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Hi,
We've spent several years creating and refining our concept and one of selling points is no hfcs, which means that we will only be selling sodas with pure cane sugar. Here's the problem; their are dozens of companies that sell canned soda like this, but we can't find any vendors that sell pure can sugar via a fountain system and it's not that practical to have a fast food joint and only sell cans and not have fountain drinks. Any help would be greatly appreciated. Thanks
The one that immediately comes to mind is Buffalo Rock. Distribution is a lot more complex, and frankly you were foolish not to do some basic fact checking early on.
I'll quickly cover the very basics. The two giants - Coke and Pepsi - are in constant battle with each other for market share. Many if not most of the fast food places, theatres, and convenience stores that have fountains do not own the equipment. The equipment is supplied as part of the larger contract for the soft drink. An instance of a contract might be:
Joe Theatre Company has 24 locations. Every three years, it courts Pepsi and Coke, based on the volume of sales over the past period. At that point, they compete to be the supplier for the next three years. The contract may be done directly (national contract) or through the local bottler. National contracts are only for the big users and are much better than a local contract. The theatre company settles on Pepsi, which then removes the Coke equipment, puts in Pepsi equipment and signage, possibly supplies the drink cups, and/or supplies an advertising budget that is in co-op with the theatre. Pepsi might pay for on-screen ads at a substantial rate and so on. Because of anti-monopoly laws, ONE - and only one - tap on a fountain must be open to a competitor. Coke won't use the tap in a Pepsi place of business, Pepsi won't use the tap in the Coke place. Typically, the tap gets used by one of the second tier soft drink suppliers. Competition is not as important to the business on that tap, as there is less money to be made. That means that whatever goes in has to be a decently selling product with a fan base. In the south, it is a no brainer for Dr. Pepper, and you would pry that one out of the hot dead hands of southerners.
Your product, as a mom-n-(soda)pop, is simply not in the same league, doesn't have the millions to even gain a foothold, and has a snowball's chance of hitting one of those rare available taps unless you make a sweetheart deal with the business owner, likely at a severe loss to you.
IIRC, Buffalo Rock puts together bib for a few minor players. If you don't know what bib is, you have no business investing time or money until you have a stronger knowledge.
The one that immediately comes to mind is Buffalo Rock. Distribution is a lot more complex, and frankly you were foolish not to do some basic fact checking early on.
I'll quickly cover the very basics. The two giants - Coke and Pepsi - are in constant battle with each other for market share. Many if not most of the fast food places, theatres, and convenience stores that have fountains do not own the equipment. The equipment is supplied as part of the larger contract for the soft drink. An instance of a contract might be:
Joe Theatre Company has 24 locations. Every three years, it courts Pepsi and Coke, based on the volume of sales over the past period. At that point, they compete to be the supplier for the next three years. The contract may be done directly (national contract) or through the local bottler. National contracts are only for the big users and are much better than a local contract. The theatre company settles on Pepsi, which then removes the Coke equipment, puts in Pepsi equipment and signage, possibly supplies the drink cups, and/or supplies an advertising budget that is in co-op with the theatre. Pepsi might pay for on-screen ads at a substantial rate and so on. Because of anti-monopoly laws, ONE - and only one - tap on a fountain must be open to a competitor. Coke won't use the tap in a Pepsi place of business, Pepsi won't use the tap in the Coke place. Typically, the tap gets used by one of the second tier soft drink suppliers. Competition is not as important to the business on that tap, as there is less money to be made. That means that whatever goes in has to be a decently selling product with a fan base. In the south, it is a no brainer for Dr. Pepper, and you would pry that one out of the hot dead hands of southerners.
Your product, as a mom-n-(soda)pop, is simply not in the same league, doesn't have the millions to even gain a foothold, and has a snowball's chance of hitting one of those rare available taps unless you make a sweetheart deal with the business owner, likely at a severe loss to you.
IIRC, Buffalo Rock puts together bib for a few minor players. If you don't know what bib is, you have no business investing time or money until you have a stronger knowledge.
Folks, the above post is Exhibit A. of a smug condescending post. How insecure must someone be to have to insult perfect strangers? Well, you know what's even worse than a smug, condescending know it all? A smug condescending know it all who happens to be WRONG!!! Read it and Weep Henry Garbanzo Bean.
Couldnt your product work in any fountain system? You mean you just have not found anyone willing to market your product in a fountain system. Well have you thought about maybe buying a few systems yourself, and try to sell your product in a fountain system by yourself, to say small restaurants. At least here in Manhattan, there are lots of places advertising natural, organic, pure, fresh, etc to the hipster, yuppy crowd. I am sure they would not mind adding a fountain drink that is natural.
Many years ago, I might have become upset at being called smug or condescending when I pointed out the way that soft drink business is done, from years of experience.
A few years later, I might have looked at the Boylan link, to a SPECIALTY restaurant - NOT mainstream as "we can't find any vendors that sell pure can sugar via a fountain system and it's not that practical to have a fast food joint" implies and think that the poster doesn't know the difference between fast food and specialty restaurants.
Today, I look and I see that some posters have no concept on how to communicate.
Take the first line ALONE:
We've spent several years creating and refining our concept and one of selling points is no hfcs, which means that we will only be selling sodas with pure cane sugar.
Honestly, would you consider that the person who wrote that had developed a line of soft drinks, or was running a specialty restaurant? The points brought forward are no hfcs (which I applaud) and sodas. There is NO qualifier on what the concept is. For all the reader who comes in cold knows, this is a gas station for yuppies on the Oregon Coast that provides electric car recharge facilities and a little snack bar.
Smug? It must be that you serve eggs, because you have it all over your face, taking an informative response and bringing back an ad hom attack. By the way, the moniker is HARRY, not Henry, but I'm not surprised you didn't get it right...
Couldnt your product work in any fountain system? You mean you just have not found anyone willing to market your product in a fountain system. Well have you thought about maybe buying a few systems yourself, and try to sell your product in a fountain system by yourself, to say small restaurants. At least here in Manhattan, there are lots of places advertising natural, organic, pure, fresh, etc to the hipster, yuppy crowd. I am sure they would not mind adding a fountain drink that is natural.
I'm sorry my op wasn't clear, my apologies. We're looking to possibly open a hamburger joint and one of our "themes" is no high fructose corn syrup; HFCS. The problem is, it's very difficult to find a distributor that will provide fountain soda that is made with pure cane sugar, as Coke and Pepsi have a virtual monopoly on the market. Thankfully, after a lot of research, we found one.
Many years ago, I might have become upset at being called smug or condescending when I pointed out the way that soft drink business is done, from years of experience.
A few years later, I might have looked at the Boylan link, to a SPECIALTY restaurant - NOT mainstream as "we can't find any vendors that sell pure can sugar via a fountain system and it's not that practical to have a fast food joint" implies and think that the poster doesn't know the difference between fast food and specialty restaurants.
Today, I look and I see that some posters have no concept on how to communicate.
Take the first line ALONE:
We've spent several years creating and refining our concept and one of selling points is no hfcs, which means that we will only be selling sodas with pure cane sugar.
Honestly, would you consider that the person who wrote that had developed a line of soft drinks, or was running a specialty restaurant? The points brought forward are no hfcs (which I applaud) and sodas. There is NO qualifier on what the concept is. For all the reader who comes in cold knows, this is a gas station for yuppies on the Oregon Coast that provides electric car recharge facilities and a little snack bar.
Smug? It must be that you serve eggs, because you have it all over your face, taking an informative response and bringing back an ad hom attack. By the way, the moniker is HARRY, not Henry, but I'm not surprised you didn't get it right...
Bottom line, Henry Garbanzo Bean: you were wrong.
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