Costco at War With Coca-Cola

ATLANTA (TheStreet) -- Costco Wholesale(COST Quote) is severing its ties with Coca-Cola(KO Quote) after a pricing argument.

The wholesaler will no longer carry products from the behemoth beverage company. Costco has been wooing shoppers with low prices, but Coke has made it difficult to offer wallet-friendly prices as it has attempted to retain its margins.

"Costco is committed to carrying name-brand merchandise at the best possible prices. At this time, Coca-Cola has not provided Costco with competitive pricing so that we may pass along the value our members deserve," said a message on the company's Web site.

While the company will not remove products already in stores, it will not restock any Coke merchandise until the issue is resolved.

-- Reported by Jeanine Poggi in New York.

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