Coca Cola Attacks Reading Terminal Market

[rlibkind]

The Philadelphia Coca Cola Bottling Co. late this spring launched an all-out assault to brand the Reading Terminal Market market as a Coca Cola fiefdom. It may well be the biggest threat to the market since the bankrupt Reading Railroad sought to shut down the city's historic market nearly 30 years ago.

Here's what RTM Manager Paul Steinke wrote in a June 9 update to market tenants:

In recent weeks representatives of the Philadelphia Coca Cola Bottling Co. have been discussing various ideas for inserting the Coke brand into individual merchant stores through signage, menu boards, seat cushions, clocks and other means. There is nothing wrong with a beverage company pitching their products and services to a merchant. But we cannot go overborad in allowing them to splash their brand identity all over the Market. We are a collection of small independent businesses and we take that distinction seriously. Let's not permit Coke to seduce us into unduly compromising our integrity. If Coke or any other outside company is talking to you about renovations to your store, please discuss it with me before you agree to any of their proposals. Remember, as Landlord we have the right of refusal of any tenant renovations that we believe may be out of character with the Market, which is a precious and fragile historic resource. We all need to take that role seriously in order to preserve the Market's integrity and character.

That's strong language. And for good reason: plastering the market with the Coke label beyond the usual fountain dispensers and refrigerated cases would turn the market into one gigantic billboard.

I urge all who care about the market to let Philadelphia Coca Cola Bottling Co. and it's corporate parent, Coca Cola Enterprises, know that such a campaign is unwelcome and unwanted:

Philadelphia Coca Cola Bottling Co.

info@phillycoke.com

Phone: 888.551.6800

Coca Cola Enterprises

Corporate Offices

Coca-Cola Enterprises Inc.

2500 Windy Ridge Parkway

Atlanta, GA 30339

USA

770-989-3000

Ombudsman

Coca-Cola Enterprises Inc.

2300 Windy Ridge Parkway, Suite 145 South

Atlanta, GA 30339-5677

888-272-COKE (2653) or

[JasonZ]

Well said, Bob L and Paul S!!

We'll do our part also. As a shareholder through a number of mutual funds, I may write to Investor Relations and sensitize them to the issue ...

Regards,

JasonZ

Edited June 16, 2007 by JasonZ (log)

[hathor]

What an odd idea, to combine a corporate icon with small farmers. Not as odd as a dry cleaner/gun merchant, but it's close.

You have to wonder at what meeting this ever sounded like a good idea.

[mattohara]

i can see it. it's the Norman Rockwell version of coca-cola. country bumpkins chewing on straw come to the city in bare feet and overalls to sell their delicious homemade food in the old-fashioned market. while drinking bottles of coca-cola.

[Andrew Fenton]

What an odd idea, to combine a corporate icon with small farmers.  Not as odd as a dry cleaner/gun merchant, but it's close.

Presumably the Coke stuff would be connected with restaurants, and not produce vendors? At least, that's what menu boards, seat cushions and clocks imply to me. I don't know where OK Lee or Downtown Cheese or whoever would even put Coke materials...

[mrbigjas]

i don't mean to mess with everyone's righteous anger or anything, but i don't see that much of a difference between what coke's doing now and what pepsi did there several years ago.

voices were raised in protest then, too (i seem to remember a rick nichols column about it maybe?), and still most vendors have a giant pepsi branded soda fountain and whatnot in their stall. anyone have an inquirer account that can look it up?

[rlibkind]

Coca-Cola has backed off.

I spoke with two Coke reps this week (neither of whom wanted to be identified in any way shape or form) who confirmed that while Coke did plan to make the push I outlined, when they learned of RTM management's objections, they canned their plans. They still hope to do sandwich-and-drink type promotions with individual merchants, and will continue to supply refrigerated cases and beverage dispensers with their logo, but you won't find the Coke logo or representations of the classic bottle plastered all over the RTM. (One idea they proposed, and was shot down by the RTM, was to put new seat cushions on the the stools at Golden Bowl, Carmen's and perhaps other eateries in which a silhouette of a coke bottle would appear. Nothing like shoving a bottle up your . . . )

I made my calls to Philadelphia Coca-Cola Bottling Monday and Wednesday. Funny, but later RTM Manager Paul Steinke got a call from the bottler's president assuring him that Coke will abide by his wishes and refrain from the more visible push. I'm guessing my inquiry drew their attention to Paul's publicly posting his newsletter to merchants.

Let it not be said that Coke isn't sensitive to the preferences of their various markets. They wouldn't have become as successful a company as they are otherwise.

BTW, don't write, call or e-mail Coca-Cola Enterprises on this issue. It turns out that while CCE does own a number of bottling companies, the Philadelphia company (formerly a minority-owned business in which Julius Erving was initially involved and was led by J. Bruce Llewellyn) is not one of them. The local bottler was sold to the parent Coca-Cola Company in Atlanta (the syrup maker). They apparently have shifted strategic direction and seek to have greater control over their products so are now acquiring bottlers. For the parent company's Bottlers Investment Group, formed in 2006 to bring company-owned bottling units under a single coordinated management, Philadelphia Coke is its first major bottling acquisition in the US (most of their bottlers are overseas) and they are using it as a test, with strenuous multiple marketing efforts.