Marriott switches from Pepsi to Coca-Cola as exclusive beverage supplier

Coca-Cola will replace Pepsi as the beverage supplier for Marriott International following a recent agreement between the beverage giant and the hotel chain.

This new partnership involves replacing all Pepsi products with the drinks of its direct competitor in all bars, convenience stores, and mini-fridges at Marriott hotels worldwide.

A choice based on customer preference

This change disrupts the 34-year agreement between Pepsi and Marriott, which operates more than 9,700 establishments in 143 countries. In 1992, Pepsi ousted Coca-Cola as the beverage supplier for the hotel chain after Coca-Cola refused to refund up to $100 million in debts to Marriott.

As major players in the soda market for similar products, Pepsi and Coca-Cola have a historic rivalry. This new agreement with Marriott represents a new victory for Coca-Cola. Coca-Cola beverages will also replace Pepsi drinks at soda fountains in Marriott hotels and at events held in its establishments.

In a statement announcing the agreement, Coca-Cola said that Marriott’s decision was mainly due to its customers’ preference for its full range of beverages rather than Pepsi’s. In an email to hotel owners regarding this change, Marriott stated that over 70% of Bonvoy members prefer Coca-Cola over Pepsi.

The transition will happen gradually, in stages, in different regions and establishments, the banner indicates. Hotels will gradually replace their beverage stocks and adjust their supply chains to the new agreement. The transition to this new system, which involves 450 million nights, will begin this summer.

While Coca-Cola recently unveiled a new advertising campaign to boost sales of its soft drink in restaurants in the United States and counter the decline in restaurant attendance affecting beverage sales growth, this major agreement is good news for the multinational corporation.

Keywords: International, Hospitality