Subscribe to this Blog

Blog Archive

Subscribe Via Email

Enter your email address:

Monday, February 12, 2007

Coke Settles Lawsuit with Bottlers

Coke has managed to put a difficult battle behind it.  Last year a suit was filed against the Coca-Cola Co as they attempted to realign distribution with Wal-Mart.  Originally, Coke products were distributed direct to store.  Wal-Mart wanted the distribution to go through its efficient network of distribution centers instead.  Coke wanted to please the world's largest retailer and said yes.


This prompted all of the smaller bottlers and regional distributors to get sliced out of the Wal-Mart food chain.  So they filed a lawsuit to prevent the test of the distribution of the PowerAde product.


The bottlers won that right in the settlement.  They make up about 11% of Coke's North American distribution volume.  The two groups of parties to the lawsuit have agreed to test a new distribution systems with Wal-Mart and other customers together.  The move was successful for the smaller regional bottlers.  It was also successful for Coca-Cola, which will benefit from supply partners that have now received an extreme and not to subtle wake up call.  Improve your distribution to please Wal-Mart or you will not remain our partner.