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scum1
02-19-2009, 11:07 AM
So what is your opinion of this? Myself as a drinker I like it and wish Pepsi would drop AMP and just go with No fear and Rockstar which are both much better drinks.

Red Sox fan
02-19-2009, 11:26 AM
Ofthe Pepsi brands, Amp is much stronger market share wise than No Fear. So, much more likely Pepsi eventually phases out No Fear and goes to market with AMP and Rockstar. I beleive these two brands compliment each other nicely given slight differences in their demo. I would say Amp trends more towards blue collar (nascar) drinker, Rockstar demo slightly younger/nightlife crowd.

greg
02-19-2009, 01:21 PM
I think they are putting the final nail in the proverbial coffin.
I do not know what the contract says but I have a feeling that Rockstar needed/needs Pepsi way more than Pepsi needs Rockstar, therefore, this contract is very Pepsi friendly.
I see it as way for pepsi to kill off one more competitor by bringing it in the fold and then letting distribution numbers fall to the basement and then once the contracts up and Rockstar is a non entity in the category they let them go.
If Pepsi was serious about killing No Fear and propping up AMP by putting it next to Rockstar they would have bought Rockstar. Similarly the way they did Sobe and Gatorade(QO).

With that being said, My argument does not hold true for Coke and Muscle Milk. MM had decent distribution and they are a segment leader so I think that contract was very even and distribution numbers must be maintained or Cytosport could pull out easily.

Bill Brasky
02-19-2009, 02:52 PM
It's going to get interesting really quick, that's for sure!

Pepsi should do the smart thing and DQ No Fear & Adrenaline within the next 90 days. In that case their trucks have credibility as AMP & Rockstar brands bring a lot of value to the retailer/consumer.

On the flip side, that green Claw just became a whole lot more valuable to the Red Trucks across the street. I think you see the 2 horse race between Red Bull & Monster get a couple side brands creeping up in AMP & Rockstar now that Pepsi has something to play with.

Between Coke & Pepsi this will be a true battle seeing Monster is about equal to AMP & Rockstar combined.... they either both fight strong & smart and build the category or let RB run away with it and just kill it all together. I hope for the former.

Red Sox fan
02-19-2009, 04:04 PM
Greg, you have no idea what you are talking about and your comments could not be further from the truth. you have no idea what the terms of the agreement are and your clear bias is spewing out all over the thread.

1. Pepsi Paid Rockstar A SIGNIFICANT amount of $ for the distro rights and signed a 10 year agreement. It would not have done so to "kill Rockstar" off as you say.
2. Rockstar is keeping its legacy dists in Nor Cal and Northwest (where Rockstar's share is highest). Surely Pepsi would have demanded this territory be part of the agreement if the agreement was so "one sided" as you say.


I could go on further but will stop here. The fact of the matter is that Rockstar has now negotiated National distribution agreements with the two most powerful distributors in the world within a 4 year span. There is no other brand that I am aware of that can say the same. (Certainly not any company you have worked for Greg).

greg
02-19-2009, 06:53 PM
Greg, you have no idea what you are talking about and your comments could not be further from the truth. you have no idea what the terms of the agreement are and your clear bias is spewing out all over the thread.

1. Pepsi Paid Rockstar A SIGNIFICANT amount of $ for the distro rights and signed a 10 year agreement. It would not have done so to "kill Rockstar" off as you say.
2. Rockstar is keeping its legacy dists in Nor Cal and Northwest (where Rockstar's share is highest). Surely Pepsi would have demanded this territory be part of the agreement if the agreement was so "one sided" as you say.


I could go on further but will stop here. The fact of the matter is that Rockstar has now negotiated National distribution agreements with the two most powerful distributors in the world within a 4 year span. There is no other brand that I am aware of that can say the same. (Certainly not any company you have worked for Greg).

You know, I get the same newsletter( BTW, You should give credit where credit is do when you quote them) you get and I was going to come on here and say I was mistaken, because, if what the newsletter states is true I am wayy Off base. I can say I was WRONG. However, My company has been featured in that same newsletter and erroneous or flat out wrong information was given. They took two(2)of our products that were completely seperate and for different uses and wrote about them as one single product and got the science completely wrong also.
But I digress,
You fail to even recognize the fact that I said in my opening " I do not know what the contract says". So before you get on your High Horse and rip me a new one because you do not like my style or my opinion slow down a bit and soak in what I write..because the message was right there in front of you the whole time. Regardless of at this writing I am wrong or right is irrelevant, I have seen "my opinion" many time before happen in this industry, more so than you could imagine, I have seen it happen in other industries as well, look at Microsoft..they do it all the time. Nike does it to apparel companies, etc.

And as far as what major distributors I have sat down with in the last few years and walked away from I know would surprise you. My CEO understands the business and the way to survive. Just because we didn't sign off on a lopsided contract doesn't make us any less intelligent than Rockstar.

DrPepperYummy
02-19-2009, 07:11 PM
Wow people like to argue.. so here's my 2 cents which is now worth an eight of a cent in america....

pepsi will like every other company, create a lineup... 1st we put this in a cooler, 2nd we put this in a cooler, 3rd we put this in a cooler...

they will put what first... their own product they make the most money off of course... and so on and so forth... they have the ability to grow their own brands and have done well doing this profit wise for the company...

rockstar just plugs a nice addition to the lineup they have when they want to be able to control a percentage of the energy drink market... why wouldn't you crunch the numbers, cost versus profits and where you can get it into the market in what forms... and come up with a grand total profit and say... hey this looks like a good deal for us... lets make some money...

So I don't know why people think companies should or would discontinue other items just to bring a replacement in without owning it outright... look how many repeating flavors drpepper/snapple own... sunkist punch, nehi punch, welchs punch, crush punch, hawaiiian punch, tahitian punch (I'm forgetting some also)... when did they decided to replace them all with just one? (sure in some areas other distributors sell them against eachother but in some markets they have the ability to sell them all...

the more the merrier!

Pepsi_Man
02-19-2009, 09:37 PM
From: King, Robert
Today, PBG is once again charging ahead in our ongoing effort to build scale in dynamic growth categories. As announced to the media this morning, we have joined with PepsiCo and our Pepsi bottling partners in a master distributor agreement that will offer ROCKSTAR products exclusively through Pepsi's bottling system in all trade channels in the United States and Canada. As many of you know, ROCKSTAR is one of the world's leading energy drinks. This win for the Pepsi family significantly expands PBG's portfolio in the growing energy beverage segment, which already includes AMP. ROCKSTAR now joins an exciting list of recent additions to PBG's offerings, including Crush in the flavored carbonated soft drinks segment and Muscle Milk in the emerging value-added protein drinks category. Please join me in celebrating this impressive brand addition for our Company. The news release can be found below and at Welcome to The Pepsi Bottling Group (http://www.pbg.com).
It will be big and we have no interest in running RockStar down. Just the opposite. As PBG we can expand our shelf space and sell more then the red guys have been able to do in the past. We will sell Sobe, Amp and RockStar all the same with the same results. SALES!!

BhamCokeman
02-19-2009, 10:13 PM
I'm honestly gonna say that Rockstar will not be missed at all. Off my C and P presale route I maybe.... sold 10 total cases a week. It's a dead brand around here(and I know they still have their strong areas) and I would take Monster any day of the week over it(selling wise). I have some accounts that might go through 10 cases of green 16 oz in one week alone. By the end of the year, Monster will have a higher share here than Red Bull, and personally I cant see what Pepsi is trying to accomplish here.

Red Sox fan
02-19-2009, 10:46 PM
I'm honestly gonna say that Rockstar will not be missed at all. Off my C and P presale route I maybe.... sold 10 total cases a week. It's a dead brand around here(and I know they still have their strong areas) and I would take Monster any day of the week over it(selling wise). I have some accounts that might go through 10 cases of green 16 oz in one week alone. By the end of the year, Monster will have a higher share here than Red Bull, and personally I cant see what Pepsi is trying to accomplish here.


Yes, I don't think anyone is claiming that Alabama is ROCKSTAR country (I think thats where your from).
Greg-good to see you can admit when you are wrong. I HONESTLY did not see the article you saw but I am pretty sure I know which service you are talking about. I will check it out. I still take issue with the fact that you said "I do not know what the terms of the agreement are"..but then went on hypothosize anyway with a clear negative slant. That's fine to have an opinion, but I for one respect informed opnions a lot more.

Pepsi_Man
02-19-2009, 10:53 PM
Getting one of the top 4 best selling energy drinks and you ask what we are doing? Yes Monster sells a alot, but do the math. Amp, Sobe and now RockStar. We now have twice as many flavors as Monster including the new No Fear Green Tea, Black Tea, and Amp Lemonade. I'm sure your happy with Monster but your selling your self short being happy about losing cases. :confused:

BhamCokeman
02-19-2009, 11:34 PM
I hate losing cases anytime, but in the long run I will still sell 10 times the energy I did last year, and thats even after we lose Rockstar. In alot of accounts, space for Moster and Nos were needed anyway, and with a two months heads up hopefully Rockstar can move out by then and will be forced into Pepsi cold vault space. I know I wont order it anymore unless forced to.

Pepsi_Man
02-20-2009, 02:32 AM
I hate losing cases anytime, but in the long run I will still sell 10 times the energy I did last year, and thats even after we lose Rockstar. In alot of accounts, space for Moster and Nos were needed anyway, and with a two months heads up hopefully Rockstar can move out by then and will be forced into Pepsi cold vault space. I know I wont order it anymore unless forced to.

There lies your problem. Any good Rep myself included have already planned to maintain the space that RockStar has as of now. I'm talking about cold vault. No rep is going to leave foriegn product in there cooler but vault space is a daily fight as we all know. For me my job is half done cause any spcae Rockstar currently has remains the same. More space more cases. Win Win for Pepsi. :p

greg
02-20-2009, 01:08 PM
Yes, I don't think anyone is claiming that Alabama is ROCKSTAR country (I think thats where your from).
Greg-good to see you can admit when you are wrong. I HONESTLY did not see the article you saw but I am pretty sure I know which service you are talking about. I will check it out. I still take issue with the fact that you said "I do not know what the terms of the agreement are"..but then went on hypothosize anyway with a clear negative slant. That's fine to have an opinion, but I for one respect informed opnions a lot more.

Thanks for the backhanded compliment, however, I think I am informed. I have sat in meetings with decision makers at Coke, Pepsi, DPSG(formerly DP7UP) and AB throughout my beverage Industry career..I think I know how the Industry works thank you and driving company brands sales always trumps driving sales of licensed brands! ALWAYS!
You need to stop being so altruistic and start thinking in terms of reality.

So what if my opinion has a negative slant...Its an opinion. Sorry it isn't cohesive with yours. That is what I see happening from my experience. What is BOOKOO doing in CCE's system now? Why was it even brought in to the fold? Coke didn't need it.

Red Sox fan
02-20-2009, 01:59 PM
Thanks for the backhanded compliment, however, I think I am informed. I have sat in meetings with decision makers at Coke, Pepsi, DPSG(formerly DP7UP) and AB throughout my beverage Industry career..I think I know how the Industry works thank you and driving company brands sales always trumps driving sales of licensed brands! ALWAYS!
You need to stop being so altruistic and start thinking in terms of reality.

So what if my opinion has a negative slant...Its an opinion. Sorry it isn't cohesive with yours. That is what I see happening from my experience. What is BOOKOO doing in CCE's system now? Why was it even brought in to the fold? Coke didn't need it.

First off BOOKOO was never in CCE's system. Incorrect facts again. However, the answer to your question about Bookoo is simple. SOME coke bottlers (Consolidated etc.) brought it into their systems as a way to replace or hedge against ROCKSTAR..IT FAILED COMPLETELY. Thats one of the main reasons Rockstar left the coke system finally. Both the parent company (KO) and the bottlers continued to launch new sku's that were terrible and at the end of the day only took up valauable space/focus from ROCKSTAR (which they should have been focusing on all along).

If you notice the new deal with PEPSI is directly with PEPSICO (pepsi parent company as you know). While there is no equity involved, there SIGNIFICANT interest in the deal to give them incentive to make sure the deal works and ROCKSTAR is a priority within their system. Both companies recognize the pitfalls of the situation you explain above, having been through it in the past (Rockstar with Coke, Pepsi with brands like Sobe etc).

greg
02-20-2009, 03:12 PM
First off BOOKOO was never in CCE's system. Incorrect facts again. However, the answer to your question about Bookoo is simple. SOME coke bottlers (Consolidated etc.) brought it into their systems as a way to replace or hedge against ROCKSTAR..IT FAILED COMPLETELY. Thats one of the main reasons Rockstar left the coke system finally. Both the parent company (KO) and the bottlers continued to launch new sku's that were terrible and at the end of the day only took up valauable space/focus from ROCKSTAR (which they should have been focusing on all along).

If you notice the new deal with PEPSI is directly with PEPSICO (pepsi parent company as you know). While there is no equity involved, there SIGNIFICANT interest in the deal to give them incentive to make sure the deal works and ROCKSTAR is a priority within their system. Both companies recognize the pitfalls of the situation you explain above, having been through it in the past (Rockstar with Coke, Pepsi with brands like Sobe etc).

In my haste, I wrote off the top of my head. Coke Consiolidate and Coke United is where BooKoo landed. But the fact remains the same, What is BooKoo doing for them now? Semantics not withsatnding, the spirit of the argument remains the same.

So what does SIGNIFICANT interest really mean? You obvioulsy have been around this business for a while, surely you can see my argument/opinion? Suppose the "interest" is a $10mm per annum licensing fee(on top of case cost)....is that really significant for Pepsi to let a brand die in its distribution system? In the long run will it not benefit PEPSI to write off $100mm from 10 years Licensing fees over a much longer period, or better yet, make it one lump sum to apply to EBITDA saving them more in the short term and gaining a position or two in the overall category?

See, that is why they are entering into a Licensing agreement instead of buying them outright. Buying them takes up too much cash up front as well as makes them liable for the brand for years and years.

And BTW, That is ONE Fact I had wrong when I mentioned CCE, not "another" or "again" as you pointed out. The other things I said are opionions. I never stated them as facts.

fusion
02-20-2009, 07:10 PM
This deal had to happen, there was no way that Rockstar could continue to play second fiddle in the KO bottling system or with the small independent distributors.

Pepsi would be smart to get rid of the entire No Fear line and concentrate on Amp and Rockstar.

I wish Rockstar all the best, I always felt it was a good brand to carry. Anyone know when this deal takes effect? I assume that the CCE/Rockstar deal will be terminated very soon, correct?

SumPoosieCat
02-21-2009, 05:18 AM
Greg I am with you on this one. The Rockstar Brand is not what it was and the shot does not sell. Going with Pepsi seems like a bright spot but I think you are right... it is on the shelf and thats about it. Don't look for Pepsi to go crazy with this brand. Coke made a very good move.

Ron Swedelson
02-21-2009, 01:00 PM
I am incredibly excited over the move. Back when Coke signed their Monster agrement, it was made very clear that Rockstar can leave at any time if they felt they were on the back burner. The second I saw that, I thought it was a perfect set up for Pepsi to jump into the system and grab one of the top energy drinks. We got it. Does this change the landscape of the business? No. I have not noticed much change for Monster here in Northern California, except for more POS durring trade tours. But, they have used Monster to leverage more space for their Full Throttle and Nos lines. Rockstar is huge to us. Obviously, a profitable case sale in a slower economic time. A tool for us to gain more space in the cold valt. A HUGE moral booster for all my sales reps., and extra padding in their pay checks. More cooler in the field, more sponsorships. I love it. Great for Pepsi, Great for Rockstar. Hopefuly in many areas it will help were there are 3 or 4 different houses that carry the brand. (Here 7-up, Southern Wine and Spirits, and a couple Grocery Distributors).

Red Sox fan
02-21-2009, 03:02 PM
In my haste, I wrote off the top of my head. Coke Consiolidate and Coke United is where BooKoo landed. But the fact remains the same, What is BooKoo doing for them now? Semantics not withsatnding, the spirit of the argument remains the same.

So what does SIGNIFICANT interest really mean? You obvioulsy have been around this business for a while, surely you can see my argument/opinion? Suppose the "interest" is a $10mm per annum licensing fee(on top of case cost)....is that really significant for Pepsi to let a brand die in its distribution system? In the long run will it not benefit PEPSI to write off $100mm from 10 years Licensing fees over a much longer period, or better yet, make it one lump sum to apply to EBITDA saving them more in the short term and gaining a position or two in the overall category?

See, that is why they are entering into a Licensing agreement instead of buying them outright. Buying them takes up too much cash up front as well as makes them liable for the brand for years and years.

And BTW, That is ONE Fact I had wrong when I mentioned CCE, not "another" or "again" as you pointed out. The other things I said are opionions. I never stated them as facts.

Ok greg/SP, so according to this logic Monster will also fail in the Coke system, right (also licensed brand)? And further why is that that both Monster and Rockstar outshare Full Throttle/amp by triple/double respectively although neither one has EVER owned their own distribution system. Also please reconcile the success of every other succesful independant brand (Vit Water etc) who relied on third party dists..If I were extrapalate your opinion out the only brand that has a shot is Red Bull (own their own distro).

look, I understand your point. There is clearly a history of brands that enter the coke/pepsi systems and get lost, quick. What I am sayng is Rockstar understands those risks (maybe better than anyone else out there) and has done its best to mitigate them. Time will tell..

BhamCokeman
02-21-2009, 04:20 PM
<<There lies your problem. Any good Rep myself included have already planned to maintain the space that RockStar has as of now. I'm talking about cold vault. No rep is going to leave foriegn product in there cooler but vault space is a daily fight as we all know. For me my job is half done cause any spcae Rockstar currently has remains the same. More space more cases. Win Win for Pepsi. >>

Not sure how it's done around your parts my friend, but Monster is on a seperate contract, therefore in 95% of the accounts space was maintained when it when from Pepsi to us. It was a lose for Pepsi. Rockstar on the other hand is not(around here at least) is incorporated into our energy set. Being a good rep like myself I've already made plans, and it started Friday by stopping the ordering of the junk, and it will be empty by the time they begin to distrubute it,to make more room for other skus. If not it will come out of the set. It was real easy to maintain Monster space because of sales, but most store owners could care less if Rockstar was in their store or not. It was buried in our 09 sets anyway because we knew this was coming.

fusion
02-21-2009, 05:00 PM
Pepsi bottlers are going to have a lot of work on their hands, I can tell you that.

Red Sox fan
02-21-2009, 05:16 PM
This is letter that was sent to all customers earlier this year from CCE. As you will see, CCE is legally obligated to maintain Rockstar space in all accounts through end of 2009, EVEN IF THERE IS A DISTRIBUTOR CHANGE. You don't think Rockstar was prepared for this??

DATE: November 7, 2008

TO: Chain Customers of ROCKSTAR/Coca-Cola Enterprises

FROM: Mark Thomson, CCE NABU VP Sparkling & Energy Category Joseph Cannata, ROCKSTAR, Inc. EVP of Sales & Distribution
RE: Extension of Rockstar/CCE Distribution Agreement

As you may be aware, on October 3, 2008, Coca-Cola Enterprises and ROCKSTAR, Inc. announced an extension to their distribution agreement through December 31, 2009. This agreement affects CCE’s distribution territories for Rockstar in the United States and Canada. The parties are examining opportunities for CCE to continue distributing Rockstar in certain portions of their territories after 2009. However, under the current agreement, Rockstar has the right to terminate all or a portion of its distribution agreement with CCE before December 31, 2009.

This letter is to inform you that CCE will honor your allocation of space to Rockstar products, and thus, CCE has agreed that it will not place any other products in such existing ROCKSTAR space, position and ROCKSTAR owned equipment, through December 31, 2009, regardless of whether Rockstar changes distributors. In addition, CCE will not place any other products in such existing ROCKSTAR space in CCE owned equipment where CCE continues to distribute ROCKSTAR products in that portion of the territory.


---I will also add to BMAN, what you are doing in your accounts is a violation of your contract and could result in the loss of your company's termination buyout.

Red Sox fan
02-21-2009, 05:22 PM
The letter above was sent to all Chain customers but the same obligations have been contractually agreed to IN ALL accounts (both independant and chain).

Pepsi_Man
02-21-2009, 05:51 PM
I am incredibly excited over the move. Back when Coke signed their Monster agrement, it was made very clear that Rockstar can leave at any time if they felt they were on the back burner. The second I saw that, I thought it was a perfect set up for Pepsi to jump into the system and grab one of the top energy drinks. We got it. Does this change the landscape of the business? No. I have not noticed much change for Monster here in Northern California, except for more POS durring trade tours. But, they have used Monster to leverage more space for their Full Throttle and Nos lines. Rockstar is huge to us. Obviously, a profitable case sale in a slower economic time. A tool for us to gain more space in the cold valt. A HUGE moral booster for all my sales reps., and extra padding in their pay checks. More cooler in the field, more sponsorships. I love it. Great for Pepsi, Great for Rockstar. Hopefuly in many areas it will help were there are 3 or 4 different houses that carry the brand. (Here 7-up, Southern Wine and Spirits, and a couple Grocery Distributors).

Couldn't agree more.

BhamCokeman
02-21-2009, 11:55 PM
This is letter that was sent to all customers earlier this year from CCE. As you will see, CCE is legally obligated to maintain Rockstar space in all accounts through end of 2009, EVEN IF THERE IS A DISTRIBUTOR CHANGE. You don't think Rockstar was prepared for this??

DATE: November 7, 2008

TO: Chain Customers of ROCKSTAR/Coca-Cola Enterprises

FROM: Mark Thomson, CCE NABU VP Sparkling & Energy Category Joseph Cannata, ROCKSTAR, Inc. EVP of Sales & Distribution
RE: Extension of Rockstar/CCE Distribution Agreement

As you may be aware, on October 3, 2008, Coca-Cola Enterprises and ROCKSTAR, Inc. announced an extension to their distribution agreement through December 31, 2009. This agreement affects CCE’s distribution territories for Rockstar in the United States and Canada. The parties are examining opportunities for CCE to continue distributing Rockstar in certain portions of their territories after 2009. However, under the current agreement, Rockstar has the right to terminate all or a portion of its distribution agreement with CCE before December 31, 2009.

This letter is to inform you that CCE will honor your allocation of space to Rockstar products, and thus, CCE has agreed that it will not place any other products in such existing ROCKSTAR space, position and ROCKSTAR owned equipment, through December 31, 2009, regardless of whether Rockstar changes distributors. In addition, CCE will not place any other products in such existing ROCKSTAR space in CCE owned equipment where CCE continues to distribute ROCKSTAR products in that portion of the territory.


---I will also add to BMAN, what you are doing in your accounts is a violation of your contract and could result in the loss of your company's termination buyout.

First off sir, we are not CCE. We were done this way by Buffalo Rock when Monster came out, and turn about is fair play as we say around here. Customers around here finally put their foot down when they were pretty much coming in, crating Monster up, and trying to take Monster our of the stores. Out of the around 90 stores I service, 1 let them do this. There was a seperate contract for one, and the name Monster alone helped us keep space. Rockstar just doesnt do that. Trust me my man it was a 3 month battle between Buffalor Rock and Monster on cooler, space, etc.. and I'm not sure if it's still resolved. Now we are putting out Monster contracts, seperate mind you from our contract. Nowhere in our contract does it allocate energy space to Rockstar, therefore that is our space, and we do what we want to do with it. It will be up to Pepsi on where to work it in now, but I know where it will not go.

BhamCokeman
02-21-2009, 11:56 PM
Also I havent saw a Rockstar rep in the 5 or so years we've had it now. Since November a Monster rep you see usually once every 2 weeks at least. They even come in and ride when sales reps at times.

fusion
02-22-2009, 02:22 AM
Not to mention that some of those trade letters aren't worth the paper they're printed on. If a Coke rep has a strong relationship with an account, they're going to leverage that to maintain their existing space, no matter what Coke-distributed brand they're putting there. Let Pepsi put the Rockstar in their space, or in a Pepsi-owned machine. Somehow I doubt we'll see Rockstar reps riding around to every account enforcing this letter.

Like bham said, all's fair...

In our area, we really didn't have too much problem with Monster. Philadelphia Coke carries it in the bulk of Canada Dry Honickman's NJ/DE territory, so it was more of a secondary brand to them outside that territory. We just went in and maintained existing space, and started putting it in coolers and stores that hadn't seen a case of Monster probably in years. Same thing happened when we picked up Evian from them.

Honickman in Baltimore, that's a different story. Reps were dumping stacks 2 hand-carts at a time in some accounts, to get their commission - higher ups probably ok'd some sort of incentives, and would get a higher payout than the buyback from Monster.

Sometimes I'm glad I work in bulk...lol.

Pepsi_Man
02-22-2009, 07:39 PM
<<There lies your problem. Any good Rep myself included have already planned to maintain the space that RockStar has as of now. I'm talking about cold vault. No rep is going to leave foriegn product in there cooler but vault space is a daily fight as we all know. For me my job is half done cause any spcae Rockstar currently has remains the same. More space more cases. Win Win for Pepsi. >>

Not sure how it's done around your parts my friend, but Monster is on a seperate contract, therefore in 95% of the accounts space was maintained when it when from Pepsi to us. It was a lose for Pepsi. Rockstar on the other hand is not(around here at least) is incorporated into our energy set. Being a good rep like myself I've already made plans, and it started Friday by stopping the ordering of the junk, and it will be empty by the time they begin to distrubute it,to make more room for other skus. If not it will come out of the set. It was real easy to maintain Monster space because of sales, but most store owners could care less if Rockstar was in their store or not. It was buried in our 09 sets anyway because we knew this was coming.


Can you clarify this comment.....(Not sure how it's done around your parts my friend, but Monster is on a seperate contract, therefore in 95% of the accounts space was maintained when it when from Pepsi to us. It was a lose for Pepsi.) This comment does not make sense. I would like to respond but unclear as to what you are trying to say.:confused:

Pepsi_Man
02-22-2009, 08:00 PM
All areas are different. You can't really compare say Buffalo to like my area Los Angeles. Different schematics, Franchisees, owners. In my accounts which is about 170 stores include independent, convenient and gas, carnicerias, Big lots, 99 cent only stores, all discount stores and many more RockStar sells well. Just cause Monster is distributed by Coke doesn't mean that RockStar space goes directly to them for more monster. Monster sell well but no store have said they really need more then 2 shelves of monster. Corporate stores don't even give more then two shelves for monster. Really in small format it all comes down to the relationship with the owners and managers. It's a battle day in and day out. A fight to maintain space and a fight to gain space. Any Rep who let's a competitor take space from them needs to be let go. Period. As far as Contracts thats another story. Contracts don't fly in independent store like your corner liquor store. I mean do you really think someone will come to Inglewood where there is hookers in front gangbangers outside and a clerk behind 3 inch plexi glass is going to care about a paper that says one company gets this space in their store. Think again. :D Happy Hunting.

BhamCokeman
02-22-2009, 10:31 PM
All areas are different. You can't really compare say Buffalo to like my area Los Angeles. Different schematics, Franchisees, owners. In my accounts which is about 170 stores include independent, convenient and gas, carnicerias, Big lots, 99 cent only stores, all discount stores and many more RockStar sells well. Just cause Monster is distributed by Coke doesn't mean that RockStar space goes directly to them for more monster. Monster sell well but no store have said they really need more then 2 shelves of monster. Corporate stores don't even give more then two shelves for monster. Really in small format it all comes down to the relationship with the owners and managers. It's a battle day in and day out. A fight to maintain space and a fight to gain space. Any Rep who let's a competitor take space from them needs to be let go. Period. As far as Contracts thats another story. Contracts don't fly in independent store like your corner liquor store. I mean do you really think someone will come to Inglewood where there is hookers in front gangbangers outside and a clerk behind 3 inch plexi glass is going to care about a paper that says one company gets this space in their store. Think again. :D Happy Hunting.


As to answer your question before... Monster is a seperate contract, from our contract we have. The Monster rep might even handle it in some accounts(and does handle it for chains). It has it's own allocated space from ours, and you pretty much get cheaper pricing.(case cost almost goes down 5 dollars a case). The Rockstar space might not even go to Monster. It might be a store where you've never had room for 22 oz NOS etc.

As for your area of town comment... sometimes these our the store owners who might care more. There are some good stores in parts of town like this, and I dont know about yall, but we try to treat everyone the same.

Like you said, it's a battle everyday, and it gets worse when something like this happens, but I know in the long run, noone is getting my space in my accounts because of relationships, and pretty much out working the competition.

Pepsi_Man
02-22-2009, 11:58 PM
We don't have specific monster or RockStar reps in LA. I mean rep exclusive to Rockstar or monster

Red Sox fan
02-23-2009, 10:11 AM
<<There lies your problem. Any good Rep myself included have already planned to maintain the space that RockStar has as of now. I'm talking about cold vault. No rep is going to leave foriegn product in there cooler but vault space is a daily fight as we all know. For me my job is half done cause any spcae Rockstar currently has remains the same. More space more cases. Win Win for Pepsi. >>

Not sure how it's done around your parts my friend, but Monster is on a seperate contract, therefore in 95% of the accounts space was maintained when it when from Pepsi to us. It was a lose for Pepsi. Rockstar on the other hand is not(around here at least) is incorporated into our energy set. Being a good rep like myself I've already made plans, and it started Friday by stopping the ordering of the junk, and it will be empty by the time they begin to distrubute it,to make more room for other skus. If not it will come out of the set. It was real easy to maintain Monster space because of sales, but most store owners could care less if Rockstar was in their store or not. It was buried in our 09 sets anyway because we knew this was coming.


So let me get this straight Bham...When Rockstar has an agreement or contract it's "not worth the paper it's wrote on" but when Monster has one they are 100% enforceable? hmmm

Also, it is true that that letter I pasted impacted CCE only. However, all the bottlers have Contracts as well that govern this exact scenario (termination that is). The language is clear regarding the obligations to maintain space and sales throughout any transition period and violation COULD result in the loss of buyout. With litterrally MILLIONS of dollars at stake in potential buyout dollars (and sales), I will let you know Rockstar did go to the expense of hiring a 3rd party audit firm to audit accounts nationally BEFORE, and now after the announcement. And while I have no clue if an audit was conducted on your route, I would not want to be the rep who has to answer to his company's CEO as to why he cost the company thousands/millions of dollars in a buyout.

BhamCokeman
02-23-2009, 10:48 PM
So let me get this straight Bham...When Rockstar has an agreement or contract it's "not worth the paper it's wrote on" but when Monster has one they are 100% enforceable? hmmm

Also, it is true that that letter I pasted impacted CCE only. However, all the bottlers have Contracts as well that govern this exact scenario (termination that is). The language is clear regarding the obligations to maintain space and sales throughout any transition period and violation COULD result in the loss of buyout. With litterrally MILLIONS of dollars at stake in potential buyout dollars (and sales), I will let you know Rockstar did go to the expense of hiring a 3rd party audit firm to audit accounts nationally BEFORE, and now after the announcement. And while I have no clue if an audit was conducted on your route, I would not want to be the rep who has to answer to his company's CEO as to why he cost the company thousands/millions of dollars in a buyout.


What part of the WE DO NOT HAVE A SEPERATE contract for ROCKSTAR DO YOU NOT UNDERSTAND??? I mean how hard is it. The only stores I know that do have one, would be your national chains such as Flying J, and Pilot. Other than that, nobody does. Our C and P contract disignates space for COKE energy, and when Rockstar leaves the system, it's not COKE energy. Monster is sold in on a seperate contract, not a COKE contract.

sessex55
02-24-2009, 08:02 AM
Getting one of the top 4 best selling energy drinks and you ask what we are doing? Yes Monster sells a alot, but do the math. Amp, Sobe and now RockStar. We now have twice as many flavors as Monster including the new No Fear Green Tea, Black Tea, and Amp Lemonade. I'm sure your happy with Monster but your selling your self short being happy about losing cases. :confused:
There's Monster, Full Throttle, Nos, Relentless, Lost, we shall see. The 1st three can successfully outsell anything blue has on the market.

greg
02-24-2009, 11:33 AM
Ok greg/SP, so according to this logic Monster will also fail in the Coke system, right (also licensed brand)? And further why is that that both Monster and Rockstar outshare Full Throttle/amp by triple/double respectively although neither one has EVER owned their own distribution system. Also please reconcile the success of every other succesful independant brand (Vit Water etc) who relied on third party dists..If I were extrapalate your opinion out the only brand that has a shot is Red Bull (own their own distro).

look, I understand your point. There is clearly a history of brands that enter the coke/pepsi systems and get lost, quick. What I am sayng is Rockstar understands those risks (maybe better than anyone else out there) and has done its best to mitigate them. Time will tell..

You're not comparing apples to apples. Rockstar had some success out in the market place before Coke started distributing them. Monster did as well. Rockstars numbers went up due to the shear number of new distribution points it gained from being in the Coke system then leveled off. Monsters numbers mirrored those of Rockstars but continued to climb even though they were being distributed by a beer marketer instead of a CSD marketer.
Full throttle sells for the very same reason Rockstars numbers went up, the number of distribution outlets it has in the Coke system, but it still wasn't getting Coke closer to the proverbial top of the mountain. Coke couldn't do it with FT or RS in their system so they went out and signed a major player to get them closer to the pinnacle of the ED category. That is my opinion , not a fact, however, I think it hold water just the same!

Red Sox fan
02-24-2009, 01:00 PM
What part of the WE DO NOT HAVE A SEPERATE contract for ROCKSTAR DO YOU NOT UNDERSTAND??? I mean how hard is it. The only stores I know that do have one, would be your national chains such as Flying J, and Pilot. Other than that, nobody does. Our C and P contract disignates space for COKE energy, and when Rockstar leaves the system, it's not COKE energy. Monster is sold in on a seperate contract, not a COKE contract.

I am not talking about customer contracts!!! I am talking your company's contract with ROCKSTAR. And yes, you do have one of these. Included in it there is EXPLICIT language detailing sales protocol for distributors of Rockstar. If a bottler wipes the product out of the market (or loads in) and fails to maintain normal volume/space patterns, that distributor runs the risk of losing their buyout. Now, what is it that you don't understand?

NRGSLLR55
02-24-2009, 01:47 PM
Just out of curiosity, doesn't RockStar hold the number one spot in C/P IRI in the Northwest where Coke doesn't distribute it? Seems like to me maybe the brand does have some value outside of the Coke System.

Time will tell, although in the Pepsi Heartland, I would think Rockstar has a strong chance of gaining ground. The people who should reall worry are the "also rans". Look at the history of BOO KOO, XYIENCE and KRONIK.

All made a big play but fizzled against Red and Blue.

fusion
03-03-2009, 10:54 PM
I think all the Coke people on this board are in areas where we have both Monster and Rockstar. But what about the areas where A-B has Monster? Coke is really going to be hurting in the ED category when they lose Rockstar. Time will tell if Hansen buys out the A-B contract...

Pepsi_Man
03-04-2009, 12:26 AM
Coke doesn't sell Monster in LA. Monster as stated before brought in Reps that run one day ahead of Budweiser, then the monster gets shipped with the beer order. They also have a better case cost then Coke locked in for the year. In a nut shell in LA Coke lost RockStar and gained nothing. 100% win for Pepsi in this market unit. Amp sales have rose since the launch of Lemonade, Green Tea and Black Tea. I go through a case to 2 cases a week now on Lemonade alone which is a huge win. We will be as big as Monster time will tell and I am optimistic. Amp, No Fear and Rockstar in our arsenal is a wonderful thing. :p

lordmadone
03-19-2009, 06:11 PM
Red Sox Fan is very well informed..all shelf space(including cold space) has been catalogued and sent back to HQ..hah I got a pretty sneaky coke rep on two of my Farm Freshes..I semi-forewarned him but he didn't believe me.

fusion
12-07-2009, 09:19 PM
Interesting situation here in Delaware. Apparently Canada Dry's contract with Rockstar is pretty airtight, so they still have it (Philadelphia Coke has had Monster for years). And when the CCE contract runs out at the end of this month, they'll pick up the two counties in northeastern Maryland as well, since the indie Pepsi distributor there declined to carry it. At this point we're pretty much out of everything anyway - I think all that is left is some 16oz citrus Punched and some 24oz Zero Carb. Canada Dry has already started shipping it into my stores, but I guess since we don't even have the product, it would be pretty pointless to argue.

I was in Baltimore a few days ago, and it's PBG down there, though. I was surprised to see they had regular Punched in 4 packs, never seen that before. They had loose reg/diet in most of their coolers, but I don't think they carry the slower selling flavors at all.