Did anyone else know that Coca Cola gives Disneyland its products for free?

[calsig31]

Re: Did anyone else know that Coca Cola gives Disneyland its products for free?

if coke "gave away" the product, I'm sure quite a few lawsuits would be filed by the other mfr's (Pepsi, 7UP/Dr.Pepper), due to them giving it away would be unfair competition... considered to be "predatory" to harm the competition.

Even if this rumor about Coke giving their syrup away for free, I don't see how that would be unfair competition. The other companies could have made a similar deal to give away their products for free and then maybe we would have Pepsi or 7up Corner.

[DLFan1995]

Re: Did anyone else know that Coca Cola gives Disneyland its products for free?

Let's see here, so Coke might provide 3 cents of syrup for each drink served at Disneyland, 40,000 guests a day, each drink on average two drinks, that would be 120,000 cents a day! Which works out to $1,200 dollars a day, or maybe a cool $400,000 a year. (Using your numbers). BTW, if Disney makes $3.00 off of each Coke after you factor in labor and such costs, that would be about $40 million American dollars a year.

Probably wouldn't even cover the cost of having Coke corner named in their honor, to say nothing of guests who want Pepsi and are . . . inconvenienced.

It is more likely that Coke pays for the syrup (trivial?), and also writes Mickey a check each year too . . . or so to speak.

I would speculate that Coke pays Disney a large sum to be the "Official Disneyland Drink". That sponsorship deal could have been worked out to be less cash if they provided syrup free. Beyond that, Coke probably does charge Disney for the cups. But, even with custom graphics, I don't see them costing more than $.50 each.

So, the overall drink cost (including ice, CM & equipment overhead) is still a very small fraction of what they charge.

[JerrodDRagon]

Re: Did anyone else know that Coca Cola gives Disneyland its products for free?

Even if this rumor about Coke giving their syrup away for free, I don't see how that would be unfair competition. The other companies could have made a similar deal to give away their products for free and then maybe we would have Pepsi or 7up Corner.

I guess it depends on the market because I always ask why when say a video game comes out its always 60 bucks...why not be the ones who make it 55 bucks and get EVERYONE to buy it there....and the reason is Best Buy would get in trouble for selling the game at a cheaper price then everyone else...but I guess in Theme Parks the rules are different and you can just get products for free and sell them for what ever profit Disney wants to make

[Timicus]

Re: Did anyone else know that Coca Cola gives Disneyland its products for free?

I guess it depends on the market because I always ask why when say a video game comes out its always 60 bucks...why not be the ones who make it 55 bucks and get EVERYONE to buy it there....and the reason is Best Buy would get in trouble for selling the game at a cheaper price then everyone else...

Just to let you know, the bolded part of your statement is incorrect. Best Buy (or any other retail chain) cannot be told what to charge. There is what is called the MSRP, Manufactures Suggested Retail Price. This is the price that the creator of a product suggest that the item is sold for. Most retailers follow the pricing but are not bound by law (some may have a signed agreement but that is another issue). If retailers were required to sell an item priced based on the "say so" of a manufacturer, we get close to price fixing.

Go into a Best Buy, Target, Wal*Mart, or any retailer that sells the same item, price compare and see that a retailer does not get in trouble for selling the game at a cheaper price.

[pinkertonfloyd]

Re: Did anyone else know that Coca Cola gives Disneyland its products for free?

COMPANY NEWS; Coke-Disney Pact


AP
Published: January 26, 1990

The Coca-Cola Company and the Walt Disney Company signed a 15-year marketing agreement, extending an association that dates to 1942. The deal calls for Coke products to be available exclusively in all Disney theme parks. Coca-Cola will also have exclusive rights to use certain Disney characters in advertising. Terms of the deal were not disclosed.

And :

Pepsi Gets 2nd Contract From Disney


Beverages: Rival Coke, which dominates the soft drink market, says the cost of obtaining the deal would not have justified the expense.


April 15, 1998|DARYL STRICKLAND | TIMES STAFF WRITER


Fighting to overcome Coca-Cola Co.'s widening lead, PepsiCo inked its second contract in as many months with Walt Disney Co., agreeing Tuesday to become the exclusive supplier for several new Disney entertainment ventures.
Pepsi-made beverages will be the sole soft drinks poured at Club Disney children's play sites, DisneyQuest interactive entertainment centers and ESPN Zone restaurants.



The new contract, described only as "a multiyear deal," is not expected to increase the sales of Pepsi, Diet Pepsi and Slice right away. But analysts said the deal's value will be in linking Pepsi products to Disney's marketing muscle, adding a new dimension to the cola maker's efforts to gain ground on Coca-Cola.
"These are marketing-driven transactions," said John Sicher, editor of Beverage Digest, a trade publication. "It's significant in the sense that these Disney properties are likely to be increasingly valuable as time goes on and it presents a positive marketing experience for Pepsi."
Indeed, Disney Regional Entertainment plans to expand the three concepts nationally, opening more than 100 locations over the next five years.
New York-based Pepsi, which spun off its $11-billion restaurant division last year, is bidding for the rights to sell soft drinks in popular sports venues and restaurants.
Last month, Disney broke a 43-year exclusive partnership with Coke, awarding Pepsi a contract as the sole supplier at Edison International Field of Anaheim, home of the Disney-owned Anaheim Angels.
Pepsi also has soft-drink contracts with the Los Angeles Kings and Los Angeles Lakers at the Great Western Forum, Universal studios and the California Speedway in Fontana.
But Coke, the world's largest soft drink maker, still is sole supplier to Disney's parks. It also holds the contract at the Anaheim Mighty Ducks' at the Arrowhead Pond, a Disney-owned franchise.
Coke widened its domestic lead over Pepsi in the $53-billion soft-drink market by nearly 1% last year, according to a survey by Beverage Digest and Davenport & Co. Overall, the poll placed Coke ahead of Pepsi by 12.1%, the biggest lead registered by the Atlanta-based company in more than 20 years.
But Coke has backed away from some agreements, including the one that Pepsi announced Tuesday, believing that the costs outweighed the return.
"In this case, what we [would have] got out of it didn't justify the investment," said Coke spokesman Scott Jacobson.
Disney also announced that its first DisneyQuest will open in this summer in Orlando and another next year in Chicago.