Costco bringing back Coke products to food court

[y_p_w]

The switch was so long (2013) ago I didn't even remember that it happened.

https://www.usatoday.com/story/money/2025/01/26/costco-pepsi-coca-cola/77958294007/

 

[dubber09]

Why is it always one or the other? Why can't places have and offer a choice? Def not in consumer best interests.

 

[BHopkins]

The article I read said that the change would save Costco money, allowing them to keep the $1.50 pricing for the hot dog and soda drink. It also said that Costco polled customers, and found that something like 80% preferred Coke products at Costco food courts.

Both of these really surprise me. It is hard for me to understand that Coke can offer enough of a price savings, to make a difference in the $1.50 hot dog/soda pricing. I realize Coca-Cola is a massive company, that can afford to leverage their pricing, for the prestige of having their fountains in every Costco. But Pepsi-Cola is no small company.

I find it even more difficult to believe such a large share of Costco customers would prefer Coke. Admittedly, it has been a few years since I have read any articles about Coca-Cola vs Pepsi-Cola market share, but last time I did, I thought the split was closer to about 50% Coca-Cola vs 40% Pepsi-Cola, with the other 10% being other players. You would think, or at least I would think, that Costco members would closely mirror that brand preference.

 

[dishdude]

I have noticed pricing of Pepsi/Frito-Lay products lately to be completely egregious. The price of 2 liter bottles of Pepsi have doubled, and the price of Tostitos products are through the roof. How can Trader Joe's sell a jar of salsa for 1/3 the price? The Tostito tortilla chips are more than double the cost of the authentic Mexican ones on the shelf next to them! I've also heard complaints of KFC and Taco Bell pricing but I don't frequent those places.

 

[CarLuver]

seeing i just had a costco hotdog today , i can say i am a coke kinda person, especially McD coke. McD seems to have their own formula as it taste different than can coke or other places .

Costco is a shrewd negotiator and they must have gotten a sweeter deal from coke. Remember its just not the price, but also the prestige and marketing of having coke products in your biz .

Coke never disappeared from costco as they sold it in the store itself .

 

[ctechbob]

seeing i just had a costco hotdog today , i can say i am a coke kinda person, especially McD coke. McD seems to have their own formula as it taste different than can coke or other places .

I've always wondered if that's just me. Never-ever has McD Coke products tasted like I expect them to.

Chick-Fil-A on the other hand, is usually spot on.

Go figure.

 

[dogememe]

I couldn’t care less, I rarely drink soda. But if 80% of people really prefer Coke, it makes sense.

 

[TimeFlies]

My grandmother loves Coke.
But give her a Pepsi and she spits it out, and says it is disgusting. The wife and I also prefer Coke, but aren't as grossed out by Pepsi, as grandma is.

 

[DemoFly]

Why is it always one or the other? Why can't places have and offer a choice? Def not in consumer best interests.

free market capitalism

 

[Snagglefoot]

I’m a happy camper with the Coke and have to admit I like Coke. I’m going to put this out there. Mind boggling as it seems, the marketing department of Coca Cola took over the decision and Coca-Cola pays Costco to put virtually free Coca-Cola into the machines. The advertising makes it worth it. Sound possible?

 

[GON]

The article I read said that the change would save Costco money, allowing them to keep the $1.50 pricing for the hot dog and soda drink. It also said that Costco polled customers, and found that something like 80% preferred Coke products at Costco food courts.

Both of these really surprise me. It is hard for me to understand that Coke can offer enough of a price savings, to make a difference in the $1.50 hot dog/soda pricing. I realize Coca-Cola is a massive company, that can afford to leverage their pricing, for the prestige of having their fountains in every Costco. But Pepsi-Cola is no small company.

I find it even more difficult to believe such a large share of Costco customers would prefer Coke. Admittedly, it has been a few years since I have read any articles about Coca-Cola vs Pepsi-Cola market share, but last time I did, I thought the split was closer to about 50% Coca-Cola vs 40% Pepsi-Cola, with the other 10% being other players. You would think, or at least I would think, that Costco members would closely mirror that brand preference.

A few years back Coca cola, especially it's number one selling soft drink, Diet Coke was pulled from Costco.

The rift reported was Coke was unwilling to discount Diet Coke enough for Costco, and Coke's position was that some shoppers would avoid Costco if diet coke was not on the shelf.

Diet Coke is currently in the shelf at Costco. I find at Walmart, Diet Pepsi costs less than diet Coke.


From an Internet article:

I’m not sure what the current situation is, but there have been times (as recent as within the last 5 years) where Costco stopped selling all Coca-Cola products across the nation.

The story that I heard about the most recent stoppage had to do with an argument between essentially two people, the head buyer at Costco and the person at the Coca-Cola company that they negotiated with.

Costco had demanded a lower price on cases for better profitability. And for reference, Costco’s gross profit on a 32 can case of Coke is about $1–2/case. They sell so much of it (Coke, Diet Coke, Sprite, etc.) that this profit margin is acceptable.

In the past, Coke usually responded by offering to increase the size of the case (more cans), but NOT reduce the price for Costco during a time when they had been INCREASING the price for most of the rest of their customers.

 

[Snagglefoot]

I've always wondered if that's just me. Never-ever has McD Coke products tasted like I expect them to.

Chick-Fil-A on the other hand, is usually spot on.

Go figure.

We had an upset in the local city water system. All the drink fountains in the city were roped off and the McDonalds gave me a can of Coke with my meal. It made me think about it. Your Coke is made with city water and the Coke syrup inside the stainless steel vessel. No Coca-Cola tastes identical between stores because it uses city water. It may go through filters but it’s still city water.

 

[ctechbob]

We had an upset in the local city water system. All the drink fountains in the city were roped off and the McDonalds gave me a can of Coke with my meal. It made me think about it. Your Coke is made with city water and the Coke syrup inside the stainless steel vessel. No Coca-Cola tastes identical between stores because it uses city water. It may go through filters but it’s still city water.

Sure, but I can go to McD and then CFA that are right across the street from each other and they will be vastly different.

Also, and I can't describe it, but ALL McD Coke (Or Coke Zero/Diet Coke in my case) tastes the same at every McD I've ever been to. So McD Coke doesn't taste like Coke, but other places do.

 

[y_p_w]

We had an upset in the local city water system. All the drink fountains in the city were roped off and the McDonalds gave me a can of Coke with my meal. It made me think about it. Your Coke is made with city water and the Coke syrup inside the stainless steel vessel. No Coca-Cola tastes identical between stores because it uses city water. It may go through filters but it’s still city water.

It’s up to the business how it sets up its water feed for fountain drinks. But I’ve heard of reverse osmosis systems used. You can take the most awful water with the crustiest dissolved minerals in it, and out will come pretty much mineral free water. Granted more water is wasted than produced as drinking water, but I’ve heard of systems that save that for stuff like landscaping. Probably would be great for bathroom use though.

Plants that mix syrup to go into bottles and cans almost assuredly use RO water these days.

 

[y_p_w]

I have noticed pricing of Pepsi/Frito-Lay products lately to be completely egregious. The price of 2 liter bottles of Pepsi have doubled, and the price of Tostitos products are through the roof. How can Trader Joe's sell a jar of salsa for 1/3 the price? The Tostito tortilla chips are more than double the cost of the authentic Mexican ones on the shelf next to them! I've also heard complaints of KFC and Taco Bell pricing but I don't frequent those places.

Yum Brands was more or less a spinoff of Pepsi from more than 25 years ago. However, Pepsi products more or less are locked into KFC, Taco Bell, and Pizza Hut.

The weird one is Dr Pepper. Around here the local Pepsi bottler distributes packaged Dr Pepper. But I see it at fountains where either Coke or Pepsi is sold. They’ve got some convoluted distribution contracts with that.

 

[TimeFlies]

https://www.allrecipes.com/article/why-mcdonalds-coke-tastes-better-than-all-others/

 

[y_p_w]

Why is it always one or the other? Why can't places have and offer a choice? Def not in consumer best interests.

Convenience stores often have both Coke and Pepsi.

 

[GON]

https://www.allrecipes.com/article/why-mcdonalds-coke-tastes-better-than-all-others/

The was a really good article- thanks for posting it.

 

[ctechbob]

https://www.allrecipes.com/article/why-mcdonalds-coke-tastes-better-than-all-others/

Yea, I call BS on that article.

It might be 'better' to some, but for me it is just different, and I don't care for it. I want mine to taste like it comes out of a bottle or can, and McD's certainly doesn't.

And there's no way McD is still using those old steel cans. They're using the same system everyone else is using, plastic bags with the syrup in them. The counter the machine sits on has the bags underneath it just like everyone else.

It also doesn't hold more CO2, it is flatter than anything I've ever had bottled.

 

[Carmudgeon]

I prefer Coke to Pepsi, but I'd be happier if the news said Costco would return to accepting AMEX, or Mastercard, instead of Visa.

Or Walmart and Kroger decided to join everyone else in the 21st century and accept NFC payments.

Why is it always one or the other? Why can't places have and offer a choice? Def not in consumer best interests.

Same reason why if you buy a new Porsche or GM product it comes with Mobil as factory fill, not Shell or Castrol.


These are supplier-driven deals, more for their benefit than consumers' benefit.