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Thread: the end is near

  1. #1
    Join Date
    Oct 2006
    Location
    milford pa
    Posts
    161

    Post

    I work for pepsi and we had a general sales meeting last week that said because the cost of aluminum is going up we will be changing over to 12pk 12 oz plastic bottles. You may have already seen these at wal-mart. This changeover will start sometime at the end of this year. We already have pepsi, diet pepsi, dew, mist, lipton tea, aquafina and twister orange. But we also still have them in cans. We are doing an introduction to the regular supermarkets as a test. Hope everyone likes this idea. the retail is $4.39.

  2. #2
    Join Date
    Oct 2006
    Location
    Saint Paul, MN
    Posts
    184

    Post

    I like cans, but if I can get 12 pk 12 oz bottles for a similar price, I can deal. If $3 or less sale prices are not to be found, I'll be drinking a whole lot less pop.

  3. #3
    Join Date
    Jul 2002
    Location
    Delaware
    Posts
    4,790

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    Pepsi introduced the 12pk PET into stores here at the beginning of the year, at a $3.99 retail.

    Twister Orange - that's a surprise. I didn't think that brand was strong enough for such a short-coded package.

  4. #4
    Join Date
    Nov 2005
    Location
    Janesville, WI
    Posts
    770

    Post

    we have had pepsi, Diet pepsi, dew, and diet dew in theese packages for a while, but will this be like a total phase-out of cans?

  5. #5
    Join Date
    Jan 2007
    Location
    Louisiana
    Posts
    215

    Post

    I HOPE NOT.. i personally think sodas taste better in cans.

  6. #6
    Join Date
    Apr 2003
    Location
    Aluminum Land
    Posts
    115

    Post

    This is very bad news thinks the KanKing. What will this country do wothout the aluminum can?
    THUS SAITH THE KANKING: If it's not in an Aluminum can, It should go in the garbage can!

  7. #7
    Join Date
    Oct 2006
    Location
    milford pa
    Posts
    161

    Post

    They will keep certain flavors in cans and bottles like the core brands of pepsi, diet pepsi,dew and mist. They will still run sales but at best will be 4 for $11.00. Twister orange was a suprise for me to when i saw it but when its on sale it does sell very well, i can't say the same for grape and strwberry.

  8. #8
    Join Date
    Nov 2006
    Location
    Missouri
    Posts
    189

    Post

    You've got to be kidding. While PET bottles are growing and cans are on the decline, cans are not going anywhere and they will not just be produced in the core flavors. Here are a few reasons:

    1) Vending. Can machines are still vital to a soft drink company's vending sales.

    2)Out of date. Cans keep way longer than bottles. Try to keep Mug Cream in date with PET.

    3)Volume. Bottles are still more expensive to make than cans. Pepsi is not about to pull the plug on something relatively cheap to make despite increase in COGS. While cans are are relatively low margin compared to PET, they make up a chunk of a bottlers volume.

    4) Pricing. Cans vs. Bottles. $2.99 for 12 vs. $4.39 for 12.

    Every bottler would love to make the can dissapear and do what jerr2429's company is doing, but I just don't think it makes sense. We too are looking into phasing in more varieties in 12oz 12pk PET, but we are not going to replace our cans with them.
    banned

  9. #9
    Join Date
    Jul 2004
    Location
    Jupiter, Florida, United States
    Posts
    1,575

    Post

    Originally posted by mofizz:
    You've got to be kidding. While PET bottles are growing and cans are on the decline, cans are not going anywhere and they will not just be produced in the core flavors. Here are a few reasons:

    1) Vending. Can machines are still vital to a soft drink company's vending sales.

    2)Out of date. Cans keep way longer than bottles. Try to keep Mug Cream in date with PET.

    3)Volume. Bottles are still more expensive to make than cans. Pepsi is not about to pull the plug on something relatively cheap to make despite increase in COGS. While cans are are relatively low margin compared to PET, they make up a chunk of a bottlers volume.

    4) Pricing. Cans vs. Bottles. $2.99 for 12 vs. $4.39 for 12.

    Every bottler would love to make the can dissapear and do what jerr2429's company is doing, but I just don't think it makes sense. We too are looking into phasing in more varieties in 12oz 12pk PET, but we are not going to replace our cans with them.
    1.VENDING- Vital to the extent of having a place to go with damged cases and close dated product. 20oz Vending is Huge!

    2. Out of Date- Volume will be adjusted for "just in time inventory" type methods. No Longer will the warehouse be loaded down with product. It will probably result in a shift of Bottling responsibilities to the bottler. i.e. One plant responsible for producing Mug CS for 4-5 other bottlers to keep cost down.

    3.Cans Cheaper?? If that is so then why the change in attitude towards aluminum cans? Remember the discussion concerning China and India and there effects on the global demand for metals?

    4. It will be hard for consumers to get used to but Before last summer I thought $2 a agallon gas was expensive......Now I see it as Cheap!
    Whether you think can or think you can\'t, you\'re probably right!

  10. #10
    Join Date
    Nov 2006
    Location
    Missouri
    Posts
    189

    Post

    Good points Greg. 20oz vending is bigger than can vending but still compromises a decent share. I don't think you know what you are talking about regarding warehousing however. Just in time inventory and making one plant in charge of slow moving items for a large region will just take the cost of goods up because that just adds a middleman. Bottlers are already responsible for making/buying what they need. Its not like our suppliers just send us what they want. Pepsi warehouses today are not "loaded down". I'm just saying cans are not going to die tomorrow. Remember too that gas is price inelastic unlike soda. People will stop buying the amounts of soda they do if prices go sky high.
    banned

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