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The Coca-Cola Company Message Board

  • Novalis_97 Novalis_97 Jul 3, 1998 1:47 PM Flag

    Cott Cola - only 25 cents a can at Wal-M

    I was getting an oil change at Wal-Mart and
    waiting in the waiting room when I saw a vending machine
    selling Wal-Mart/Cott Cola for only $25 cents a can. I
    couldn't resist the price, so I bought two cans and it
    tasted OK. I think this could be trouble for Coke. Cott
    also makes the "Sam's American Choice" cola you see at
    Wal-Mart these days. Getting a contract with Wal-Mart has
    given Cott a big boost. Cott doesn't sell any cola
    under the "Cott" name but produces generic cola for big
    retail chains like Wal-Mart. What's more, if you visit
    Cott's site at www.cott.com, Cott is already selling its
    generic cola throughout all the emerging markets, so
    there's a chance Cott could gain a foothold in those
    markets before the the Coca-Cola brand-name magic and
    loyalty have a chance to establish themselves in these
    important future markets. To add insult to injury, Cott
    uses white, script, Coca-Cola-like lettering for their
    company name against a Coca-Cola red background. Go to
    www.cott.com and see for yourself. But again, Cott doesn't
    sell any cola under the "Cott" name but only through
    retailers like Wal-Mart. I don't know what impact, if any,
    Cott will have on Coke throughout the world, but if
    Coke has any Achilles' heel, it is the price threat
    posed by discounters like Cott.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Here in California, the grocery store chain
      Safeway sells these Cott sodas under the name "Safeway
      Select." The cola is sold in a familiar red-and-white can
      for some dirt cheap price.
      Personally, I wouldn't
      worry about these store brands. First of all, Cott is
      just barely profitable. They aren't making a killing
      with this business. Think about it. They have
      absolutely no pricing power. By virtue of their store brand
      status, these sodas HAVE to be priced significantly lower
      than Coke. At the same time, the costs of
      manufacturing these sodas is probably at least equal to the
      costs of manufacturing Coke. In fact, Cott's costs
      might even be higher because Coke takes advantage of
      economies of scale. The upshot of all this is that a little
      strategic pricing by Coke (i.e., 12-pack specials) might
      force the store brands into the position of actually
      losing money.

      • 1 Reply to kointc
      • Every month the stuff is on sale priced at $2.99
        pre case. But I thought SWY manufactured it's own
        soda. Does Cott like make some and then SWY manufacture
        the rest itself? SWY does a lot of
        buy-one-get-one-free in Coke-Pepsi-7UP products. This week the Pepsi
        products 12PK are buy one get one free, the Coke 12pk is
        $2.79 until August 2nd, and the SWY SELECT case 24pk is
        $2.99 a case mix or match flavors. And the 7UP product
        6pks are buy-one-get-one-free through August 2nd. All
        prices with Safeway Club Card. All the soda is on sale
        there . Soda has a high pm, very high. Also, I am
        talking the NorCal/WesternNev division of SWY.

    • Cott doesn't sell its cola under its own name in
      the U.S. but does use its own name in Canada and, I
      imagine, other markets worldwide. It is probably using the
      Coca-Cola-like script lettering for "Cott" in those worldwide
      markets as well.

 
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