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View Full Version : Mc Donald's To Sell Pepsi Brands



Mr Zabe
03-13-2007, 09:24 AM
This is great news for us Pepsi freaks.

CHICAGO SUN-TIMES :: Business :: McDonald's serving some Pepsi products (http://www.suntimes.com/business/293920,CST-FIN-mcd13.article)

Popados
03-13-2007, 11:35 AM
This is great. I was really getting tired of seeing nothing but coke products at all of the fast food restaurants around me. Hopefully Donato's and Chipotle will switch to Pepsi products too.

popologist
03-13-2007, 11:49 AM
i never thought i'd see the day.

boo.

Ram0n C0keah0lic
03-13-2007, 12:10 PM
This is kinda similar with OXXO c-stores (property of Coke bottler FEMSA), that only sell Coca-Cola sodas but they also sell PepsiCo products like Sabritas Chips, Sonric's candies, Gamesa cookies, Quaker, Gatorade, Propel, Lipton Iced Tea, 19 lt jugs of PBG's Electropura, and PBG's E-pura water in some regions...

popologist
03-13-2007, 12:36 PM
well, this should be a wake-up call to coke. i mean, honestly... aside from soda, pepsi has the better brands when it comes to non-carbonated drinks and waters.

coke has been trying to do things on the cheap... and/or trying to create their own new brands, when they should've been buying established brands like gatorade, etc.

Ram0n C0keah0lic
03-13-2007, 01:15 PM
I don't think so... in the case of Mexico, the Coca-Cola Company non-carbonated drinks are great: Powerade, Powerade Light, Ciel, Ciel Aquarius, Minute Maid, Nestea, Nestea Light and a new addition to the brand portfolio: Cappy, a fruit drink that competes directly with Boing! (available in pineapple, tamarind and mango flavors). Coca-Cola gave a big push to the non-carbonated beverages and now they're gaining a good market share...

Take a look at the 2006 Annual Review... Ciel is among the best selling products of The Coca-Cola Company! :D

popologist
03-13-2007, 01:28 PM
i'm not saying coke's products are bad. but it's a fact that gatorade sells a lot better than powerade.

mofizz
03-13-2007, 01:50 PM
Nestea, Minute Maid, and Powerade are fine but they do not have the brand recognition that Lipton, Tropicana, and Gatorade do. Popologist is completely right. Coke screwed up by trying to develop its own brands vs. going after strategic partnerships and buyouts like PepsiCo did with Lipton, Starbucks, Gatorade and Tropicana. A huge chain like McDonalds cannot turn a back to this fact.

popologist
03-13-2007, 02:12 PM
exactly, mofizz. i tend to think that there's a bit of arrogance over at coca-cola. maybe that comes from being #1.

but... being #2 has served pepsi well. they've totally been winning the non-cola war of the last decade... and that's where the growth is.

and if mcdonald's has 9 in 10 people asking for gatorade (instead of powerade)... what are they supposed to do?

Ram0n C0keah0lic
03-13-2007, 03:02 PM
Nestea, Minute Maid, and Powerade are fine but they do not have the brand recognition that Lipton, Tropicana, and Gatorade do.

You're right in the case of Gatorade... but I don't think that Lipton and Tropicana have better brand recognition than Nestea and Minute Maid, Nestea has been positioned better in the consumer's mind even before Nestlé made the partnership with Coca-Cola, and in the case of here, Minute Maid is gaining presence in the mexican market since its release in 2005 while Tropicana Orange Juice is just starting to announce that now is on sale at Wal-Mart and Sam's Club (but I haven't seen it in the frozen food aisle yet)

Mr Zabe
03-13-2007, 04:14 PM
MrR
From my perspective and limited market knowledge; Minute Maid and Nestea are not very strong brands at least in the Chicago area. Coca Cola has not IMO supported these brands in brand development and in market development. I can fully understand how McDonald's would want Pepsi's non carbonated drinks in their restaurants. With the summer season coming up, I will guess that Pepsi's non carbonated drink line will do well to McDonald's bottom line.

I have been a long time McDonald's customer. It will be so cool to get a Lipton Ice Tea or a Tropicana Juice drink.:)

mjb1124
03-13-2007, 09:13 PM
I guess this hinders the chances of Vault coming to McDonald's...

popologist
03-13-2007, 11:19 PM
i think the pepsi products will be in a cooler. sort of how subway has coke products in the fountain, and then bottles of other stuff in the cooler.

so, the value meals will still come with coke & diet coke. but if someone must have gatorade, that will be available too.

even so... this is bad news for coke.

SamC
03-14-2007, 07:30 AM
This is a huge mistake by MCD. Pepsi's utter failure at Burger King in the 1980s proved that having Pepsi in fountians costs fast-foods business. That simple.

However, this is much ado about very little. The fountain at 100% of MCD outlets remains KO. At a FEW restaurants (less than 5% of outlets) a cooler will sell PEP non-carb products in bottles out of a cooler. Now who exactly wants a Gatorade with a fast food burger?

mofizz
03-14-2007, 09:15 AM
You're right in the case of Gatorade... but I don't think that Lipton and Tropicana have better brand recognition than Nestea and Minute Maid, Nestea has been positioned better in the consumer's mind even before Nestlé made the partnership with Coca-Cola, and in the case of here, Minute Maid is gaining presence in the mexican market since its release in 2005 while Tropicana Orange Juice is just starting to announce that now is on sale at Wal-Mart and Sam's Club (but I haven't seen it in the frozen food aisle yet)


Not in the United States. I have seen the studies to prove it.

Mr Zabe
03-14-2007, 09:45 AM
This is a huge mistake by MCD. Pepsi's utter failure at Burger King in the 1980s proved that having Pepsi in fountains costs fast-foods business. That simple.

However, this is much ado about very little. The fountain at 100% of MCD outlets remains KO. At a FEW restaurants (less than 5% of outlets) a cooler will sell PEP non-carb products in bottles out of a cooler. Now who exactly wants a Gatorade with a fast food burger?

The young generation between the ages of 12 to 20 +/- aged, in general consume more sports drinks than soda pops with food or other wise. I agree with you. Fast food burgers and fries with a cold soda pop is my idea of pure bliss.

The younger generation have grown up with juice and sweet drinks. Carbonated soda pop is not as popular as it was to our generation, 25 years and up. IMO

Coco Rico
03-14-2007, 11:23 AM
MCD's has also begun testing selling Red Bull from these open air coolers at several of their locations around Kansas City. I heard it was going pretty well.

CR

Ram0n C0keah0lic
03-14-2007, 11:46 AM
Now who exactly wants a Gatorade with a fast food burger?

When I went to San Antonio in the downtown McD, I ate a Big Mac with a glass of Powerade Mountain Blast...:D

Ram0n C0keah0lic
03-14-2007, 11:48 AM
Not in the United States. I have seen the studies to prove it.

Probably those studies were made by PepsiCo...

MATHA531
03-14-2007, 12:19 PM
Scared me...as long as they don't do away with coke products for the carbonated drinks who cares!

popologist
03-14-2007, 12:31 PM
as a "coke fan"... i'm disappointed in McD's. McD's and Coke just always seemed go together. now... it's like McD's has a mistress.

on the other hand... as a business decision... it's probably smart on McD's part (since they're offering more variety).

though, i wonder why they just aren't selling coke products in their coolers. i mean, coke has energy drinks, and sports drinks, and flavored water.

i think what McD's is really up to, is that they're trying to become almost a convenient store... where kids pop in to grab a soda (and, then, hopefully, buy some fries too).

of course, if lines start to get longer because after school kids are buying gatorade... their regular customers might get ticked off, and stay away. i guess we'll see how this works out in a year or so...

fusion
03-14-2007, 01:37 PM
If anything, it should get Coke to step up to the plate and offer McD's a total beverage package.

Mr Zabe
03-14-2007, 03:27 PM
I agree.
I do have an open mind.
Either way as a beverage freak, getting a soda pop
besides Coke (which I do love) at McD's is boring.

As far as the young crowd just using McD's for getting a quick sports
drink; that's the whole point. Traffic in or by any store is always the
best situation. Gee the "add on" sales alone would be amazing.

David J.
03-14-2007, 04:48 PM
If anything, it should get Coke to step up to the plate and offer McD's a total beverage package.

That and increase the number of unique beverages on the fountain at MCD's. I find it funny we have a lot of choices when we go to the store, but fountain-side how many new products come out, fountain-side?


This is a huge mistake by MCD. Pepsi's utter failure at Burger King in the 1980s proved that having Pepsi in fountians costs fast-foods business. That simple.

I read the reason it bombed wasn't entirely the consumers choice, but rather Pepsi and BK had a deal (that meant Pepsi more or less gave the syrup away) and they lost money due to consumer choice and an confusing aggreement.

fusion
03-14-2007, 05:23 PM
David,

Chain fountain contracts don't mean a whole ton of profit for either Coke or Pepsi. It does add up to a lot of gallons, which adds to their bottom line case sales, though.

Personally, I just wonder how the restaurants are going to keep the stuff from being given away or stolen (I do realize the coolers are behind the registers). People steal energy drinks all the time, and I often find 5-packs of Coke or Pepsi bottles where someone has torn off and stolen a single bottle.

Mr Zabe
03-14-2007, 07:03 PM
Shrinkage is always the devil. I'm guessing that McD's would find a way to sell the bottles from behind the counter or a vending machine that would require tokens. I do think where is a will there is a way to control shrinkage.

fusion
03-14-2007, 08:06 PM
The coolers are behind the counter - I've seen a picture of one before from Texas.

drpep
03-14-2007, 08:55 PM
I did not read the link at the begining of this thread but one article I read mentioned some Mcd operators were getting tired of seeing customers bring in the own drinks.
I also have read stories that say only non carbonated Pepsi products would be carried but they keep mentioning Mtn Dew. I also think a picture Fusion posted showed Dew.
I do remember making a post a few agos ago about Mcds or BK selling Aquafina.

David J.
03-14-2007, 09:06 PM
I worked at a Burger King for almost three years, and they carried AquaFina, but not Dasani, and I've always wondered why.

fusion
03-14-2007, 09:08 PM
I did not read the link at the begining of this thread but one article I read mentioned some Mcd operators were getting tired of seeing customers bring in the own drinks.
I also have read stories that say only non carbonated Pepsi products would be carried but they keep mentioning Mtn Dew. I also think a picture Fusion posted showed Dew.
I do remember making a post a few agos ago about Mcds or BK selling Aquafina.

BK does. I got one from Latham NY (code LA).

here is the cooler pic I found:

http://img.coxnewsweb.com/B/07/27/52/image_5052277.jpg

the bottles are 16.9oz, not 20oz.

Ram0n C0keah0lic
03-14-2007, 11:12 PM
BK does. I got one from Latham NY (code LA).

here is the cooler pic I found:

http://img.coxnewsweb.com/B/07/27/52/image_5052277.jpg

the bottles are 16.9oz, not 20oz.


Probably they run out of Vaults and the manager said to an employee... Quick! go to a Wal-Mart and buy some 6-pack of half-liter Dews! :D

SURGE
03-15-2007, 06:44 PM
I really dont see this as a big deal esp. since they cannot be substiuted for the fountain drink. Subway uses a similar system in many areas and the bottled product is often out of date, even the popular brands. I predict this will have a minimum effect on the companies bottom lines. Still if a relationship is built between MCD and Pepsi this could threaten Coke in the future.

popologist
03-15-2007, 11:12 PM
there's actually a chance it could backfire on McDs. a lot of coke fanatics might stay away now.

Tannerman
03-16-2007, 12:15 AM
there's actually a chance it could backfire on McDs. a lot of coke fanatics might stay away now.Huh? I really don't see that happening. You aren't going to go to McD's because there are Pepsi products offered on the side?

BetterWithCoke
03-16-2007, 12:46 AM
Huh? I really don't see that happening. You aren't going to go to McD's because there are Pepsi products offered on the side?

Brand loyalty is quite strong, for many. If McDonald's ever moved away from Coca-Cola at the fountains (unlikely), then I would be sound as a pound to never grace their doors again. If I go to McDonald's, I expect to see Coca-Cola at the fountain. Heck, usually if I'm in a McDonald's, I'm there for a Coke and then on my way.

I'd hate to see that happen, but there are dozens of other places I can get my quick fountain Coke and/or snack. That includes Burger King.

Mr Zabe
03-16-2007, 01:05 AM
For sure us soda pop freaks are very brand loyal to the point of not going to a fast food restaurant solely because the drink choices. We ( myself too) are soda pop obsessed. I avoid certain resturants just because their fountain drinks taste bad or because they only serve Coke products. That's just me. LOL

IMO the average fast food customer is looking for a cheap greasy fat laden "reward" meal. Soda pop/drink choices are way off their radar. They go to the resturants that have tasty food, the best french fries or what ever foods they enjoy.

IMO....serving Coke or Pepsi is not a deal breaker for the average person.

Ram0n C0keah0lic
03-16-2007, 02:01 PM
I expect to see Coca-Cola at the fountain. Heck, usually if I'm in a McDonald's, I'm there for a Coke and then on my way.

When I go to KFC, I order a meal and I ask them to put me more salad instead of Pepsi, and after that I go to buy a 600 ml Coke...

brand loyalty... :D

Mr Zabe
03-16-2007, 02:53 PM
No kidding, I go to Burger King just because I love their frozen Cokes.BK's food IMO is not on my
fast food A List.
Colvers and Wendys have the best burgers at least by my parts.:)

Ram0n C0keah0lic
03-16-2007, 03:45 PM
The best hamburgers we had in our trip to Texas last new year's eve were the ones from Whataburger, YUM! (and I should better stop talking about burgers because I'm starting to want a burger right now and today I can't eat meat... LOL)

sucrose
03-23-2007, 05:56 PM
mcdonalds is great because of their 100% fountain vending agreement with coke, even though they have a contract that allows them to be the only place worldwide with a leaner mixture of syrup to water the coke tastes good.

I love that if I find a mcdonalds in a 100% pepsi facility (such as the Palms Casino Las Vegas or a few conference centers that lease space to a McDonalds), I know I will find coke at the McDonalds.

mjb1124
03-23-2007, 06:12 PM
I love that if I find a mcdonalds in a 100% pepsi facility (such as the Palms Casino Las Vegas or a few conference centers that lease space to a McDonalds), I know I will find coke at the McDonalds.

Not necessarily. I remember that at the Audubon Zoo in New Orleans, the McDonald's served Pepsi.

millionsofbillions
07-29-2007, 01:09 PM
Mcdonalds alone accounts for 10% of Coke's North American profit.Coke dominates fountain sales . All the major fast food companies have exclusive contracts signed with Coke.All other places like stadia,theatre chains
mostly also have coke in the fountain.My question is :Is this dominance fair?
Coke has about 70% share of this channel while pepsi has only 20%.Pepsi and Coke are pretty much neck on neck in retail sales(excluding the south).There are a equal number of consumers who prefer pepsi as there are who prefer coke. . Then why this dominance?