Wholesale club, Costco has discontinued carrying Coca-Cola products after the two were unable to settle pricing disputes. While the tension between the two may not last, it could be indicative of a developing trend between retailers and producers struggling to be affordable and make a profit during these trying times.
New reports show that over 14.6% of Americans were food insecure over the course of 2008 and retailers are doing their part to attract customers and make things affordable during the recession by providing them with low prices. On the other hand, corporations like Coca-Cola Co. are attempting to maintain profit margins under the demands of retailers to lower-wholesale prices.
Such negotiations seldom become public domain, but given the high profile status of the companies and their inability to reach an agreement, the Costco and Coca Cola dispute has become an exception.
Retailers would like more pricing control but producers remain unwilling to budge on the issue. Costco has responded to Coke by refusing to sell their products for their failure to adhere to their business model of carrying brand name merchandise at discounted prices.
Coke has declined to comment on the negotiations at this time while Costco Reps have confirmed the decision without going into further detail.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on the Internet at www.equitiesmagazine.com, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription to EQUITIES Magazine
