Question

if pepsi has been shipping direct to walmarts warehouse all along, why aren't its bottlers upset?

Answer 1

These bottlers should raise their issues and concern with Pepsi management and ask to protect their future business relationships. As this Wal-Mart plan will definitely negatively influence their business. They should try to increase their market reach with more benefits offerings than Wal-Mart’s offerings. They should negotiate for increased profit margin to compensate the loss due to such activities of Pepsi and Wal-Mart. Any possibility of loss to bottlers profit and market share must be brought against the Pepsi's board and ask for a mutual beneficial resolution. It will be better to take some control mechanism related to refill of bottling and cut the production rate. It might influence the Pepsi’s such decisions.