June 09, 2006
Wal-MartAde
In this March 14, 2006 entry, we reported that independent Coca-Cola bottlers were seeking an injunction against Coca-Cola Co. and Atlanta bottler Coca-Cola Enterprises to stop plans to change how Powerade is delivered to Wal-Mart Stores. According to this report, Coca-Cola stated in a recent court filing that it felt “ominous” pressure that Wal-Mart would create its own private-label sports drink if delivery methods were not changed. Coca-Cola also stated in the filing: “This is no mere idle threat...[t]his is precisely what Wal-Mart has done with water sales in its stores where the two largest water products are warehouse delivered and Coca-Cola’s and Pepsi’s direct-store delivered water brands are left to fight for third place.” Apparently, even Coca-Cola fears Wal-Mart.
Posted by franchiselawblog at June 9, 2006 06:16 PM