Bottlers Cite Problem of 'Ambush Marketing' on C-Store Cooler Doors. Reduces 'Value of Cold Vault Door.'

Coke, Pepsi and independent bottlers cite growing infringement on their C-store cooler offerings from shelves attached by suction cups to inside of cooler doors which display products not sold by bottlers. BD recently visits several gas C-stores in metro NYC area. At one, view of two rows each of Coke and Pepsi products were blocked by suction cup-held devices on cooler doors selling non-Coke/Pepsi/Cadbury energy drinks or confection. Top-10 Coke bottler says these devices "have spread significantly and are reducing the value of the cold vault door." Adds: "We are addressing this issue with each customer and hopefully will do it in the 2003 CMA negotiations."

Bottlers. BD talks to multiple Coke/Pepsi/independent bottlers around country. Coke bottlers: 1) "People who aren't paying or can't get shelf space are slapping these things on the doors. It's a nuisance." Adds: "CMA programs next year will likely prohibit" C-stores from placing them "in front of our products." 2) "We use them, too, but on our own doors. If (other merchandisers placing them) are smart enough to crawl between the cracks, shame on us." 3) "It's a growing issue, one we need to address and one we ought to be able to control." 4) "I think it's mainly the independently-owned (C-store) operators who are trying to make a few pennies on these high-priced (energy) drinks. They're making a mistake." Pepsi bottlers: 1) "It's a guerrilla tactic." Adds: "If a driver is managing the store properly, it shouldn't happen. The driver should move them. (But) chains are not setting up regional standards. Any merchandising in a bottler's space is an issue of merchandising discipline." 2) "It's a form of ambush marketing." 3) "They suck." Independent bottler: "The problem is mainly from energy drinks and candy. It's getting worse. It blocks our product."