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View Full Version : Walmart cuts back on Sam's soda pop.



Mr Zabe
02-28-2008, 01:01 AM
I read this in today's WSJ.
Sam's Club soda pop is produced by Cott Beverages.
Cott's stock dropped over a $1 or so when Walmart
announced that Sam's Soda pop would be cut back
on average 4 feet and replaced with RC and Diet Right Cola.

The Wal-Mart Effect: Cott Beverages Lose Shelf Space at Wal-Mart (http://walmartwatch.com/blog/archives/the_wal_mart_effect_cott_beverages_lose_shelf_spac e_at_wal_mart/)

Wally1912
02-28-2008, 04:26 PM
I would love to see RC make a comeback on shelves in my area. That will be a reason for me to visit Wal-Mart.

amyers
02-28-2008, 06:18 PM
It's saying Cadbury may get more spaces but space is normally based on sales. Here Coke has alot of space at Wal-Mart, in Huntsville, AL there is 8ft of nothing but Sun Drop - so I don't see how they justify that it will go to Cadbury products.

CitrusCola
02-28-2008, 06:38 PM
Some other reports that I read stated that the decision-makers at Wal-Mart decided that Royal Crown Cola and Diet Rite varieties would sell better than their Sam's Choice brand (which they buy from Cott).

I hope that the C-S lines get more shelf space at the Wal-Mart stores in my area. Right now, they have only about one-fifth as much as the Pepsi and Coke products.

drpep
02-28-2008, 08:47 PM
Wal-mart and RC are from the rural southern mountains. The mountains are full of hillbillies and Wal-mart attracts hillbillies.

rollntider
02-28-2008, 10:24 PM
Coke Dr. Pepper and Mt.Dew were created in the south. Those hillbillies really know how to make soda.

the saint
02-29-2008, 08:43 AM
Wal-mart and RC are from the rural southern mountains. The mountains are full of hillbillies and Wal-mart attracts hillbillies.

So who shops at walmart in all the stores that aren't in the "rural southern mountains"?


On a side note, Doesn't Cott own rc outside of the US? So in a sense they are only replacing one soda they own with another.

amyers
02-29-2008, 09:10 AM
So who shops at walmart in all the stores that aren't in the "rural southern mountains"?


On a side note, Doesn't Cott own rc outside of the US? So in a sense they are only replacing one soda they own with another.

They only own it outside of the US, so if the products get replaced with RC products that wouldn't make it own of their products, as Cadbury owns it.

drpep
02-29-2008, 07:31 PM
So who shops at walmart in all the stores that aren't in the "rural southern mountains"?


Come to upstate New York and visit a Wal-mart on Friday night or Saturday as hillbillies come down from the hills and up from Pennsylvania.

drpep
02-29-2008, 07:36 PM
Lets give this scenario a shot. Cadbury and Wal-mart enter into an agreement to make RC and Diet Rite exclusive to Wal-mart, sort of Wally's private label. Need flavors? Add Nehi. Root Beer? Hires. Wal-mart gets a private label soda and Cadbury Schweppes gets increased sales for RC and Diet Rite and other brands.

the saint
03-01-2008, 12:05 AM
They only own it outside of the US, so if the products get replaced with RC products that wouldn't make it own of their products, as Cadbury owns it.

There are almost as many walmart stores outside the Us as there are in the US. As a matter of fact there are more international stores than there are supercenters.

the saint
03-01-2008, 12:15 AM
Come to upstate New York and visit a Wal-mart on Friday night or Saturday as hillbillies come down from the hills and up from Pennsylvania.
Why would I want to come to upstate new york? All that is there is a bunch of yankees who use a knife and fork to eat fried chicken and drink HOT tea. :D

Lets give this scenario a shot. Cadbury and Wal-mart enter into an agreement to make RC and Dite Rite exclusive to Wal-mart, sort of Wally's private label. Need flavors? Add Nehi. Root Beer? Hires. Wal-mart gets a private label soda and Cadbury Schweppes gets increased sales for RC and Dite Rite and other brands.

That would be great except for the little fact that in order to be exclusive to walmart rc and diet rite would have to be pulled out of every single account they are in currently in the world, every grocery store, c-store etc. every vending machine across the globe would have to be taken out of service...(you should be getting the picture by now)... CS stands to lose more by doing this than by gaining exclusivity at walmart, besides rc and diet rite aren't distibuted wholly by CS, there are quite a few Indie houses that distribute still. What is CS gonna tell them, "oh yeah by the way we put you out of business everywhere on rc and diet rite except you have this 4 feet of space at walmart, and If we decide to bring in flavors to walmart....well you are just gonna have to quit selling those everywhere except walmart as well"

greg
03-01-2008, 12:33 AM
Lets give this scenario a shot. Cadbury and Wal-mart enter into an agreement to make RC and Dite Rite exclusive to Wal-mart, sort of Wally's private label. Need flavors? Add Nehi. Root Beer? Hires. Wal-mart gets a private label soda and Cadbury Schweppes gets increased sales for RC and Dite Rite and other brands.


I begrudgingly laughed out of the side of mouth about your hillbilly statements about Walmart making decisions based on southern taste buds. As assinine as your statement was I let it pass until you reiterated, or rather proved your ignorance of national distribution, by making the same comment but in a different context.
You further showed your ignorance by suggesting that Walmart makes decisions about the abilities of RC Cola and Diet Rite Colas and their position in the marketplace by suggesting that they ( RC Cola) have no other option than to enter into a contract where they would only sell their products in WalMart. How rediculous is that?
RC colas sells well in the south( enter your hillbilly joke here) however, it does have a following throughout the US and it needs to be sold in more outlets than WalMart. RC Cola through its at one time great innovation capacity created the Diet Soda category.
Moreover, if Walmart already has a "private label" brand, known as Sams Choice, why would it enter into a brand name contract and hope that the general public recognizes it as a
private label substitute. Exactly how would that marketing effort take place?

CitrusCola
03-01-2008, 01:21 PM
I'll bet the folks at Wal-Mart are wanting to make room for putting Cherry RC Cola and Royal Crown Draft Cola on the shelves!

drpep
03-01-2008, 01:38 PM
Why would I want to come to upstate new york? All that is there is a bunch of yankees who use a knife and fork to eat fried chicken and drink HOT tea. :D


I wish I could find a place here that sold fried chicken, besides KFC. Now the chicken wing, thats different and we don't use a knife and fork to eat those.

drpep
03-01-2008, 01:57 PM
Greg the only thing I can offer you is this: From where I sit there are 3 Super Centers within a half hour drive. If those three stores carried RC/Diet Rite in place of Sams one four foot section in one store would probably equal the total facings that RC and Diet Rite have in the market area. Face it, outside the core southern market and a small corner of northern VA, RC is dead. If C-S ever entered into an exclusive agreement with Bentonville RC would be in every state in front of more shoppers than it likely is now.
It was just an off the wall suggestion as to why Wally might cut back on it's own soda and increase space for an almost non existant soda (outside the south). It would be a great way to introduce a product to us sodbusters who know of nothing but Pepsi.

fusion
03-01-2008, 04:51 PM
Then again, it may be a power play to get Cott to lower their prices. I have noticed the prices on Sam's Choice sodas going up recently.

the saint
03-02-2008, 08:32 AM
why I have never heard of walmart doing what you call a "power play" to try and get someone to lower their prices. Does this really happen? :D :D :D :D

Mr Zabe
03-02-2008, 08:49 AM
LMAO
Just laughed my morning water out of my nose. LOL
OMG, I remember a documentary I saw a while back at
how Walmart treats their vendors at the corporate level.
Speak about hard nose taktics. Walmart makes
the Soup Nazi look tame. LOL

Android
03-02-2008, 03:35 PM
I'll bet the folks at Wal-Mart are wanting to make room for putting Cherry RC Cola and Royal Crown Draft Cola on the shelves!

Actually, the Walmart in Cheyenne, WY already sells Cherry RC.

I was just in one of the Walmarts in Casper, WY, today, no changes yet. That location had dropped RC when they brought Jones in, which annoyed me at the time. It would be nice to see it come back.

Oh, and it'd be nice if they brought Draft back, it was good.
-Andy

CitrusCola
03-03-2008, 06:19 AM
I heard an interesting observation from an employee at a local Wal-Mart. He said that over the past few months, Wal-Mart has had temporary price reductions of the "Coke-based products," the "Pepsi-based products," and the "Cheerwine-based (C-S drinks are distributed locally by Carolina Beverage) products." Each time this happened, the name-brand drinks were reduced to a price that was quite lower than their normal cost, but was still significantly higher than the cost of the "Sam's" drinks. With each one of these sales, the name-brand drinks would quickly sell out while the "Sam's" drinks would sit on the shelves. The same thing happened no matter which name-brand drinks were put on sale.

That tells me that customers are willing to pay a bit more for name-brand drinks.

lordmadone
03-03-2008, 10:40 AM
As they are of higher quality and offer far more variety in numerous different packaging.(12oz bottles and cans and 24 oz bottles..and half liter six packs..etc etc)

DrPepperYummy
03-03-2008, 02:14 PM
Face it, outside the core southern market and a small corner of northern VA, RC is dead. If C-S ever entered into an exclusive agreement with Bentonville RC would be in every state in front of more shoppers than it likely is now.
It was just an off the wall suggestion as to why Wally might cut back on it's own soda and increase space for an almost non existant soda (outside the south). It would be a great way to introduce a product to us sodbusters who know of nothing but Pepsi.

RC is all over Wisconsin, certain areas even carry cherry-rc... (this is for both walmarts and other grocery stores) I guess we're from the south now... (pulls his britches up) git'r dun! LOL

I'm sure the guy who gets yelled at every year to maximize rc/rite sales, was pitching anything he could to everyone he could, and holy crap someone bit, and they bit big! The walmarts in my area have watched their sams choice sales dive down the last year compared to vendor products... so perhaps this is a nationwide trend and walmart saw a chance to make better use of the space and get paid a healthy sum? I'm sure some program spending money or maybe they are getting extra margin per case... who knows what the deal is... the rc/rite guy is skipping into the office singing these day!

oooh side note for what I see typical in discount stores around here (supercenters similar but cadbury usually 8 feet), pepsi 16 feet (1/2 empty daily), coke 12 feet (1/2 empty daily), cadbury 4 feet (1/2 empty daily), sams 16 feet (1/5 empty daily)... really I don't think losing 4 feet of warehouse is going to hurt sams sales off the shelf, just give them a better selection for the customers and more sales overall from people who would buy rc/rite among other cadbury products elsewhere. (really I would give cadbury 4 feet for their main flavors before an additional 4 feet for rc/rite myself to maximize shelf space selection and overall sales)

amyers
03-03-2008, 08:11 PM
Send me some Cherry RC!!! :P

hodgesbo
03-04-2008, 11:53 AM
I know Sam personally and I think you should support his cause. Drpep is known for incriminating and misleading users without concent.

golee1
03-04-2008, 01:05 PM
say what now?

lordmadone
03-05-2008, 04:09 PM
Their response...

Cott (http://www.cott.com/investors/news/newsRelease/?reqid=1112241)

AABCjoe
03-08-2008, 08:16 AM
Lets give this scenario a shot. Cadbury and Wal-mart enter into an agreement to make RC and Diet Rite exclusive to Wal-mart, sort of Wally's private label. Need flavors? Add Nehi. Root Beer? Hires. Wal-mart gets a private label soda and Cadbury Schweppes gets increased sales for RC and Diet Rite and other brands.

Go to brandspeoplelove.com and see just how many brands Cadbury-Schweppes has in thier portfolio. RC does quite well in certain areas, Diet Rite does very well...I don't see CSBG pigeon-holeing themselves by making them exclusive to WM. Though...it would free up a LOT of space for additional facings/flavors at all the other supermarkets...

I'm happy to see that WM is going to give CSBG more space. It's a disaster at stops around here (Wisconsin). We have to service the WM stores twice a day because we sell out. They give us only enough room for two cases of product on the shelf.

atrac
08-10-2009, 06:34 AM
Ah-ha! So is this why I am having so much trouble finding private label sodas at Wal-Mart now?

I've gone to several Wal-Mart's in the Los Angeles area and they have been sold out of most of their private label stuff (except for the diet crap).

I was *guessing* that they were not stocking it because they were planning on changing the labels (to follow suit with their other Great Value products...which now have predominantly white labels).

Most likely, I'm guessing it's the topic of this thread + most people out here are broke or are afraid they are going to be so they are buying the cheap stuff now.

The good news for me is, they have had plenty of their Ginger Ale and Apple flavored sodas. No one is buying those and I gave them a try and they are both really quite good. ;)

Dumas Walker
08-28-2009, 04:38 PM
I thought that the "Sam's Choice" flavors were former Grapette flavors, and not Cott flavors? I.e. Sam's Choice Cola is the same formula as Grapette's former Mr. Cola, etc.

Or are "Sam's Club" brands different from "Sam's Choice"?

fusion
08-28-2009, 05:41 PM
There are no "Sam's Club" brands. Sam's Club is a membership warehouse. Sam's Choice is one of their private label names, but it's being phased out in some areas of the grocery section in favor of Great Value, which looks really generic in its' new plain white packaging.

AFAIK, the only Sam's Choice flavors that were former (and still are) Grapette flavors are Grapette and Orangette. The other flavors pre-date Wal-Mart's purchase of those two brands, and were probably developed by either Cott or Wal-Mart.

Wal-Mart also resurrected the White Cloud name, but discontinued it after poor sales.