Part 11/15:
Trouble arose when Vassic’s leadership approached Walmart to phase out the gallon-promotional jars, citing unsustainable margins and the erosion of their premium branding. Walmart, however, refused to alter the deal. They threatened to cut off Vassic entirely unless the company continued the promotion, which had become a massive, money-losing venture.
Faced with this ultimatum, Vassic’s executives opted to wait for Walmart to change its stance. But Walmart’s concern was legitimate: the promotion was killing the entire category of pickles on their shelves, and the retailer recognized that the sustained discounting was damaging both their store sales and brand image.