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How can PepsiCo let this happen with their own product ? [Local flavours exportation]

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Jeff Noel

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In Québec, Canada, PepsiCo released Crush Cream Soda probably 30-40 years ago.
There's a guy that started buying 24-packs and selling them to American rappers for $200/pack. It probably costs him CA$30-40 max. per pack.

These single units cost about CA$2.49 each and are available everywhere in Québec.



He also started to sell products that were discontinued in specific areas, but are still available elsewhere in the world (like some Fanta drinks).

The Plug Of Your Plug‍♂ (@raredrank_co) • Instagram photos and videos
Crush Clear Cream Soda

I believe the guy is not an official reseller of PepsiCo... but why isn't the brand launching the product on the American territory with a premium price ?

Aren't there any legal implications with doing that kind of exportation when the mother brand discontinued the product in a specific area ?

It's definitely working well... and it's inspiring me. Maple Syrup would be a billion dollars business if there weren't laws and regulation and quotas around it.
 

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minivanman

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I believe as long as he does not use their logo on any of his marketing, there is nothing they can do. He can call it by name but he can not use their logo. I would think if he started advertising with the name PepsiCo's Crush Cream Soda and used the name heavily in his marketing, but as long as he says something like, 24 pack of Crush Cream Soda $$$$ they can't really do much about it. Kind of like I can say Whirlpool Cabrio but I don't use Whirlpool's logo. We have to explain what we are selling.

Kind of like selling FREE sauces from fast food joints. Not against the law.
 

Kak

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No. This isn't illegal.

What this boils down to is an unauthorized retailer situation. Not trademark infringement or anything of the like.

Costco, for example, makes a habit of selling lots of things as an unauthorized retailer.

This is quite literally the Pepsi Co product. Not a nock off. Not a different product trying to ride Pepsi's coat tails.

There is even now legal presidence in support of "gray market."

https://www.washingtonpost.com/news/volokh-conspiracy/wp/2015/01/21/you-bought-it-you-can-re-sell-it-costco-can-keep-selling-gray-market-omega-watches-at-a-discount-without-copyright-liability/?utm_term=.5e2286a81cba
 
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G-Man

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but why isn't the brand launching the product on the American territory with a premium price ?
Because no one with the juice to make things happen at a company as big as Pepsi wants to run a low revenue division. Sure there's profit to be made, but are you going to build a billion dollar line out of selling thousands of skus onesie twosie? Probably not. You're judged at a company like that on top line, which means that managers are willing to leave money on the table if the top line revenue generated by an activity isn't high enough.

As normal people that are always looking for opportunities, we should be happy about this, because if that weren't the case, big corporations would be the only game in town.

There is even now legal presidence in support of "gray market."
From the standpoint of the consumer the grey market is a boon. Virtually every time you buy a great deal on a branded product from ebay daily deals or amazon deals it's someone making a grey market arbitrage play. Occasionally overstock, but any time you see a premium item I almost guarantee its grey market. If you can't tell, yeah, I'm a fan of the grey market.
 

Kak

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Because no one with the juice to make things happen at a company as big as Pepsi wants to run a low revenue division. Sure there's profit to be made, but are you going to build a billion dollar line out of selling thousands of skus onesie twosie? Probably not. You're judged at a company like that on top line, which means that managers are willing to leave money on the table if the top line revenue generated by an activity isn't high enough.

As normal people that are always looking for opportunities, we should be happy about this, because if that weren't the case, big corporations would be the only game in town.


From the standpoint of the consumer the grey market is a boon. Virtually every time you buy a great deal on a branded product from ebay daily deals or amazon deals it's someone making a grey market arbitrage play. Occasionally overstock, but any time you see a premium item I almost guarantee its grey market. If you can't tell, yeah, I'm a fan of the grey market.
Hmm... Could this be a micro example of how free competion is still better than protectionism? I think so! Interesting stumbling backwards into that one!
 

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I think you guys are missing the most valuable lesson out of all of this. He calls it a "rare drank". What we all need now is to axe the right kestions and get us some face tattoos and grills in da hood.

Didn't someone on the forum tell a story about buying rain boots in a store where it doesn't rain in the discount bin, and then sell those to areas where it does rain at normal price? How is this any different? Retail arbitrage is everywhere.
 
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Charnell

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He calls it a "rare drank". What we all need now is to axe the right kestions and get us some face tattoos and grills in da hood.
Interesting.
 

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