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pepsiguy383
06-14-2009, 11:24 PM
So what's in it for us PAS and PBG guys if this buyout were to happen??? I know the whole deal on how we want more money and it's back to the drawing board for pepsico. I was just wondering what's gonna happen with us front line guys. New products?? Bigger Budgets?? Better Pay?? Anything at all???

mofizz
06-15-2009, 03:52 PM
I would imagine not much changing for frontline employees and I would not bank on better pay. The corp savings would most likely come from the consolidation of common resources like accounting, IT, payroll, insurance, consolidated manufacturing, etc...I'm sure many high level sales jobs will be lost because now you will only need one team/person calling on Walgreens or Target instead of two (one from PAS and one from PBG). I'm sure it will be the same with other departments as well.

Just my two cents.

lordmadone
06-15-2009, 04:18 PM
Mofizz is pretty much on the money..us frontline guys wouldn't see anything immediate but I believe down the line we would see more cooperative sales plans between pepsico companies as a result of such consilidation and our stocks and other assorted monetary investments would as a result benefit but not much I think as a whole.

pepsiguy383
06-23-2009, 11:33 PM
So do you guys think with all this savings and cosolodation, we could be seeing cheaper prices on pop?? It's getting ridiculous as far as the prices go... higher prices = less sales = less money for us commissioned drivers and sales reps...

greg
06-24-2009, 03:11 PM
So do you guys think with all this savings and cosolodation, we could be seeing cheaper prices on pop?? It's getting ridiculous as far as the prices go... higher prices = less sales = less money for us commissioned drivers and sales reps...

Thats good One!!!! LOL..ha ha ha ......
The only reason Pepsico wanted PBG in the first place was to add to their shareholders value. Thats were the money goes.
Cheaper pricing? I dont think so. Pepsico,if the transition ever makes it, will have to service that debt. Layoffs and production cuts will ensue.
Everyone thought that AB was such a strong brand and worth so much money that InBev would not touch anything and takes a hands off approach and just cash checks.......well not everyone, and then after a few months when everything quieted down what happened? Layoffs and plant closings.

mofizz
06-24-2009, 04:38 PM
I think the penny per ounce on soda will continue to rise as Pepsi and Coke continue to adjust pack sizes and configurations. Think about the beer industry. They have done a great job blurring the lines as to what a "value" is regarding a case of beer at retail while the soda consumer is still thinking that anything over $6 or $7/case is a rip. Even if raw materials drop, and soda prices hold, they will take that margin to the bank for the shareholders just like greg says. This whole PBG/PAS takeover is nothing more than a vary large PepsiCo ROI calculation. I just hope that PepsiCo can think like a bottler rather than a concentrate company after the dust settles on this.

pepsiguy383
06-24-2009, 11:55 PM
Now that we brough up the cost portion, I have a question that I have always wondered... how much does it REALLY cost to make 1 case of 20 oz. bottles or a case of cans??? From production all the way to shipping it to the warehouses???

NRGSLLR55
07-06-2009, 09:43 AM
Now that we brough up the cost portion, I have a question that I have always wondered... how much does it REALLY cost to make 1 case of 20 oz. bottles or a case of cans??? From production all the way to shipping it to the warehouses???
Likely between $6.00 and $7.00 per case depending upon transportation costs of raw materials and freight to the selling DC. As far as other costs, you have to account for G&A and Selling Expense to get to the true cost per case.

NRGSLLR55
07-06-2009, 09:44 AM
Likely between $6.00 and $7.00 per case depending upon transportation costs of raw materials and freight to the selling DC. As far as other costs, you have to account for G&A and Selling Expense to get to the true cost per case.
The answer above refers to 20oz bottles.

pepsiguy383
08-04-2009, 10:13 PM
Well ladies and gentlemen, the buyout has occurred... gonna be an interesting next few months I tell ya

fusion
08-06-2009, 03:05 AM
I wonder how this bodes for areas where PBG and PAS sell non-Pepsi brands. Obviously, Pepsi would want their bottling arm to sell and promote their own products, firstly, but you have to look at the strength of allied brands like Crush, Sunkist and Dr Pepper. Pepsi never could crack any attempt to compete with the Dr, and their last viable fruit flavor line was Slice.

Will these brands (and others I obviously don't know of) stay in the COBO (I guess we can call it that again, right?) system, or be dropped? Will Pepsi execs realize the true value of distributing these strong brands? Would Pepsi make a move to try and buy Crush from DPS?

As you may or may not know, Coca-Cola now owns Philadelphia Coca-Cola. I don't know how much this has changed their front office and day-to-day operations, but I can tell you that they still sell Dr Pepper. Overall, I believe it is around 8-10% of their total volume.

CitrusCola
08-06-2009, 06:41 AM
If DPSG were to sell Crush to Pepsi, I'd imagine that regaining distribution rights to Dr Pepper (in areas where Pepsi distributes it) would be a part of the deal.

I could see something like this happening. DPSG already has a strong flavor line with Sunkist and Nehi.

pepsiguy383
08-06-2009, 07:37 AM
very interesting point... I'm pretty sure that mtn dew livewire couldn't even compete with the amount of sunkist that we sell day to day... up here in the boonies, we don't carry dr. pepper and you can definitely see the difference in the numbers... the plant to the south of us does and it does great for them, now if we could only get the rights to distribute it up north, i think that would be huge.

What about Rockstar??? I wonder if we would keep that or will they be looking for a new home again in the near future???

fusion
08-06-2009, 01:57 PM
Rockstar stays. That was a deal that PepsiCo signed with Rockstar.

mofizz
08-07-2009, 03:33 PM
Pepsico needs to think like a bottler, not a concentrate company, now more than ever. Remember, they are publicly traded just like PAS and PBG were so they owe it to the shareholders to sell what sells (where they can) to meet Wall Street expectaions. It would make good sense for them to buy Crush, but I don't think it would make a lick of sense for DPS. Why sell that cash cow? Same for Pepper.

The real question is how DPS goes to bat with this whole thing. I don't know the legal agreements between the now larger PepsiCo and DPS but I bet a cold soda it will get interesting.

pepsiguy383
08-07-2009, 09:37 PM
Rockstar stays. That was a deal that PepsiCo signed with Rockstar.


I guess I didn't know that... what I understood was that it was only PAS and PBG that gained to rights to distribute it... I didn't think that Pepsico had anything to do with that... then again, I'm just a little route guy, the head honchos at the plant won't tell us a damn thing

fusion
08-07-2009, 10:42 PM
No, the other Pepsi bottlers could pick it up, if they chose... unless there was a previous contract in place.

Where I live, Coke has had Monster for years, and Canada Dry has had Rockstar. Over in Maryland where I work, Canada Dry had both. We got Rockstar from them when Coke signed the big contract going back a few years, and then we got Monster from them when Coke signed that deal. Now they just have Venom in Maryland, but I believe over here, they still have Rockstar. And over in Maryland, we compete against an indie Pepsi distributor, who chose not to pick up Rockstar, so we kept it, but dropped the slower flavors and packages. Trouble is, in most of the grocery chains, the authorizations automatically switched over to Pepsi, and it got deleted out from under our vendor number in the stores. So, those stores don't carry it anymore. Walmart even said they won't change it back.

Rumor on the street from some people is that Canada Dry will pick it up in our area eventually.

lordmadone
08-07-2009, 10:50 PM
Hearing figures of about 6,000 jobs being cut..as low as 4000. Should be interesting to see what the forthcoming years bring..I hope to see more co-op between pepsico brands in the near future. So with all that financial mumbo jumbo which of you pepsi guys(or PBG or PAS should I say) are taking the cash as opposed to the stock? heh not sure how I am gonna go about that just yet.. now I wonder if KO will consider the same thing for its bottlers CCE and CCBCC? Those are the top two coke bottlers if I am not mistaken?

pepsiguy383
08-14-2009, 09:44 PM
Is there anyone that works for Pepsico out there that wouldn't mind sharing some info about their route drivers??? Benefits?? Pay?? anything else?? If you don't want to post it on here, send me a private message... I work for PAS currently and want to see if there will be any changes coming our way if any??? Thank You

Jessamine
08-17-2009, 10:26 AM
We lost everyone that joined us in the last round of hiring. Merchs and delivery drivers, but I can't understand the logic. The new merch was hired to hold down overtime hours for the others. So by laying him off, the other merchs are going to have to work more OT to cover that position, bringing payroll up. Not to mention the route changes that will have to be made to cover the driver. Does this make since to anyone else?

pepsiguy383
08-17-2009, 05:34 PM
Which Pepsi branch do you work for and where are you located?? That seems odd that they would do something like that

greg
08-17-2009, 06:24 PM
We lost everyone that joined us in the last round of hiring. Merchs and delivery drivers, but I can't understand the logic. The new merch was hired to hold down overtime hours for the others. So by laying him off, the other merchs are going to have to work more OT to cover that position, bringing payroll up. Not to mention the route changes that will have to be made to cover the driver. Does this make since to anyone else?

Its the ancillary cost of labor that they will save on. Insurance, 401k match(if there is one) Uniforms, general administration cost of employee, added payroll tax, etc.
It all adds up to either huge costs or huge savings.
Furthermore, in general, seasoned employees are usually more reliable, better trained, call in sick less often, just all around better employees. Turn over cost a company a lot of money. With a round of layoffs, even though it was new hires, it sends a message to all that they could be next. Productivity will go up in an effort for those remaining having the will to protect their jobs.
Here something else you may see come your way, unless you are union and have work weeks already established you may see the new company expand their work week to include up to 46 hours as being "regular time".

pepsiguy383
08-17-2009, 07:57 PM
Well a 46 hour work week wouldn't hurt me or the other drivers with rural routes... it actually might help out with this fluctuating overtime that we get paid once we go over our 40... most weeks it's painful to see what we were getting per hour for every hour we worked beyond 40 hours

mofizz
08-21-2009, 05:23 PM
Dr Pepper Snapple in ‘Catbird Seat’ for PepsiCo Talks (Update1) - Bloomberg.com (http://www.bloomberg.com/apps/news?pid=20601103&sid=aRimBOKWyLko)

The above link is an interesting article regarding DPSG's position in the PAS/PBG takeover. Nothing definitive but none the less interesting.

fusion
08-21-2009, 06:42 PM
I agree. It puts DPS in a very, very good position. Sell Crush to Pepsi, take back any Dr Pepper or Sunkist franchises and reassign them to their bottling group. The only danger would be in an area with a weak 3rd/4th tier bottler/distributor who simply couldn't handle Dr Pepper - like when RC Bland (Paragould AR) gave up their Dr Pepper franchises. Then I think you would want to put it in the Coke system, who I am sure would pay good money for them. I think it would give the 3rds and 4ths a lot more leverage with ads, displays, shelf space, coolers, vendors, etc. And give the ones who don't do a lot of full service to get into it (Honickman seems to have little to no vending machines, anywhere, for example).

Looks like CCE and PBG/PAS have about the same amount of Pepper volume. Anyone know if any of the PBG/PAS is in major markets/high per cap areas? Atlanta would be one, but I think KO would frown heavily on CCE trying to get those rights. I don't know how big Dr Pepper is in Pittsburgh, Florida, or a big chunk of central CA, but those franchises could also fetch some nice money.

From my experience, Dr Pepper is generally a neglected brand with PBG (don't know about PAS), while it is almost pure gold for some of the indies and smaller distributors out there.

the saint
08-22-2009, 12:54 AM
PBG has DP out of the Tulsa, Ok facility. I do not know for sure if it is a high per cap area but I do know that great plains coke in okc is one of the largest volume DP distributors in the nation. There have been several towns in OK over the years that have been deemed the highest per cap ratio in the nation and Tulsa is only about 100 miles away so it should be safe to assume that they would be a relatively high per cap area. other than that I don't know of any PBG areas who distr DP off the top of my head.

fusion
08-22-2009, 07:11 AM
Once you get past Philadelphia Coke, ABARTA Coke (Bethlehem and Coatesville) and CCE-Reading, PBG has Dr Pepper in the rest of the state of PA until you get to the old Cameron Coke territory in southwestern PA (I can't remember who picked up Crystal Soda Water of Scranton's Dr Pepper territory). They also have it in all their territory in MD (and PBV and an indie have it in eastern MD). RC Winchester in two counties in the middle is the exception. Then you get to WV, where DPS BG picks up.

PBG also has it in all of VA, except in RC Winchester and Dr Pepper Staunton territories (the two who still have Dew, besides West Jefferson). PBG Dr Pepper in VA, especially in southeastern PA from Newport News, just doesn't taste right to me.

Coke also has the rights to it in all of NJ and most of NY, except in WNY, where a cadre of indie bottlers (most of who are now part of PBG, I think) have it.

lordmadone
08-23-2009, 07:52 PM
We do a lot of DR.Pepper related promotions as far as pbg is concerned..we have full distribution in our area(south hampton roads) and we sell the brand quite well actually. I could say without dr.pepper in our arsenal we wouldn't get AS good sales as we do now but we could recover if we dropped it but not immediately. As a matter of fact we just got two internal memos from dr.pepper about upcoming displays for a certain grocery chain..pallet drops. Gotta love it.