In a world of constant transformation, brands face the challenge of staying relevant in a highly competitive market. Changes in their strategies, products, and identities have ushered in a new era in their relationships with consumers, who now act as critical judges of every step companies take. A prime example of this is Costco, which has officially addressed rumors about its soda fountain offerings.
The wholesale giant has made its mark in many parts of the world. According to its 2023 report, Costco generated $176.6 billion in revenue from its U.S. operations. In Canada and through its international businesses, the company brought in $33 billion and $32.6 billion, respectively.
What’s Happening with Costco’s Soda Fountain?
Costco has officially confirmed a rumor that has been circulating for a month, stating that the wholesale club will switch its soda fountain offerings from Pepsi to Coca-Cola in its food courts, sparking excitement among some of its customers.
“This summer, we are converting our food court beverage fountain business back to Coca-Cola,” said Costco CEO Ron Vachris during the company’s annual shareholder meeting on Thursday.
Rumors about the change were first reported last month by Costco Insider.
“After more than a decade, Costco is switching back from Pepsi products to Coca-Cola products in its stores,” Costco Insider wrote in an Instagram post.
“The change will bring Coca-Cola, Coca-Cola Zero, and Diet Coke, as well as Sprite, replacing Starry.”
Reportedly, this new move will reverse a 2013 decision to replace Coca-Cola products with Pepsi.
According to Costco Insider, the 2013 switch was “a cost-saving measure to maintain their famous $1.50 hot dog and soda combo.”
Costco’s hot dog prices, often praised for remaining so affordable over the years, have apparently not changed since the 1980s.
Last year, CFO Gary Millerchip also confirmed that the price of Costco hot dogs is expected to stay the same, as reported by Fox Business at the time.
“I also want to confirm that the $1.50 price for hot dogs is secure,” Millerchip said during a quarterly earnings call in May of last year.
While some Pepsi fans expressed disappointment with the new switch, many customers shared their excitement about Coca-Cola returning to the food courts.
Matt West, editor of Costco Insider, told Fox News Digital last month that a survey conducted among followers revealed “87 percent preferred Coca-Cola over Pepsi,” indicating strong support for the change among wholesale club customers.
“This better not be an April Fools’ joke, God help me,” wrote one user in a Reddit thread last month.
“I didn’t even grab the drink cup when I got the hot dog! I’ll be thrilled if they choose Coca-Cola,” another Reddit user posted.
This is not the first time a brand has gone viral due to rumors about its products, especially on social media, where consumers are always ready to engage.
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