Product Overview

In the first quarter of 1993, Coca-Cola's share of mass-merchandise soft-drink sales fell 6.6%, while private-label soft drinks' shares in the same channel rose 16.8%. Much of this increase reflected the success of the Cott Corporation, which had achieved a 10% share in the mass-merchandise channel by selling private-label and store-brand soft drinks to Wal-Mart and other U.S. retailers. In a March 1993 interview, Cott CEO Gerald Pencer stated: "We make a product that is at least as good as, if not better than, Coke or Pepsi." He expected Cott's sales to double in the next year. Coca-Cola executives must decide how to respond to Cott's initiatives.