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Coke FLO Program


SchligVend

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I spoke with coke yesterday and they informed me that the FLO program the same program that gives out the leased machines that vendors use will be discontinued at the end of your current contracts, they explained to me that no renewals will be granted and no new vendors will be accepted.

 

Anyone else hear about this?

 

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What is the FLO program, Full Line Operator?  Are they recalling all of their machines?  I never knew Coke or Pepsi to have finite contract lengths when I was a vendor years ago (heck, they could never keep track of where the machines were back then), especially for long term vendors (of many years) but this seems to be the trend in some markets.  It's hard to believe that Coke is prepared to lose so much business at one time but they have so much money it might not mean anything to them.  This is still the most competitive soda market in the country and I don't see how this helps them since the whole idea was to get as many Coke signs out in front of potential customers for brainwashing purposes, er, advertising purposes. 

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Yes the FLO program is Full Line operator its the program that allows vendors to get bottler machines from them directly.    They explained to me yesterday that the corporate offices sent the order to all regions that have this program and to shut it down since they are loosing their golpher on the repairs, loosing track of machines, vendors not keeping up with purchases.

 

It is a little upsetting since this program is great for those bigger or nice accounts that need multiple machines or new machines.

 

I am just curious to see what they are gonna do,  Are they gonna pull all machines from current accounts when contracts are up or maybe just leave them there and tell all vendors no repairs no new machines.....

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This is sounding like what's being terminated is the policy where they would drop multiple machines off at a vendors warehouse for them to install as needed.  I was always surprised that any bottler would blindly trust a vendor by giving them multiple machines with no way to know where they actually went.  They probably thought this was a great idea in the beginning because Coke wouldn't have to make a few hundred installs and they probably thought vendors would be forthcoming with where the machines got placed.  Noooo, that's not likely to happen.

 

If they were smart, they would cancel that program right now and recall only the machines that they can't verify the location of or aren't located at all.  Put the onus on the vendor to report the location data or return the machine.  I suppose giving a notice window gives vendors time to report the locations and/or get the rest of their machines out.  I wonder how many vendors have sat on machines that aren't located which are then causing the vendor's product purchase requirements to go up on idle equipment?  That would be silly.

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Pepsi hasn't taken in new vendors in years I hear, I haven't tried to fight with them in 2 years but maybe I will call them Monday and harass them a little.

Phoenix Pepsi is still taking new vendors. The lady in charge of all leased equipment here locally is named Sue, (not sure of her last name). I met with a few months ago about leasing equipment for a local CC college. She can get you set up with shelving from fritolay and coolers for your micro markets.

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With Pepsi in Kansas and Oklahoma I know once a year 3rd party has to verify vendors. They call it asset verification. Pain in tush for vendor. I don't think there is a end date on contracts. And I don't think Pepsi or Coke is going to discontinue FLO entirely for everyone. Any large vendor like Canteen or ARA is going to weigh heavily on the bottlers. Wishful thinking! Canteen isn't going to give back 1,000 of vendors. A unnamed bottlers  has done some shenanigans in the past that I thought was underhanded.  Back when Pepsi and Coke signed the contract with the federal government that they would no longer sell syrup based soda in the schools they quite bidding on the schools. Instead they set back and let the big guy bid on the accounts because they could still sell the syrup based soda's at schools. Then they sold 501 E's at the schools to the large vendor for $1. This allowed them to brag they removed all syrup based products from our schools. It was a gold mine for the big guy and screwed the little vendor. 

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That's Sue Saraceno who used to work for Coke herself years ago.

You are correct Randy.

 

She was very open to working with me, very flexible as far as case quantities and time frames.

While she was at Coke the now owners of Ace vending (Huge company) taught her a lot of the things, as im sure you know they all worked at coke before splitting off.

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Hey take a look at 7up and Dr pepper. In the Atlanta area a lot of vendors are picking up the coke assets and replacing them with new 7up machines. The coke dn 500 are not holding up a lot of problems with harnesses  and the prices on RC 7up AW root beer and sundrop are about 2 dollars a case cheaper than coke and pepsi.

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