Why do companies like Coca-Cola and Pepsi and such make cheaper Colas for Kroger, Walmart, etc?

Question

...but sell them under a different name (Sam's Choice, Kroger brand, etc.)?

Answer 1

My thought is that the producers are using excess manufacturing capacity to make at least some profit. If you have room to produce more but don't want to flood the market with your product, you could produce Sam's Choice for someone else, produce to capacity and make a bit more profit.

Answer 2

I'm not sure they do. I think those generic brands are bottled by others. It would be really stupid of Coke and Pepsi to take a chance on hurting their brands. Most big name brand companies don't copack against their popular brands.
But if they do its because they have spare capacity on their lines and can't afford to have them sit idle. So they will keep them running even if they don't make a ton of money off them. At least they keep their people employed and meet their overhead costs. I know this because I worked for a big food company.
Think of it like the automobile manufactures who must run their plants even if they only sell the cars at cost to the rental companies.
PhD Food Chemistry and Nutrition

Answer 3

Read what it says on the can. If it doesn't say Coca-Cola or Pepsi, they had nothing to do with it. If they did and their name is nowhere in sight, they would have to deal with liability issues if lawsuits arise. Big companies like Coca-Cola and Pepsi have very good and very expensive lawyers who know what they're doing. Because these companies own thousands of other products, they don't want to defect the taste (especially of their number one product: soda).

Pepsi owns Frito-Lay (Doritos) chips, Quaker Oatmeal, and Tropicana juices to name a few. Coca-Cola owns Fanta drinks, Dannon yogurt, and Minute Maid drinks to name a few.

Wal-Mart has their own factories with similar equipments and slightly different ingredients to make their products.

Answer 4

I am also not sure that they make the cheaper colas, but I know Coca-Cola makes most of their money off of bottling, not the actual drink, so I wouldn't be surprised if the private brands had to use Coca-Cola to bottle their sodas. Also, having cheaper colas that are inferior could make more money for the bigger companies because of bottling but also because it expands the market for cola.

Answer 5

Pepsi

Answer 6

all private label colas are made by the big companies, they are made by smaller companies and just put the private label brand on them, that is why most of them do not taste very good.

Answer 7

Most of off brands are made by Kalil or off brand manufactures

Answer 8

Bulk Bulk Bulk when they buy bulk they get a major break in price and also they make deals for labeling.

Answer 9

just to attract customers and make money


i bet you didnt know this fact

coca cola use to (when it berly came out) put coke (cocain)in their drink

Answer 10

Because it sells and they still make money.