This year, Coke bottling system has lost and then regained monthly CSD volume share lead in NYC metro supermarkets (BD 7/9/04). In January, its share was 35.6. In May-June period, it had dropped to 30.1. In October, it was back up to 36.5. Pepsi system started year with 34.1 share. In May-June period, its share rose to 38.2. In October, it was 31.5. YTD. In YTD data, Coke system's share is 34.3, down -3.8 vs comparable 2003 period. Pepsi system at 34.1, up +1.4.
What happened. In May, CCE introduced new package -- 1.5 liter PET -- in NY metro supermarkets. It began depleting 2-liter inventory in April. Its plan was to sell 1.5 liter at higher per-ounce pricing than it had been selling 2-liter -- and then to raise 2-liter pricing -- to improve its margins. Coke system executives say plan envisioned stores selling 1.5-liter and 2-liter side-by-side with pricing bracketing Pepsi's 2-liter.
Plus. But, in early stages, execution appeared to go awry. Some stores dropped Coke's 2-liter. In other stores, Coke 2-liter products remained on sale, but 1.5-liter took over space where 2-liter had been; that caused consumer confusion, says system executive. Notes other system executive, "the early execution was not sterling." But by early summer, CCE started taking action to rectify situation. It moved 2-liter bottles back into more prominent position, so consumers could see both packages and also see the price difference. In mid-summer, major NY metro chain Stop & Shop -- which had dropped 2-liter and was selling only 1.5-liter -- started selling 2-liter again.
Dollars and cents. Pricing varies at different stores on different days, but one recent pricing snippet showed: 1) Coke 2-liter at $1.19. 2) Coke 1.5-liter at 89A2. 3) Pepsi 2-liter at 99A2. Per-ounce. Based on that, Coke is selling at about 1.8A2 per ounce and Pepsi is selling at 1.5A2 per ounce.
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