AOL Money & Finance

Coca-Cola having issues with Wal-Mart requests

More

In another purported Wal-Mart heavy-handed tactic, it appears to have asked the Coca-Cola company to alter its century-old beverage distribution model and deliver its products direct to Wal-Mart's warehouses. This would allow Wal-Mart increased scale and efficiency since it could replenish Coke products within its own supply chain instead of having Coke bottling partners visit stores daily to re-stock Wal-Mart stores nationwide.

The suspected threat? That Wal-Mart would launch a competing sports drink product to sit alongside Coke's Powerade product in all Wal-Mart stores -- and that would dent Coke's profit a tad. While this is a rumor at this point, it seems plausible -- Wal-Mart has so many private-label products (Sam's Choice products, for example) already. Many of those third-party manufacturers would jump at the chance to make a sports drink product for Wal-Mart stores.
So, is Wal-Mart using arm-twisting to get what it wants? Absolutely, and it's a right that it has. With Pepsi product Gatorade controlling 82 percent of the sports drink market in the U.S., Coca-Cola can't let Powerade slip anymore without harmful side effects. This will be interesting to watch, as this change for Coca-Cola surely will mean its nationwide agreement and processes with bottling/delivery partners will now be altered quite a bit. Ah, the power of cheese Wal-Mart.

Reader Comments (Page 1 of 1)

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

Symbol Lookup
IndexesChangePrice
DJIA-154.4810,309.92
NASDAQ-37.612,138.44
S&P 500-19.141,091.49

Last updated: November 28, 2009: 01:19 AM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

    BioHealth Investor Headlines

    WalletPop Headlines

    My Portfolios

    Track your stocks here!

    Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

    BloggingStocks Partners

    More from AOL Money & Finance

    WalletPop Headlines