ExclusiveJulian Hunt News that Coca-Cola ­ one of the country's biggest grocery brands ­ is to embark on a massive price cutting campaign in all channels from next week has enraged the trade. Companies contacted by The Grocer are furious that Coca-Cola Enterprises is trying to cut prices ­ and their margins ­ and say it is a desperate attempt to drive volumes in the UK. The initiative kicks off on January 29, when Coke's new price is due to appear in all trade channels ­ from supermarkets to independent impulse outlets. But we have been told there is widespread resistance to the idea of Coke being sold with the lowest possible pricetag. Some companies are still negotiating with the soft drinks giant. So sensitive are these negotiations that nobody will reveal the pricepoint at which Coke could in future be sold. Robert Ireland, Coca-Cola Enterprises' sales and marketing director, would not be drawn on specifics. He told us: "We operate in a highly competitive sector where the pricing structure is designed to benefit the retailer and allow the wholesaler to compete more effectively. We believe competition is good." But one retailer told us: "Nobody has been singled out for special treatment. But everybody is right to be upset and angry." Another trader said: "They are trying to crash the market in a way that will undermine the whole soft drinks sector." And one wholesaler said: "Their policy is doomed to failure and will make life much easier for Coke's rivals." Even though feelings are clearly running high, Coke insiders insist the initiative has been well received and generated good feedback from the trade ­ with the exception of some buying groups. {{NEWS }}

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