You might already know that
Marketing Blurb prefers
not to shop at Wal-Mart. However, we readily recognize and cannot challenge the fact, that Wal-Mart has the
most efficient retail distribution system in the history of the universe. So it should not come as a
surprise that the retail giant would prefer to receive and ship Coke products from its own regional distribution centers, rather than allow regional bottlers to make DSD, or direct store delivery. DSD is the industry-standard procedure, mind you, and local bottlers are proud of their own efficiency as well. So, when Wal-Mart begins to use its own distribution system for Coke’s Powerade Sports Drinks in April, 54 Coke bottlers will be suing parent Coca-Cola, and its bottling wing Coca-Cola Enterprises. At issue is whether or not this procedure creates a precedent which will doom the tradition-bound system of direct store delivery.
The Wall Street Journal has the
fizz on this story (paid subscription required.)
Marketing Blurb says run for cover, because this confrontation is going to get very ugly.
Photo Credit: Coca-Cola USA
Too bad the leadership at Coke doesn't have the stones to say no to Wal-Mart and yes to its loyal distributors as Jim Wier, formerly of Snapper, did when facing the same deal with the devil. I blogged about him last month, but you can check out his story in Charles Fishman's book, titled "The Wal-Mart Effect." The Wier story is excerpted in the Jan/Feb 2006 issue of Fast Company.
Posted by: Mark True | February 19, 2006 7:44 PM | Permalink to Comment