PepsiCo, Inc. has announced it will begin bringing Gatorade directly to Dollar General’s 9,200 stores on Monday in a move that the company expects will bring double-digit growth in sales volume. The change means that PepsiCo is extending its shift to Direct Store Distribution from warehouse pickup to another sales channel, with the stated advantage that it will give the company more control over in-store promotions, cooler and shelf placements.
Pepsi employees have been directly delivering Gatorade to stores like CVS and Walgreen’s since January, which has increased Gatorade’s sales volume by 20 percent. The company also began allowing key independent DSD wholesalers to begin delivering the product to convenience accounts.
The direct-store distribution system was announced last year and is possible due to Pepsi’s acquisition of its two largest North American bottling companies. Pepsi stands to save $550 million a year once the distribution system changes are complete in 2012.