Costco switch from Pepsi to Coca-Cola in efforts to attract widespread food court visitors
U.S.A – The global retailer Costco has declared it will shift from Pepsi to Coca-Cola beverages in its food courts in early 2025.
The firm implemented an important transformation after supporting Pepsi products since 2013. As part of continuous evolution, Costco has decided to implement this change to refresh its selection and preserve the much-loved bargain hot dog and soda deal at US$1.50.
Ron Vachris, the CEO of Costco, confirmed at the annual shareholder meeting that Coca-Cola products would be returning to the food court.
He said, “Members can now access familiar Coca-Cola products like Coke, together with Diet Coke, Coke Zero, and Sprite, at Costco’s food court, sparking broad customer interest.”
After external evaluations conducted by Costco, some consumers preferred Coca-Cola because it delivers high value and a preferred taste experience. The relaunch of preferred Coca-Cola brought enthusiasm from consumers who love the brand.
Pepsi supporters delivered negative feedback about this change because they sincerely like what’s currently in stores. Due to consumers’ strong brand loyalty to large soft drink companies, there is a lot of discussion about recent product changes.
According to Costco, their partnership with Coca-Cola supports the company’s efforts to attract widespread food court visitors since Coca-Cola has accomplished nationwide market dominance in soft drinks.
Last year, Costco announced its annual membership fees will be increased by US$% in the US and Canada, and its higher-tier membership fee will be increased by US$10.
The annual membership fee would increase to US$65 from US$60, while the higher-tier plan would increase to US$130 from US$120 in the first membership increase since 2017.
The company raised membership fees on average every 5 and a half years. Although the company was on track to raise membership fees in 2022 or 2023, inflation challenges implored the company to not increase fees in the past year.
Costco relies on membership fees to keep prices low and drive revenue.
The company expressed optimism over the fee increase, reiterating it has thrived on customer value and strived to keep prices lower than competitors. The company revealed it intends to direct the extra funds from the fee increase to its bottom line, a catalyst for growth.
Share prices increased by 2% on July 10 following the announcement but fell 3% the following day, indicating a mixed market reaction.
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