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View Full Version : Crush a registered trademark of DPSU



doulasc
02-09-2010, 09:34 PM
Ok there seems to be a misconception here. If Crush is a registered trademark of
DPSU then how come Pepsi distributors are distributing Dr.Pepper and Crush and not
our 7up distributor?

fusion
02-10-2010, 01:17 AM
Because Pepsi signed a contract to distribute those products in your area.

You don't have to own something to sell it. Grocery stores don't own all the brands under their roof; soda, beer, and wine distributors don't usually own the products they sell; and so forth.

Or just look at restaurants. With McDonald's, a certain portion of the stores are owned by the corporation, but others are owned by franchisees.

U.S. Franchising - About McDonald's (http://aboutmcdonalds.com/mcd/franchising/us_franchising.html)

lordmadone
02-10-2010, 11:02 AM
Well said Fusion. *nods in agreement* ..nice 4k post too..

Mr Zabe
02-10-2010, 01:09 PM
Ditto :)
Congrads on your 4,000th post.

fusion
02-10-2010, 06:36 PM
Thanks, guys.

I also wanted to add that smaller companies simply just can't self-distribute and reach the whole nation without significant investment in trucks, warehouses, etc. So, they have a few options.

1. DSD (direct store delivery) distributors. These companies will load your product onto their trucks along with the other products they deliver, and take them into chain stores, independents, etc. Just getting your product onto these trucks can be a huge win, because they will stock your items, and may even include them in their own branded coolers, which will give them great exposure. They also deliver to most accounts, from the smallest to the largest.

2. Natural/speciality foods distributors. Kehe, UNFI, Haddon House, to name a few. These companies stock specialty items, mostly in grocery stores, for all sorts of companies. You ship your product to their warehouse(s), and they add it to the pallet that is dropped off at the store(s).

3. Through the chain's warehouse or their supplier's warehouse. You ship your product to the grocery chain's warehouse, or their supplier's warehouse. It is then picked along with thousands of other items and added to their grocery loads. There are also distributors that focus on convenience store accounts/food service accounts, like McLane, Eby-Brown, and so on.

You're still going to need some sort of rep system where you have people in various parts of the country, calling on the distributor, to set up ad activity, pricing, etc, etc.

You're also going to need to get authorizations for chain accounts to carry the product (Wal-Mart, Kroger, Wawa, etc, etc), and get it placed on the planogram (layout) for that section.

This is why there are still quite a few small, independent, regional producers. It's simply just too much work, and costs too much money to push for that much expansion. So they may deliver to a small area, maybe a few counties or so. But they're often family owned operations, and very friendly. Often you can buy right from the warehouse.

GlassBottleSoda.org - Home Page (http://www.glassbottlesoda.org/) is a great resource.

fusion
02-10-2010, 06:46 PM
Back in the day, most of the brands owned by DPS were small brands, where a few people worked hard to build the business, and went around selling franchises to distribute/produce their beverages. These contracts have remained in place over time, and ones like Dr Pepper rarely change hands, even as larger beverage companies (Coke, Pepsi, DPS) swallow up brands, and the number of distributors shrinks as well, with consolidation. DPS is in a very unique situation where they completely control a large portion of their bottling and distribution network, through their bottling group arm. PepsiCo will be in that same situation once they buy out their two biggest bottlers, PBG and PAS. Currently they just own minority interests in larger bottlers. Coke is in a similar situation, except they do own one bottler, Philadelphia Coca-Cola, and minority interests in the larger public ones. Of course, overseas, they may own bottling companies, or partner with a local or regional company in a joint venture.


An aside - even Mountain Dew was once owned by a separate company, and they sold franchises, mostly to companies who bottled Pepsi, but there were sixteen awarded to non Pepsi bottlers. Today, three of those franchises still exist - RC Winchester of Winchester VA, Dr Pepper of Staunton VA, and Dr Pepper of West Jefferson, NC.

SamC
02-11-2010, 07:30 AM
Coke is in a similar situation, except they do own one bottler, Philadelphia Coca-Cola, and minority interests in the larger public ones.

When did that happen? I was under the impression that Philadelphia Coke was a private company with 30% KO ownership, with the 70% remaining in the founding families, which makes it the second largest black majority owned business in the USA. I kinda got the impression KO liked that situation, for PR/PC purposes.

The rest of the major US bottlers would be the publicly traded CCE and CCBCC, both with significant KO minority ownerships, and the private ABARTA, Swire (part of the Chinese mega corporation Swire) , CC United, and Northern New England (part of the Japanese Saporro Brewery) companies.

fusion
02-11-2010, 10:52 AM
The deal was struck a while ago, but it just officially happened last year. The company went through a restructuring back then, to make the head count smaller and the payroll leaner as well. The president (Ron Wilson) also retired, but reappeared as the CEO of Skinny Water. A few other big names in the company left as well, but ended up with other Coke bottlers (like Tom Pippett at ABARTA) or other beverage companies (Chuck Muth went to Honest Tea).

This is probably the best article I could find, but I'm sure there are still details that were left out.

Coca-Cola bottler up for sale: CEO J. Bruce Llewellyn seeks retirement. - Free Online Library (http://www.thefreelibrary.com/Coca-Cola+bottler+up+for+sale:+CEO+J.+Bruce+Llewellyn+s eeks...-a0156135652)

From what I heard, the other minority minority investors got out a while ago (Dr. J, Bill Cosby, etc).