PepsiCo products removed from supermarket giant's shelves over 'unacceptable' price hikes
- Thread starter NorthernHawkeye
- Start date
It almost seems like the pop companies are taking the tobacco route. It's a declining category so let's just price the shit out of the products for addicts
No way these inflated costs are going to the workers
It's a weird strategy. I like pop and used to always keep some in my fridge when it was $2.50 a 12 pack. But now I simply don't drink any. Seems weird to price casual drinkers like me out
I never buy soda unless it's on sale - tho of course the sales aren't as good as they once were
There's quite a few products in grocery stores that i totally believe at least some level of price gouging is at play.
Less people drink soda.
The companies know the soda drinkers that are left are diehard, will pay a premium.
Another factor is grocery stores and other outlets also charge for shelf space.
Lots of factors. Bottle makers, aluminum prices, ingredients, shipping, and wage increases.
It’s not one thing. If it was a high school kid could run the company.
The companies know the soda drinkers that are left are diehard, will pay a premium.
Another factor is grocery stores and other outlets also charge for shelf space.
Lots of factors. Bottle makers, aluminum prices, ingredients, shipping, and wage increases.
It’s not one thing. If it was a high school kid could run the company.
They’re paying a much larger amount for labor now, their raw materials suppliers are paying a ton more, the fuel for those Pepsi trucks is a lot more, insurance costs have skyrocketed.
And probably half of the country with 401K’s has Pepsi stock in their portfolios and they have to provide a dividend and earnings growth.
You call it gouging because you’re so angry at life all the time.
It’s survival in the world of business today.
Step back at the end of the aisle where chips are stocked and you see just how much space they take up now with the explosion in what is called the “salty snack”category. Grocery chains realize how much they have to allocate now for shelf space. Did you guys notice products that weren’t around ten years ago like all the “Skinny Pop” stuff and flavored rice cakes that “extend the category” as it’s termed? So many more things to cram on to those shelves. So the chains realized that they could charge for “center shelf” exposure if Frito wanted that prize “eye level” space where studies have shown most consumers look first.
BTW Frito/Lay delivery drivers do the shelf stocking as do the Pepsi drivers.
(Full disclosure my late husband was a Marketing Director for Frito Lay in Dallas back in the late 80’s for two years, before he was recruited away by another consumer products company who moved us to Michigan.)
Sharing all this makes me laugh because the kids and I used to have to go into all the different chain grocery stores with him on vacations to see the displays and pricing. We still laugh at those memories of them as kids rolling their eyes in the back seat when we’d pull into a King Soopers or Safeway somewhere.
Good times. 😂
And so many of those workers have 401K’s that the company matches at some level - and PepsiCo is a very reliable choice to include in those 401’s.
Agree but often those are specific end aisle promos tied in to special events. Like Doritos/Salsa now for the football playoffs. Whose grocery store doesn’t have some sort of a setup like that right now?
In our area Utz has random displays set up not in that salty snack aisle because they’re somewhat newer here as a more Midwest brand and there’s just no room unless it’s at a WalMart Super Center.
I don’t drink much soda because frankly it’s unhealthy.
When and if I do it’s always the store brand unless the big brands have a BOGO going on.
this is why i love going to trader joes.
You have 6-7 aisles of product. There is no space for 20 different varieties of every item.
I can get in and out with my shopping complete in 15-20 minutes.
They dont have self checkouts and i always seems to get twice the amount of items for the same price i do when i leave hyvee or fareway.
I’m also a Trader Joe’s fan and Aldi too.’
During the recent auto worker strikes, it came out that labor is less than 5% of new vehicle costs. It is likely many other products have similar numbers. Sure, there are labor intensive products, but labor to produce PepsiCo offerings is prolly minimal.
Transport, warehousing, stocking, … that’s a different discussion.
I work at Walmart...if they took all their profit and instead of paying dividends gave it to the workers I would gain around 5 thousand.
I also would lose hundreds of thousands from the stock crashing.
Over time you’d be ahead. And you also have by law a lot of control over your 401.
I get a hell of a lot more in equity every year than 5k...I would lose my ass based on the stock price.
I have a friend who was a store manager - hired by WM right out of B-School at FSU. Good money but ridiculous hours and hassles. He went back to Grad school and now works in a completely different field and says he’s poorer but yet richer in other ways.
Not the easiest type of job coming from outside...so many moving pieces going on at once plus learning the culture and 500 or more associates...not an easy job. High paying...most success I see comes from those that started off pushing carts or stocking shelves and worked their way up.
While I like trade joes it's not that way in Iowa City. It's always packed in there so getting through aisles is a huge pain as you're standing behind people all the time waiting for them to move on. And I hate shopping at stores that don't have self check out.
I go to the one in coralville also
Although when i get down there, i am down there when the store opens at 8 on a saturday.
I hate stepping foot in a store after 9am on the weekends. Hate having to stop at the store after work during the week.
Re: the no self checkouts at TJs. Ive never had to wait more than a couple mins in line. Definitetly get through checkout faster with the number of items i typically have at TJ than i would if i had to check them out myself
I wonder if they are really taking all of the Pepsico products off the shelves. That's a ton of products. Besides the pop you have..
All Gatorade products
All Lays chips, Cheetos, Doritos, Ruffles to name a few
Tropicana juices
Quaker Oats, all their cereals and snacks. An insane amount
Aunt Jemima
Rice a roni products
Starbucks bottled beverages
Lipton teas
This is just off the top of my head. It's a crazy amount of products.
All Gatorade products
All Lays chips, Cheetos, Doritos, Ruffles to name a few
Tropicana juices
Quaker Oats, all their cereals and snacks. An insane amount
Aunt Jemima
Rice a roni products
Starbucks bottled beverages
Lipton teas
This is just off the top of my head. It's a crazy amount of products.
The Frito delivery drivers are the sales people.
And most Pepsi drivers just drop of the product and the merchandisers put it away
The price gets jacked up because most of the people buying it are on WIC. 65% markup is a joke.
A supermarket chain pulled PepsiCo products over ‘shrinkflation’—now its biggest rival says Pepsi, Cheetos and Doritos are going nowhere
E.Leclerc’s chairman said he wouldn’t follow Carrefour’s “show of strength” by banning Cheetos and Doritos from his stores.
Pepsi says they actually pulled out of those stores.
www.freightwaves.com
Pepsi/Carrefour divide the latest among retail/CPG disputes
Tension between stores and suppliers has intensified amid commodity fluctuations.
www.freightwaves.com
