According to a Reuters article posted Friday April 17 titled “Wal-Mart seen cutting bottled water brand space” Walmart may have decreased the shelf space dedicated to national brand bottled water, distributed Coke and Pepsi.
They report that:
Bill Pecoriello of ConsumerEdge Research said he believes that beginning in April, Wal-Mart cut shelf space nationwide for Pepsi’s Aquafina water and Coke’s Dasani water by about 50 percent each as the world’s largest retailer pushes lower-priced brands, including its own private label water.
Wal-Mart could even remove Aquafina and Dasani from its stores altogether, he said.
Pecoriello, who founded ConsumerEdge after leaving Morgan Stanley, said private label soft drink maker Cott Corp is likely picking up some of the space, along with other low-priced regional brands.
This would be an interesting turn of events considering Walmart announced in January that they were ending their exclusive relationship with Cott Beverage. In addition to that William S. Simon, executive vice president and chief marketing officer of Walmart was quoted in Supermarket News saying:
“But there are no plans to replace shelf space [for national brands] with space for Great Value products.”
So the truth of the matter will be determined by the shelf space allocated to national brands and Private Brands.
Who do you think is right?