Steve sat at his desk. His hands were full of problems due to cash flow shortages at his company.
Vlasic Foods International had been spun off from Campbell’s just months ago. The effect
of the $500 million of debt that the spun-off company took with it was just becoming
known. While this deal was only one issue in a sea of financial challenges, Steve felt that he
should weigh in on the Wal-Mart part of the business given its effects on non–Wal-Mart grocery
accounts. He had pleaded with Hunn to dip into his equity with Wal-Mart and end this
promotion. Young was sure that this promotion had cannibalized the non–Wal-Mart business.
According to Young, they “saw consumers who used to buy the spears and the chips in
CASE 31 Wal-Mart and Vlasic Pickles 31-5
The Sales Perspective
Pat Hunn was surprised, if not disturbed, by the commentary from grocery marketing. Vlasic
had financial troubles that went way beyond the sale of pickles. Wal-Mart was a great
customer—sales with Wal-Mart now reached 33% of the Vlasic Foods business. On the revenue
side, Vlasic’s business was up with a dramatic shift upward in Wal-Mart sales. “Yes,
there have been some troubles with production, but that was their job. Wal-Mart has helped
build Vlasic’s name as a leader in the pickle business. . . . I simply do not see why so many
people are upset,” thought Hunn to himself. He sat at his desk, shrugged his shoulders, and
went back to work.