Pepsi Cold Barrel Unit Takes Aim at C-stores

Can a P-O-P iceberg heat up soft-drink impulse sales in America's 66,000 convenience stores? Pepsi marketing managers will test that idea in October with the introduction of an innovative cold barrel for displaying single-serve bottles.Paul Van Slooten, manager of c-store retail strategy, Pepsi-Cola Co., Somers, N.Y., says the company's new Extra Capacity Cold Barrel, which uses an Iceberg Float device, will prove more convenient for both retailers and consumers.The cold-barrel design was created by Decision Point Marketing, Winston-Salem, N.C. As retail employees load the Pepsi barrel, ice and bottles rest on top of a blow-molded plastic float. As the ice melts and water collects at the bottom of the barrel, the float lifts like a buoy, raising the unmelted ice and bottles.Manufacturers of standard cold barrels recommend that they be drained at least three times a day, Van Slooten says. This means rolling the unit away from customers to an area where water can be removed. Pepsi recommends draining the new barrel just once every four days -- an 80 percent reduction in draining frequency, according to Van Slooten. As with traditional barrels, ice must be added to the Pepsi barrel every day. Because the float keeps the bottles above the melt-water level, consumers never have to reach through ice water for the next serving. Labels stay attached longer because the bottles are surrounded by relatively dry ice. The fact that bottles aren't submerged in stagnant water also addresses the sanitation concerns of some c-store chains, according to Van Slooten."Another issue is product rotation," he says. "Some c-stores are very good about rotating the bottles and cans, but it takes a lot of labor. When clerks reload a barrel, they don't always reload all the way to the bottom. Many times, a bottle that is at the bottom [of a standard barrel] stays at the bottom."Since Pepsi's float eventually lifts every bottle to the top, inventory is sold promptly. This is a competitive edge for Pepsi, which made freshness dating on soft drinks a marketing issue in the past year.The barrel's extra capacity also is a function of market demand. Four-out-of-five consumers now prefer soft drinks in bottles, Van Slooten says, so c-stores have been moving away from single-serve 12-ounce cans. According to the National Association of Convenience Stores, Alexandria, Va., soft drinks are the segment's fourth most important product line, accounting for 9.5 percent of revenue. Fully loaded, the Pepsi barrel can hold as many as 87 20-ounce bottles.In creating the fully insulated, injection-molded polypropylene barrel, Van Slooten says Pepsi "used the highest quality production method available. We needed solid construction so the float system would work properly."The barrel measures 25 inches in diameter and is 38 inches tall with casters. It has a durable, injection-molded, clear bubble lid and rests on five heavy-duty casters. Plastic ribs molded on the inside liner center the float as it moves up and down the barrel.With multiple holes, the Pepsi barrel's drain doesn't clog as easily as other barrels. A 36-inch, extra-large hose on the side of the barrel enables retail personnel to conveniently drain melt water into a bucket.The barrel is several inches taller than traditional barrels, Van Slooten notes, so the visual impact of its graphics are stronger. Interchangeable panels can carry promotional messages for Pepsi, Mountain Dew, Lipton Tea, Ocean Spray juices or All Sport sports drinks. A snap-on sign holder accommodates different sizes of cardboard pole signs.Bottlers can order Pepsi's Extra Capacity Barrel starting in October. Van Slooten says demand will determine production runs. He would not reveal the manufacturing cost of the new design, saying only that "it will be comparable to existing barrels in the marketplace."Decision Point Marketing will own the patent, which is pending, and will produce the barrel exclusively for Pepsi.

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