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The Coca-Cola Company Message Board

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  • rw23480 rw23480 Jan 15, 1998 10:25 PM Flag

    Rite Aid Boycott

    The explanation for what you are seeing in the Rite Aid stores is really very simple. Pepsi chose to offer Rite aid a
    marketing plan that gives these stores a price per case that is so low as to be unprofitable for Pepsi. Coke wisely choose not to sell
    cases for no profit. Pepsi is already finding that this move will hurt them with their other customers who have begun to sream
    about paying a much higher price for the same product. Many of those customers are now going to buy their product at rite aid
    which will hurt their profits even more. They will find that instead of these customers bying direct from the bottler they are now
    going to go to Rite aid and pepsi will make no profit on the cases they buy. True Coke will lose some case volume but when you
    understand that those were low profit margin cases Coke can easily gain back some of those cases from some of Pepsi's angry customers
    and at a higher profit per case. In the end Coke will easily sell enough higher profit cases to more than offset any loss to the
    bottom line. You should see the deal Pepsi offered just to get in these stores. It makes me wonder what they are mixing in their
    drinks !!! This will turn out to be good for Coke and bas for Pepsi.

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