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View Full Version : Coke parting ways with Rockstar?



Coco Rico
05-02-2007, 01:04 PM
Has anyone heard anything about this?

CR

greg
05-02-2007, 01:31 PM
Has anyone heard anything about this?

CR

I learned of it when the Report about BooKoo filling their spot was released toady on BevNet.
IMO isn't Coke just trading apples for apples? on 2nd thought it seems Rockstar is better than BooKoo. Coke didn't do anything with it. I guess Coke just bought them to let them die and they will do the same with BooKoo so they can slowly get rid of competition in the 16 & 24 oz segment.
g

PopNutz
05-02-2007, 01:56 PM
I guess Coke just bought them to let them die and they will do the same with BooKoo so they can slowly get rid of competition in the 16 & 24 oz segment.
g
I could be wrong here but didn't Coke only have an agreement to distribute Rock Star? They didn't buy it did they?

After all is said and done where does this leave Rock Star? How will they overcome losing this much distribution?

amyers
05-02-2007, 02:18 PM
This must of take affect, the reason that I say this is because two days ago on April 30th, 2007. I walked into a Money Back store and found BooKoo Citrus and Berry in the Coca-Cola coolers, I thought a local distro. has brought them in, but when I got up to pay for them the lady say "It's crazy, it's like the Coke guy brings in a new drink every week" and I said "Coke brought this?" and she was like "Yeah! Boooooo. Kooooooo. We'z got in in the Citrus and the Berry Blend."

The one store that I checked had it and before Monday, the BooKoo Bite was the only BooKoo product that I could find in the Columbus, GA (CCC) area. Let me know.

BTW, I don't think Coke bought rockstar because it's not listed on the cans at all and I don't think they're doing the same thing here because BooKoo wasn't bought out.

greg
05-02-2007, 02:38 PM
I could be wrong here but didn't Coke only have an agreement to distribute Rock Star? They didn't buy it did they?

After all is said and done where does this leave Rock Star? How will they overcome losing this much distribution?

Either way, bought or distribute, if Coke puts you in their system and takes it away from all other distributors and then they do no marketing or anything else with it then it will surely die. For Rockstar to regain its position in the marketplace to the same place it was before will be an uphill battle for sure.
g

DrPepperYummy
05-02-2007, 07:20 PM
This is a great example of why I almost cried when I saw coke was in talks to buy glaceau.... cause I feared it would get put on the backburner and eventually disappear...

Rockstar was distributed as far as I understand by small local companies who were able to get a strong foothold in the areas they had it... rockstar then wanted more national distribution so they hopped on the back of some C-S bottlers but refused to drop the original companies in the areas they had been distributing it, hands off to rockstar for sticking up for who grew them... THENNNNN... rockstar got greedy and jumpe don coke's back cause they were promised all sorts of billions of dollars of opportunity and increased availability we'll make you #1 something C-S can't or won't do... and now I read about CCC dropping rockstar? it appears as those the past coke experiences of buy it and backburner it are becoming true for another major drink...

so all I have to say is... eat that rockstar! You dumped the companies who made you what you were, you supported them when you went to C-S so that was cool but then you gave up the world with huge promises to make you the best ever... and now you're losing it all! (okay I may be a little bitter since we lost rockstar which was doing fantastic for us and better than any ED we ever carried, yeah I'm bitter but now I feel better they are getting boned)

I wonder if our company would entertain distributing it again... or DARE I create a new rumor, miller beers are you watching this after your buddy bought monster? Who knows maybe rockstar has plans already and coke is just saying goodbye before they were implemented?

(small edited addition) who can blame companies for dropping a 3rd party ED anyhow, they buy it for like $24 a case sell it for $32 a case and they can grow and make their own brands for fractions of that, so why not use your national distribution power to grow a single company owned brand and make $30 a case versus $8 a case...

fusion
05-02-2007, 08:13 PM
Coca-Cola Consolidated dropped Rockstar, not the Coca-Cola company. They're still the master distributor.

I can't speak for Consolidated's sales numbers, but CCE does very well with Rockstar. We carry all the flavors in 16oz, and reg/sf/juiced in 4 packs.

BooKoo was delisted at Royal Farms (Baltimore area c-store/gas chain) to make room for more Rockstar and Full Throttle.

If I had to guess, I'm sure Consolidated's thinking is that they can put BooKoo in Coke equipment and make as much, if not more money (lower case costs to them, I'm sure) than they did selling Rockstar.

Also, you neglect to mention that Rockstar did indeed keep some of those existing distributors - in the northwest, Coke bottlers don't carry it. And in the greater Philadelphia area, the Coke bottler chose to distribute Monster, so Honickman Canada Dry has Rockstar.

fusion
05-02-2007, 08:16 PM
Oh, and FTR (though this has been posted before), Consolidated's territory is as follows:

http://www.cokeconsolidated.com/images/CCBCC1.jpg

Major cities include Nashville TN, Mobile AL, Charlotte NC.

greg
05-03-2007, 10:36 AM
THENNNNN... rockstar got greedy and jumpe don coke's back cause they were promised all sorts of billions of dollars of opportunity and increased availability we'll make you #1 something C-S can't or won't do... ..


I have to take issue with that statement. Who in their right mind would not listen to the WORLDS # 1 soft drink maker when they say they want to distribute your brand?
Did Rockstar get all blurry eyed...sure, did Rockstar drink the proverbial kool-Aid, Yep, did Rockstar see the volume growth and profit potential as a solid plan of growth and a great ROI for all its inveestors, of course. So Why do you say they got greedy?
Should a volume based business participant be satisfied with marginal goals and continued slow growth when an opportunity presents itself to grow at a rate similar to dot coms in the 90's, NO it shouldn't.
I understand you feel jilted but that is the nature of this business: the little guys build it and the big guys take it to the next level. That doesn't make it right, that makes it business.

amyers
05-03-2007, 12:05 PM
I saw the Coke guy this morning stocking BooKoo in all of their flavors.

Coco Rico
05-03-2007, 09:15 PM
This potential move for Rockstar is interesting because prior to their switch to Coca Cola, Rockstar was the clear #2 energy drink in the US. Now as we all know Monster has overtaken them, however Monster is going the same route by ditching most of the distributors that built them up in favor of the Budweiser network. It is my opinion that Monster is over-estimating the impact that Budweiser will have on their business (when was the last time AB put out a successfull NA brand???)

Regardless of the "muscle" a larger distributor network can provide, I don't think it will ever match the intensity and passion shown by the smaller distributorships that helped develop these brands to begin with.

CR

amyers
05-03-2007, 11:28 PM
This potential move for Rockstar is interesting because prior to their switch to Coca Cola, Rockstar was the clear #2 energy drink in the US. Now as we all know Monster has overtaken them, however Monster is going the same route by ditching most of the distributors that built them up in favor of the Budweiser network. It is my opinion that Monster is over-estimating the impact that Budweiser will have on their business (when was the last time AB put out a successfull NA brand???)

Regardless of the "muscle" a larger distributor network can provide, I don't think it will ever match the intensity and passion shown by the smaller distributorships that helped develop these brands to begin with.

CR

Is 180 not successful? Not as successful as others, but it's everywhere.

fusion
05-03-2007, 11:50 PM
I didn't even know 180 still existed. I haven't seen it in years.

amyers
05-04-2007, 10:23 AM
I didn't even know 180 still existed. I haven't seen it in years.

Oh yeah, we just got it here sometime last August. We have pretty much every flavor as well, 180 Orange, 180 Acai Blue, 180 Acai Blue, 180 X3, and a few others. They run about .99 cents.

zne0
05-04-2007, 01:42 PM
So Far in North Cal since the switch over to AB network Monster hasnt seen much growth, AB whole sellers are great Beer Distrubutors but when it comes to NA its a totally diferent story. I think only time will tell if Monster will be successful in N. Cal with AB, AB does not own Monsters just like CCE does not own Rockstar these are just distribution agrements. rockstar did not make a mistake by going to Coke but i think coke has been controlling Rockstars growth at one point Rockstar was neck to neck with Red Bull in So. Cal for the #1 place, but since the switch over rockstar has moved to a distant #3 behind Red Bull and the distributor network Rockstar pulled away from has made Monster #1 in So. Cal.

egg beater
05-05-2007, 02:26 PM
Couple points here...

1. Fusion thanks for pointing out that Rockstar is parting ways with just one independant coke distributor, not CCE or CCNA. All the doom and gloom people on the thread really should check their facts before they go on here spouting the demise of Rockstar.

2. Consolidated is in denial if they think they can replace Rockstar volume with Bookoo. My guess is bookoo walked into consolidated, dropped their pants, and offered Consolidated some rediculous case cost to secure the distribution. Consolidated will find out very quickly the meaning of the old saying.."something for nothing is worth nothing". The bookoo brand will rought away on the shelves.

3. While there will be some distruptions in distribution for Rockstar in the short term in Consolidated's area, long term they will be fine. If you don't think every other distributor in that area isn't rushing to pick up Rockstar you're crazy..including the independant Pepsi dists. there.

4. I have seen many comments from people on this board claiming that Rockstar has "made a deal with the devil" or that "coke only picked up Rockstar to kill it and build their own brands." The fact of the matter is that Rockstar continues to grow it's market share in every measurable channel, while FT (the parent company's brand) has been losing share. Coke is doing a great job for Rockstar and anyone that says otherwise either A. has an axe to grind B. doesn't know the facts.

greg
05-05-2007, 05:27 PM
EggBeater,
Sounds like you may have some inside info.
In Referring to my comment, notice I said " I GUESS Coke bought them [or picked up distribution] to let them die. I didn't say this was the goal. You can not sit there and tell me it hasn't been done with Coke, Pepsi, or Froito Lay before. I have seem all of them buy a brand and then do their obligatory 120-180 days with them and then let them die.

egg beater
05-05-2007, 07:22 PM
Greg,

two things...

As you may know Coke did not buy Rockstar. Strictly a distribution deal at this point. All personnell, new items, marketing decisions, CMA presentations, buyer calls, etc. are still intact and are being handled by Rockstar. The same exact way as they were before the distribution agreement.

That's not to say Rockstar does not leverage Cokes distribution power where applicable. Coke's reach into vending, colleges and universities, major retail accounts like cirquit city/subway/home depot, airlines, ski resorts and major national customers like CVS etc. has given Rockstar more new points of distribution than some of their competitors could ever dream about!

This is the main point of difference between the rockstar deal and and other buyouts in the past. When pepsi bought out sobe for example, all that infrastructure and brand essence that made Sobe a great brand disappeared overnight as it was swallowed into the pepsi system.

Not so in Rockstar's deal with Coke. The same people, ideas, and energy that made rockstar a great brand before the coke deal, still drive the brand within the coke system today. I think anyone on the coke or rockstar side would tell you the realtionship has been a win-win almost 3 years into the deal.


Also, check out the delahoya fight tonight and you will see some Rockstar marketing $$ at work...

DudeMan
05-05-2007, 11:37 PM
EggBeater, why would you say that BooKoo will rot on the shelves? I personally think their cans are more attractive than RS and their flavors are also much better.

amyers
05-06-2007, 12:05 AM
EggBeater, why would you say that BooKoo will rot on the shelves? I personally think their cans are more attractive than RS and their flavors are also much better.

I would have to agree with you DudeMan, ever since Coke started dropping BooKoo around here this week I've been buying it like a mad man. I also found the BooKoo Water at Eckards, I'll be buying some of that tomorrow.

and for now CCC is still dropping Rockstar around town and when I asked our sales manager about dropping the Rockstar brand he said that he hadn't heard that.

*sips on his BooKoo Bite Energy Drink*

egg beater
05-06-2007, 11:32 AM
Dude Man,
Taste is subjective, the fact that you like Bookoo's taste/packaging better than Rockstar's is a personal choice.

My opninion was based on the the overall brand performance as evidenced by national nielsen and volume #'s.

Using this factual data there is no comparison between the 2 brands. Bookoo will rot on the shelves..except at the stores you and Amy are buying from.

amyers
05-06-2007, 05:11 PM
Dude Man,
Taste is subjective, the fact that you like Bookoo's taste/packaging better than Rockstar's is a personal choice.

My opninion was based on the the overall brand performance as evidenced by national nielsen and volume #'s.

Using this factual data there is no comparison between the 2 brands. Bookoo will rot on the shelves..except at the stores you and Amy are buying from.


I doubt that, but we'll see. BooKoo seems to be flying off the shelfs here. I've never known ONE person to (1) like rockstar (2) or even buy rockstar. BooKoo on the other hand it's the same way, but I'm not calling the shots.

egg beater
05-06-2007, 06:18 PM
Not going to argue with you over which brand is better. Every factual piece of data (Nielsens/IRI etc) speaks for themselves and the answer is clear.

The "my buddies and I all drink Bookoo and the store down the street flies through it" argument just doens't hold the same weight. Sorry.

I wish consolidated all the best with Bookoo. They are still a great distributor and did an excellent job with Rockstar. At the same time they are being foolish if they think they can replace an original brand with REAL market share and major national customers (like the pantry/CVS/Rite Aid/Sunoco/Hess) with another me too product (Bookoo).

BhamCokeman
05-06-2007, 10:41 PM
We here in Birmingham at Coca Cola United carry both Rockstar and Boo Koo. We started carrying Rockstar right after Full Throttle and it is still going strong. The Guava flavor is doing really well. Boo Koo is my opinion, as well as most of the other saleman, is a dog. The sales of it are going down every month and I could possibly seeing us droping it. Here we have carried NOS for almost 3 years and its the one with the most potential. It is right up there in sales with Full Throttle and I could really see it taking off when all Coke bottlers start carrying it with the pickup of Fuze.