Well, for all of you Coke lovers that shop at Costco, the long month without Coca-Cola products on the shelves is over. It was announced yesterday that Coca-Cola products will be returning to Costco store shelves on Monday. The pricing dispute that led Costco to halt orders of Coca-Cola’s soft drinks has been resolved.
“Effective this Monday, Coca-Cola products will be on our shelves,” said Costco CFO Richard Galanti on a conference call with analysts, following the company’s earnings release.
Galanti would not specifically say what the new deal with Coke is, rather he implied that they will now be offering better pricing and different packaging that is better for Costco’s members. Here’s what Coke spokesman Scott Williamson had to say: “Our program aligns Coca-Cola’s brand and package offerings with the needs of Costco’s members in a way that is fair and equitable for both Costco and Coca-Cola.”
I’m going to guess that Coca-Cola capitulated once they realized that Costco was serious and that it wasn’t really going to affect Costco as much as it would affect sales of their Coca-Cola beverages. Since I never really buy soda, at Costco or anyplace else, I wasn’t truly invested in this fight except from the perspective of someone that loves Costco so much she owns their stock. But, I am glad that they stood firm and got a better deal for everyone that shops there and does buy Coke. I think this demonstrates a lot about the Costco resolution to offer their members exceptional value and competitive pricing on everything in their stores. Hopefully this will also make it a little easier for Costco to negotiate deals with other manufacturers and distributors in the future because they’ll know that Costco is serious about obtaining the best deals and won’t hesitate to stop carrying a product, no matter how big the brand. Go Costco!
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