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As shoppers continue to grapple with the recession, retailers want to win their favor by giving them low prices.

But that has been creating tension between product makers like Coca-Cola Co., who are working hard to maintain profit margins while meeting retailer demands. Costco customers may have to look elsewhere for Coca-Cola products now that the retailer has stopped carrying them because the pair are fighting over prices.

“Beneath this surface of harmony, it’s a dogfight out there,” Gerry Khermouch, editor of Beverage Business Insights, said Tuesday at an investor meeting held by the soft drink maker at its hometown of Atlanta.

Costco is unique in that it is one of the only large consumer-level wholesalers where the CEO’s have an incredible amount of power to drive down prices for their customers on high demand products. Costco is really flexing their purchasing muscle with this one as these two giants go at it.

http://seattletimes.nwsource.com/html/businesstechnology/2010286893_apuscostcocoke.html

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