NEW YORK - Coca-Cola Enterprises Inc. has been testing a new delivery method for Coca-Cola beverages to 7-Eleven stores located in Southern California, Reuters reports. The system would use Costco Wholesale Corp. as distribution center for the drinks and a third-party logistics company for delivery.

The Teamsters labor union is fearful that such a change in distribution would result in the loss of hundreds of jobs. However, Bob Phillips, a Coca-Cola bottling affiliate spokesman, indicated that the test showed 10 jobs eliminated with two jobs added, for a net loss of only eight positions. Phillips did not elaborate on whether the pilot program would be tested in other areas.

"Although no one wants a work stoppage when the economy is in such terrible shape, we will fight for our jobs," said David Laughton, director of the Teamsters' Brewery and Soft Drink Workers Conference, adding that Coke??s test is "dangerous."

Coke plans to purchase the North American operations of Coke Enterprises to gain more direction over its supply chain in order to slash delivery costs and provide more flexibility in distribution. PepsiCo Inc also finalized a similar acquisition recently.

Currently, Coke ships beverages directly to the stores from the bottling facility via a warehouse and distribution center. The pilot program sends the drinks to a Costco business center, where another company moves them to a warehouse. The beverages ultimately make their way to a 7-Eleven store with other merchandise.