed this packaging is becoming popular in my area.

jerr2429
01-25-2007, 08:21 PM
The 12 oz plastic bottles fit in the can holders in the can vending machines the only thing to be changes is the cover of the machine.

The new thing pepsi is saying now is

"less items, less space, more profit."

NJ and PA are going to be test markets for all of these things. Since i have put the 12 pack bottles on my shelves they sell better than cans even being more expansive.

chrisok
01-26-2007, 02:53 AM
Originally posted by greg:


4. It will be hard for consumers to get used to but Before last summer I thought $2 a agallon gas was expensive......Now I see it as Cheap! [/QB]Incidentally, I paid $1.59/gallon for gas today. Haven't been so happy to get ripped off in awhile.