Coca-Cola Enterprises' efforts to target new sectors of the soft drinks market is in danger of being stopped in its tracks because of an ongoing row with wholesalers. The dispute stems from CCE's decision to withdraw promotional support in the sector for its flagship brand and instead focus all activity on lower prices (The Grocer, February 3, p6). The new terms have been rejected by wholesalers who have condemned them as "hostile and unwanted". And in a letter to The Grocer this week, one leading player says the activity being run by CCE in the multiple sector makes a "mockery of their pretence to support the wholesale sector" (see p18). Now some of the top players in the sector have told CCE that they will not support its new product development programme. CCE announced last month it was targeting younger, trendier sectors of the market with the launch of Alive fruit drink, Fanta Icy Lemon and Powerade. A boycott in the wholesale sector would be a blow because it would restrict distribution in the impulse channel ­ one of the most important for soft drinks suppliers. Mike McGee, md of the Landmark buying group, said: "Coke has new products coming up and we will not be taking them. They will not be listed or stocked in Landmark." And Booker's trading director Shaun Birrell said: "We can't comment on other businesses. However, Booker has received new terms from Coca-Cola. We have taken the view that it would be foolish to change ranges and categories until we have assessed the full impact of this new set of terms. This may take up to three months to wash through the system." Other wholesalers are also believed to be refusing to list the drinks. A spokesman for CCE said: "We don't discuss our customer relationships with anyone except our individual customers." {{NEWS }}

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