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As the impact of Pepsico's recent acquisitions of Tropicana, Gatorade and SoBe continues to unfold, retailers are facing a host of new concerns stemming from big beverage mergers, sub-category proliferation and the rapid growth of several upstart bprise in the industry, considering that most of the companies spend little or nothing on commercial advertising — although Red Bull has recently launched a major television advertising campaign.
Coca-Cola is hardly willing to hand over the lion's share of the non-carbonated beverage business. The world's largest bevera allowances, retailers who don't carry the product are missing out on a popular item.
"If you're a smaller chain or a single-store operator, there's probably more pressure, because the [slotting allowances] that largage market, which may include certain types of contracts and slotting fees.
Retailers, in the meantime, will need to pay close attention to trends in order to satisfy their customers.