coca cola amatil: a tale of two stories, page-15

Fat Bloater,

Again your comment doesn't have much relevance. Think about it like this. Perhaps you run a small corner store. You have been buying your coke direct from CCL, but you soon realise that it's cheaper to buy it from Woolworths. So instead of dealing direct with CCL you start buying it from the supermarket which gives you a bigger profit when you ultimately sell it retail in your store.

As a CCL shareholder, this 'model' is preferable. From CCL's perspective, they need to hire less salesman, they have fewer accounts to maintain which means less admin staff, the accounts they have (i.e. Woolworths, Coles, IGA etc) presumably have higher credit ratings than your small corner store and are less likely to miss payments which affect CCL's cash flow. Then there is the cost to run the trucks and pay the drivers who have to make a special delivery to your small corner store just so they can drop off a few cases. Meanwhile of course, Woolworths is placing some bulk order for a few thousand cases and delivery is most likely to a central Woolworths warehouse.

At the same time, you have to drive your car and spend your time going to your local supermarket. You have to pay your cash upfront to purchase your inventory.

Personally, I am ok with that scenario.  

I think what you are trying to say though, is this lack of service to smaller retailers coupled with the large price discounting given to large retailers is ultimately bad for CCL in the long run. If they continue this trend, then the ubiquitous distribution network which is supported by all those small businesses across the country will slowly start getting weaker.

And also, I drank a coke today...and I will most likely drink one tomorrow and each day for the rest of the week. So now you know of at least 1 person who still drinks the stuff.