In a move that many are calling ‘a reversal of the cliche’ Costco, the warehouse retail giant, has announced that it is switching it’s food court fountain drinks from Pepsi products to Coca-Cola products. While this may be shocking news to some regular customers, there are some very good reasons behind the unexpected shift. Yair Ben-Dor has more.
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00:00In a move that many are calling a reversal of the cliche, Costco, the warehouse retail giant,
00:06has announced that it is switching its food court fountain drinks from Pepsi products to Coca-Cola products.
00:12While this may be shocking news to some regular customers,
00:16there are some very good reasons behind the unexpected shift.
00:20According to Press Citizen, the company switched from Coca-Cola to Pepsi products in its food courts in 2013
00:27to maintain the price of its tentpole $1.50 hot dog combo.
00:32For many, the shopping experience at Costco includes dining,
00:36and as such, Costco CFO Gary Millerchip said in 2024 that the $1.50 hot dog price is safe.
00:44The Hill reports Costco has repeatedly reassured customers over the last few years
00:49that it would not raise the price of its hot dog and soda combo,
00:53even as consumer prices rose and membership fees climbed.
00:57A key point of discussion in recent shareholder meetings, but not the only big decision made that day.
01:03Costco shareholders were asked to reject a proposal
01:07involving the company's diversity, equity, and inclusion policies ahead of the annual meeting.
01:13Over 98% of shares voted against the proposal,
01:17citing that DEI is part of the reason they succeed in business
01:21and that they, just as much as the customers, feel it's an important value to uphold.