Coca-Cola Will Cave to Costco: Poll

Stock quotes in this article: COST , KO , DPS , BJ  

NEW YORK (TheStreet) -- As you likely know by now, Costco(COST Quote) and Coca-Cola(KO Quote) are engaged in a price war of sorts -- and as the two duke it out, the membership warehouse club says it has terminated all new orders of Coke products.

This, of course, is not exactly good for Coca-Cola.

The beverage giant believes its prices are fair, but Costco says they are not wallet-friendly. The brands in question include Coke Classic, Cherry Coke, Black Cherry Vanilla Coke, Diet Coke, Coke Zero, Sprite, Squirt, Dasani Water and Vitamin Water.

In light of this, we asked you: Who do you think will be the first to blink, Costco or Coca-Cola?

Before we get to your responses, it might be worth visiting the background: With an economy in turmoil, it is not unusual for product makers and wholesale club operators to squabble over prices; disputes like those of Costco and Coca-Cola are nothing new these days.

While product makers like Coca-Cola aggressively squeeze as much as they can into their profit margins while meeting retailer demands, retailers want to win over recession-wary consumers with the lowest prices possible.

Wholesale operators like Costco, in particular, have business models that depend on keeping prices on brand-name merchandise low. They strive to wield their power in negotiating prices with product makers.

  • Loading Comments...
  •  

SHARE:

  • email
  • print
  • comment
  • digg
  • delicious
  • linkedin

Recent Comments





Connect with TheStreet

Dow Jones S&P 500 NASDAQ 10-Year Note
10,058.64 1,070.52 2,150.87 36.33
Oil *
72.02
UP
150.25
UP
13.78
UP
24.82
UP
0.41
10 Yr
3.63%
SPDR Gold
105.45
+1.52%
+1.30%
+1.17%
+1.14%
Data delayed 20 minutes

More From TheStreet

Latest Headlines
  • Top Rated Stocks from TheStreet Ratings
  • Find returns with the Dividend Calendar

Brokerage Partners

TheStreet Premium Services

All Services