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Costco, Coca-Cola at odds over prices - Costco discontinues Coke products

Detroit, Michigan (CaymanMama.com) — Caffeine enthusiasts may need to find a new retailer for their favorite Coca-Cola products now that that the world’s largest soft drink maker and Costco, the nation’s largest wholesale club operator, are in a feud.

The fight over prices is putting the two companies at odds and shows that retailers and other product manufacturers are haggling over prices as shoppers remain hesitant to spend during this economic slowdown.

Negotiations between retailers and product makers often go on behind the scenes, but on occasion, the dispute goes public.

“Beneath this surface of harmony, it’s a dogfight out there,” Gerry Khermouch, editor of Beverage Business Insights, said Tuesday at a Coca-Cola investor meeting in Atlanta.

As most retailers are now trying to do, Costco aims to have more control over determining prices and has made that known by posting signs on store shelves and notices on its Web site.

“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,” a message on the company’s Web site read.

Costco, based in Issaquah, Wash., doesn’t plan to remove Coca-Cola favorites including Coke and Diet Coke from their shelves, though they will not restock those products “until the matter is resolved,” as per the message on its site.

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