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Varchild2008 (84.64)

Coca-cola's loss is PEPSI & DR. Pepper's gain

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November 17, 2009 – Comments (3) | RELATED TICKERS: DPS , PEP

I am a shareholder of (DPS) 526 shares.   Not a shareholder of (PEP).

But, the way I see it....  With no Coca-cola on store shelves at COSTCO nationwide... That could translate into surprising increase in sales for all other company soft drinks.

So the semi-pessimistic outlook given by DPS for Q4 may be offset by a boost in sales nationwide at COSTCO.... less selection...less competition....More sales....  This also helps PEPSI and any other company's selling soft drinks at COSTCO.

If you want to invest in off-brands.... do a search or visit your local COSTCO to see if there's anything out there...maybe (COT) gets a boost? (HANS) ??? 

3 Comments – Post Your Own

#1) On November 17, 2009 at 9:45 AM, Gemini846 (82.65) wrote:

Honestly I just think this is a shift away from traditional soda beverage companies. The only thing really keeping them in the game is the low cost compared to other beverage types (and thier diversification into water products).

This is what I see people around me drinking in no particular order:

1) Coffee Beverages (SBUX isn't dead).
2) Energy Drinks (NOS, Monster, XS, Rockstar)
3) Bottled Water (Usually re-fillled Smart Water)
4) The occasional addict with a Diet Coke.

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#2) On November 17, 2009 at 9:55 AM, Varchild2008 (84.64) wrote:

Interesting list that does not include what I see people drinking around me:

1)  Diet Dr. Pepper  (because it really does taste like regular)

2)  Canada Dry  (I see this far more than Vernors? But Michigan is so close to Canada...)

3)  Faygo

4)  Sunkist & Crush

5)  Stewarts + IBC + HIRES + A&W root beer

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#3) On November 17, 2009 at 5:24 PM, Melaschasm (65.13) wrote:

I expect Coke and Costco to resolve their differences in less than a month.

This is likely to hurt both companies in the short run, as well as help Coke's competition. 

Soda companies have significant but not absolute brand loyalty, and Costco customers often shop at other stores.  Neither company has a huge power advantage in this struggle, and both are going to lose a little bit every day this lasts.

I would not be surprised if this dispute is resolved, and coke is back in Costco this weekend.

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