The Great Soda Debates – Fountain or Cans? Coke or Pepsi?

As a truck or trailer owner deciding on which soda (cola, pop or coke) to sell requires a little more thought than a cart vendor. You have to consider delivery method as well as event limitations and profitability. Besides cans/bottles there are 2 more delivery systems to consider for the trailer or truck owner. Pre-and Post-mix. Both of these require a fountain, ice, cups, lids, straws and CO2. 

Pre-Mix fountain with fully mixed flavor canisters.

​You can buy your own fountain and mix or match flavors across brands. For example, selling Coca-Cola and Mountain Dew together. Or you can rent your fountain from the bottler and be bound to the brand strictly. Yes, they do follow up to make sure you are taking care of the equipment and branding requirements. Of course, you may not be able to sell one brand at an event sponsored by the other brand if the contract specifies brand exclusivity. Going this route limits your participation in certain events. Either you sell no sodas or buy cans of the correct brand at a higher price. Some events even require you to only purchase product on site. 

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Fig 2 Post mix with BIB storage rack.

​Space is another consideration. Inside a truck or trailer you have only so many cubic feet for storage and equipment. Not only do you need space for the fountain, the BIB rack and ice bin, you also have to store all the paper products to serve the soda. Styrofoam cups take up tons of valuable storage space! As you can see in Figure 2 the space requirement is quite large. Both these fountains require ice not only for the cups when served to the guest, but also for the fountain’s cold plate. This is an area that must remain iced at all times (even when you are closed). Otherwise the soda will become warm and flat. Coca-Cola recommends the serving temp straight out of the fountain be 34 to 36 degrees and you need a well iced cold plate to do that. Also post mix has a 30 psi water pressure requirement.

​How do these stack up profit wise? Pre-mix cost per ounce is so close to the cost per ounce of cans that once you factor in CO2, cup, lid and straw it is more expensive. Post-mix has two prices. A national account receives a discount/rebate making the cost for a 5-gallon BIB {Bag In Box} $73.95 (Pepsi is slightly cheaper at $72.65) or pay the non-national account price at Sam’s Club of $81.69. Coke syrup is mixed 5 parts of water to 1-part syrup. That 5-gallon box yields 30 total gallons of product which costs $0.0192 per ounce (national account) or $0.0212 at Sam’s. Add in the cost of cup, lid and straw of $0.0574 brings the cost of a 12-oz. no ice drink to $0.2878, compared to a 12-oz. can of soda at Sam’s Club of $0.285. Prices listed are as of fall 2017.

Other things to consider:

• Slow selling BIB sodas probably will expire before you can sell out. You can get 2.5-gallon BIBs, but I have had Fanta Orange and Mug Root Beer expire in my million dollar a year Burger King restaurant.
• A 5-gallon BIB of Coke weighs 65ish pounds while a 5-gallon BIB of Diet weighs 38ish. (Sugar apparently is very heavy) Making loading and unloading a factor.
• You will need much more ice for cups than just simply icing coolers containing cans.
• You will have the additional drainage of melting ice from the ice bins. How will that impact your waste water storage?
• You will need to carry more water to supply the post-mix fountain.
• Coca-Cola is pushing the Coke Freestyle machines that use a flavor cartridge combined with sugar and diet BIBs. I expect that will be the future of soda fountains in the coming years.

Deciding on which brand to sell can be nerve racking. Your personal favorite may not be the best seller in your market. Will it be Coca-Cola or Pepsi? Rarely will you lose a sale over brand unless you pick a generic store label. Selling generic labels will not build repeat sales and really crushes your image in your guest’s mind. Profitable per can? Yes. Smart long term? Absolutely not. I once set up near a newbie vendor that went the cheap route buying Sam’s Cola. (I drink it at home because I am cheap and don’t see a significant taste difference from Coke) After a couple of hours I noticed the occasional person leave his cart without buying anything. One guy came to my cart and I asked why he left. He grumbled “He’s selling that cheap crappy soda, so I figure he is selling Dollar Tree hot dogs too.”

Determining what is popular in your area is fairly simple. Go to a local grocery store (as opposed to regional or national chains) and look at shelf space allotted to each brand. A small grocer cannot afford shelf space to a product that doesn’t sell. Look at convenience stores, corner markets and drug stores. Also look at the signage. If the store has a Coca-Cola or Pepsi branded sign with the store’s name, chances are they are required to feature that brand with more space and premium location. Strike up conversations with owners and managers. Ask which sales rep they see more often or if the manager is the one to order the soda. A five-minute conversation and you will have your answer.

Looking nationally go to this site. Coca-Cola by far is most popular with Diet Coke and Pepsi trading 2nd and 3rd places between themselves depending on the month. Next most popular are Mountain Dew, Dr. Pepper and Sprite.

If you are still tossed up run a test on your cart for a month. Put Coke and Pepsi together and see which one your guests choose. You will be able to sell out the slower moving one, so it’s not like you will be stuck with it. And if they both sell equally well, keep them both. It is after all your business and you are the boss!

​Key points on soda choice:

1. Chose what your guests want not your personal favorite.
2. Think about your event venues and if there will be brand restrictions.
3. Consider space, storage and product turnover.
4. Remember fountains require more ice, more water, more storage space and more cash tied up in inventory for a longer period of time.
5. Purchasing your own fountain automatically makes you responsible for repair/replacement costs.
6. Cans/bottles are readily found anywhere, BIB is not.
7. Guests expect choice in soda you will need at minimum of 4: cola, diet, no caffeine and odd flavor (Dr Pepper, Mr Pibb, Root Beer, Mountain Dew, Orange etc.)
8. A full line up of BIB soda and water adds significant towing weight to your trailer.
9. Liquid shifts in transport making it easy to topple storage racks and open your trailer to an expensive sticky mess.  

 
In case you are wondering about my drink selections:

• Coke
• Diet Coke
• Sprite
• Dr. Pepper
• Mountain Dew
• Zephyrhills Spring Water
• Raspberry-Strawberry-Lemonade
• Coffee & Iced Coffee (depending on venue)

All in cans or bottles on my carts and trailers. My B&M restaurants all use BIBs or a mix of fountain and specialty bottled drinks. I have used both Pepsi and Coke fountains as well as Coke Free Style. I have found local Pepsi Bottlers more willing to help a small business with banners, signs and other marketing material. On the flip side, I have also had Coca-Cola go out of its way to install equipment to meet some very tight deadlines. 

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