{"id":14607,"date":"2015-06-18T15:55:15","date_gmt":"2015-06-18T19:55:15","guid":{"rendered":"https:\/\/www.wework.com\/creator\/?p=14607"},"modified":"2020-03-30T18:38:48","modified_gmt":"2020-03-30T22:38:48","slug":"how-a-beloved-los-angeles-soda-shop-stood-up-to-pepsi","status":"publish","type":"post","link":"https:\/\/www.wework.com\/ideas\/professional-development\/how-a-beloved-los-angeles-soda-shop-stood-up-to-pepsi","title":{"rendered":"How a beloved Los Angeles soda shop stood up to Pepsi"},"content":{"rendered":"<p>When I arrive at Galco\u2019s Old World Grocery, the last thing I expect owner John Nese to talk about is the future. After all, in its current format, Galco\u2019s has been around Los Angeles\u2019 Highland Park neighborhood since 1955, and in one form or another, the grocery store dates back to when the city was a sleepy border town in 1897.<\/p>\n<p>Nese is excitable, bubbling with energy on what seems to be a pretty typical Thursday for the store. A few people wander in, wander out. They look straight ahead, into the aisles, and notice lots and lots of soda. More soda than they\u2019re used to. More soda than they might be comfortable with, even if they\u2019re people who love soda, because all of it comes from unfamiliar labels. Which is what John Nese and Galco\u2019s Old World Grocery has become known for in the last two decades: selling sodas from around the world.<\/p>\n<p>Nese wants to talk about gentrification and how its high costs are changing Highland Park.<\/p>\n<p>\u201cThere are more homeless people in Highland Park right now than there\u2019s ever been, because people can\u2019t afford to live in Los Angeles,\u201d he says. \u201cIt\u2019s a huge cost in human-ness.\u201d<\/p>\n<p>Nese knows the costs of Angeleno gentrification deeply: he grew up in Chavez Ravine, where his father herded goats before the city infamously removed all denizens in order to build Dodger Stadium. Chavez Ravine was mostly Mexican, but Nese remembers his Italian family fitting in perfectly: his mother would go next door to learn how to cook enchiladas, while she would teach spaghetti to anyone willing to listen. He never realized his family was poor until people told him he was, but it never fazed him: \u201cHow many kids do you know who could ride an oil well?\u201d he asks.<\/p>\n<p>Galco\u2019s had a long life as an Italian grocery, one that started to wane with other independent groceries around 15 years ago.<\/p>\n<p>\u201cI can tell you what happened here in California,\u201d Nese says. Larger chains started buying up distribution chains outright and putting the squeeze on Galco\u2019s and other markets. \u201cThe independents were capped on supermarket pricing and they could never compete more than any other independent.\u201d<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-14613\" src=\"https:\/\/www.wework.com\/ideas\/wp-content\/uploads\/sites\/4\/2019\/06\/How-a-Beloved-Los-Angeles-Soda-Shop-Stood-Up-to-Pepsi-3.jpg?resize=2048%2C1365\" alt=\"How a Beloved Los Angeles Soda Shop Stood Up to Pepsi 3\" width=\"2048\" height=\"1365\" \/>For soda, Nese says, \u201cwhen they re-opened the distribution network, the cost per case was 15 dollars more. So all of a sudden, the prices in the supermarkets soared, but there was no cap. There was nothing to judge what was expensive.\u201d<\/p>\n<p>The result?<\/p>\n<p>\u201cWe couldn\u2019t compete. It was cheaper for me to go to a supermarket and buy one can off the shelves than it was to get a case delivered here,\u201d he reveals. \u201cThe manufacturers would call, and want to sell us all this stuff, and I just couldn\u2019t afford to buy it. So we were sitting around, and then this Pepsi-Cola rep walks in one day. He says, \u2018I\u2019m going to give you the best buy you\u2019re ever gonna get on a pallet of Pepsi cans. I\u2019m only gonna charge you $5.59 a case.\u2019 Remember, this was 15 years ago. I asked him how much profit I could make on a pallet like that. He said 30 dollars. I told him thanks, but no thanks\u2014I\u2019ll point my customers down the street to where they can buy Pepsi at the supermarket for cheap.\u201d<\/p>\n<p>The salesman didn\u2019t take kindly to this. He came back with Pepsi higher ups, who cased the store. They never said a word, but their actions spoke volumes to Nese. He\u2019d have to play by their rules, even if that meant he\u2019d go out of business. If Nese had agreed to their prices, he knew that they would just force them upon other independent businesses.<\/p>\n<p>\u201cNuts to that,\u201d he says. \u201cIt took me two weeks to figure it out. A light bulb went off. You know, John, you should be happy you own your shelf space, and Pepsi doesn\u2019t, and you can sell anything you want. So I went out and found 25 brands of little sodas.\u201d<\/p>\n<p>It was a risk, betting on unknown and older brands. But curiosity got the better of customers: What was in those glass bottles? What did cane sugar taste like? Soon, the biggest problem turned out to be that people felt overwhelmed with options.<\/p>\n<p>\u201cThere\u2019s so much choice,\u201d Nese says. \u201cIt\u2019s not that you\u2019re overwhelmed, you\u2019re just not used to having a choice for yourself. Coke and Pepsi buy all the shelf space. You can only buy what they want to sell you, so you\u2019re bought and paid for. For me, it\u2019s personally aggravating. And that\u2019s why we have Freedom of Choice,\u201d he says, alluding to the painted sign hanging above us.<\/p>\n<p>Nese fell into soda accidentally. He didn\u2019t even drink them as a child. But the freedom he has found in the wake of a bullying from Pepsi has sprung into a philosophy that defines his entire business.<\/p>\n<p>\u201cOnce upon a time, there were 3,500 soda manufacturers in the United States,\u201d he says, talking about mint soda, cucumber soda, and sodas with the flavor of rose petals. \u201cHave you ever noticed that Coke and Pepsi don\u2019t create anything? They buy little guys and shrink their lines from 25 sodas to two. If it doesn\u2019t sell a million cases, forget it.\u201d<\/p>\n<p>On the off chance a customer can\u2019t find a soda of their choosing, Galco\u2019s provides them the opportunity to make their own. Rows of cane sugar syrups line the back wall, along with bottles and caps and a dispenser of carbonated water.<\/p>\n<p>\u201cWhatever you can think of, you can make!\u201d Nese says.<\/p>\n<p>He warns that this is not a happy-go-lucky enterprise.<\/p>\n<p>\u201cYou have to live with your mistakes,\u201d he says. \u201cI had a kid come in last week and make a soda. He comes up to me and says, \u2018I don\u2019t like it. Can I dump it out?\u2019 I say, \u2018Yeah! As long as you pay for it.\u2019 I asked him what type of soda he was trying to make, and he said he didn\u2019t know, he was just pumping syrups in at random. \u2018Next time,\u2019 I said, \u2018put some thought into it and it\u2019ll be really good.\u2019\u201d<\/p>\n<p>So very carefully, I go with two flavors: green apple and marshmallow. I can say without hesitation that it was the best damn soda I\u2019ve ever had in my life.<\/p>\n<p>Photo credit: Salvador Ochoa<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When I arrive at Galco\u2019s Old World Grocery, the last thing I expect owner John Nese to talk about is the future. After all, in its current format, Galco\u2019s has been around Los Angeles\u2019 Highland Park neighborhood since 1955, and in one form or another, the grocery store dates back to when the city was [&hellip;]<\/p>\n","protected":false},"author":910,"featured_media":14611,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[43902],"tags":[],"class_list":["post-14607","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-professional-development"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v25.3.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How a beloved Los Angeles soda shop stood up to Pepsi<\/title>\n<meta name=\"description\" content=\"At Galco\u2019s Old World Grocery, owner John Nese caters to customers who 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