Crédit photo: Marriott International
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The saga between the two soda giants continues at Marriott. Coca-Cola will replace Pepsi as beverage supplier for Marriott International, following a recent deal between the beverage giant and the hotel chain.
This new partnership provides for the replacement of all Pepsi products with drinks from its direct competitor in all bars, convenience stores and mini-fridges in Marriott hotels around the world.
A choice based on customer preference
The swap upends Pepsi’s 34-year deal with Marriott, which operates more than 9,700 properties in 143 countries. Pepsi ousted Coca-Cola from its role as beverage supplier to the hotel chain in 1992, following Coca-Cola’s refusal to repay up to $100 million in loans to Marriott.
Major players in the soda market in the similar products segment, Pepsi and Coca-Cola maintain a historic rivalry. This new agreement with Marriott therefore represents a new victory for Coca-Cola. Coca-Cola drinks will also replace Pepsi drinks at soda fountains in Marriott hotels and at events held in its establishments.
In a statement announcing the deal, Coca-Cola said Marriott’s decision was primarily due to customers’ preference for its full line of beverages rather than Pepsi’s. In an email to hotel owners regarding the change, Marriott indicated that more than 70% of Bonvoy members prefer Coca-Cola to Pepsi…
The transition will take place gradually, in stages, in different regions and establishments, indicates the banner. Hotels will gradually replace their drinks stocks and adapt their supply chains to the new agreement. The transition to this new system, which concerns 450 million nights, will begin this summer.
While Coca-Cola unveiled last week a new advertising campaign to boost sales of its soft drink in restaurants in the United States and counter the drop in attendance at establishments which is undermining the growth in beverage sales. In this context, this major agreement is good news for the multinational.
