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Home » Topics » Distribution

Distribution
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Teamsters Say Reyes Coke Risks California Sales With ‘Cost-Cutting Strategies’

Reyes Says Share Gains Prove Otherwise. Coke Backs Bottler’s Strategy
February 15, 2019

The International Brotherhood of Teamsters has criticized distribution changes made by Reyes Coca-Cola Bottling (RCCB) in Southern California. During a Feb. 13 investor conference call, union leaders said the bottler’s “cost-cutting strategies” have undermined service to


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Primo Water Dispensers

Primo Water Wins Trump Tariff Exemption

January 18, 2019

Last July, Winston-Salem, NC-based Primo Water found itself caught up in President Donald Trump’s trade war with China. The U.S. imposed import tariffs on about 6,000 Chinese goods worth about $200 billion.


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Buffalo Rock Sues PepsiCo Over Transshipping

January 18, 2019
On Jan. 15, Birmingham-based Pepsi bottler Buffalo Rock sued PepsiCo for breach of contract, alleging the franchisor has failed to stop the transshipping of unauthorized products such as Pepsi-Cola and Mtn Dew into Buffalo Rock’s exclusive territory. Buffalo Rock’s franchise rights cover portions of Alabama, West Georgia and Florida. The lawsuit asks for at least $1 million in actual damages, plus more for punitive damages. PepsiCo’s company-owned bottler, Pepsi Beverages Co., also is named.
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Territory Changes and Deals: Dec. 14, 2018

December 14, 2018

Keurig Dr Pepper has agreed to acquire the sales and distribution rights of Swire 7Up Dr Pepper of Pasco, Washington, which covers territory in Franklin and Benton counties on the Columbia River; brands being moved also include A&W, Sunkist, Schweppes, Cactus Cooler soda, Deja Blue bottled water and Venom energy drink


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Muhtar Kent (Courtesy Coca-Cola)

Future Smarts 2018 Highlights

Coca-Cola, Coke Swire, PepsiCo-Starbucks, Nestlé Waters, Anheuser-Busch
December 14, 2018

BD held its annual Future Smarts conference on Dec. 7 in New York City. The program focused on the implications of massive changes this year to the North American non-alcoholic beverages landscape. New leaders have taken over all three of the largest soft drink makers -- Coca-Cola, PepsiCo and Keurig Dr Pepper -- since  2017. Acquisitions of Dr Pepper Snapple by Keurig Green Mountain, Costa Coffee by Coke and SodaStream by PepsiCo have all signaled a more aggressive approach to portfolio transformation. Meanwhile


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LaCroix’s Sudden Sales Decline Persists.

Company Blames ‘Scurrilous Allegations’ Despite Higher Pricing, Increased Competition.
November 30, 2018

The sudden October sales decline of National Beverage’s LaCroix sparkling water brand (BD Email Alert 11/13/18) appears to have continued into November. According to IRI data published this week by analysts at Susquehanna Financial Group, National Beverage’s sparkling water volume (made up of mostly LaCroix) declined -7.1% as dollar sales fell -1.2% during the four weeks ending Nov. 18. That followed a volume decline of -6.9% and a dollar decline of -2.7% during the four weeks ending Nov. 3, according to Nielsen data published more than two weeks ago by Wells Fargo. Prior to these declines, National sparkling water dollar sales had grown +6.3% in the four weeks ending Oct. 21, according


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Sources: Honickman, PepsiCo Negotiating Possible NJ, Philly Territory Deal.

Honickman Group is negotiating for PepsiCo-owned bottling territory in New Jersey and Philadelphia
November 30, 2018

BD has learned from multiple sources that the Honickman Group is negotiating for PepsiCo-owned bottling territory in New Jersey and Philadelphia. Honickman already operates a swath of Pepsi territory in New Jersey, south of Trenton, including Burlington, Pennsauken, Camden and Gloucester. The proposed refranchising could give Honickman control over the rest of New Jersey, as well as metro Philadelphia to the southwest. The territories in question are operated by Pepsi Beverages Company (PBC), the PepsiCo-owned bottling unit that covers


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Keurig Dr Pepper Retains Vita Coco, High Brew; Signs Evian.

Plus, Quarterly Results.
November 12, 2018

Without ceremony, Keurig Dr Pepper CEO Bob Gamgort shed light on the future of Allied Brands Vita Coco, High Brew and Neuro during the company’s Nov. 7 earnings conference call. Distribution agreements with all three have not changed, he said. “The Allied Brand portfolio has settled out nicely in a fairly short period of time,” Gamgort said, referring also to the additions of Evian, Peet’s Iced Espressos, and Forto Coffee Shots distribution deals, and the acquisitions of Big Red and Core water. Allied Brands represent about 5% of KDP sales and profit, Gamgort has said.


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Lemon Lemon Shifts to International Markets.

PepsiCo’s Izze Fusions Mostly Gone in U.S. Amid Core Brands Refocus.
November 12, 2018

Lemon Lemon and Izze Fusions, launched in early 2017 as part of PepsiCo’s “Next Gen” CSD push, have been mostly phased out of the U.S. market. Both sodas were formulated with a stevia/sugar blend and less than 70-calories per 12-oz can. Lemon Lemon, a sparkling lemonade, contains 6% lemon juice. Izze Fusions contained 5% juice. Lemon Lemon reached almost 435,000 cases in the U.S. during the second quarter of 2017, according to retail data. While not discontinued, the brand dropped to almost 30,000 cases during the third quarter of this year. However, Lemon Lemon is gaining momentum overseas, according to a source


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