If you are hitting Costco Wholesale (COST) for your Monday Night Football party or Thanksgiving celebration, you won't be able to get those cases of Diet Coke. The warehouse-style retailer, which operates more than 550 locations, is no longer carrying Coca-Cola (KO) products in its U.S. stores. That means no Coke, Diet Coke, Sprite, or Dasani water, among other products.
Evidently, the retailer and the beverage giant are embroiled in a pricing dispute. A statement on the Costco website indicated that "Coca-Cola has not provided Costco with competitive pricing so that we may pass along the value our members deserve."
While it is admirable for Costco to seek out the best values for its shoppers, there is something to be said for convenience. People don't want to make a special trip to the grocery store for something as standard as Coca-Cola. So does this mean people will switch to Pepsi, or do their shopping elsewhere?
In other Costco news, the company opened its first Manhattan-based store last week. Three other warehouses were already open in Brooklyn, Queens, and Staten Island.
Beth works for The Options News Network (www.ONN.tv), which provides daily stock and options commentary. The above comments are not intended as trading advice.
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Reader Comments (Page 1 of 1)
11-17-2009 @ 1:59PM
John said...
Good for Costco. Manufactures should sell Costco at the same prices they do other 550 store chains. Let Costco's low markup result in a better deal for consumers. Who is Coke protecting, the grocery stores and/or convenience stores that don't do everyday low pricing?
12-13-2009 @ 1:02PM
robert said...
This is kind of crazy. I can't beleive I can't buy coke at costco anymore. I really prefer code over pepsi. Well I sure am glad I have my own soda maker. I got a great deal on mine at http://www.seltzer-maker.com