The Coca-Cola Company will replace PepsiCo as the beverage provider for Marriott International, following an agreement between the beverage giant and massive hotel chain, Atlanta News First reports. The deal will exchange all Pepsi products for its direct competitor’s beverages in all of Marriott’s lobby bars, mini-markets, and mini-fridges worldwide.
The swap upends Pepsi’s 34-year deal with Marriott, which operates over 9,700 properties in 143 countries. Pepsi ousted Coca-Cola as the hotel chain’s beverage supplier in 1992, following Coke’s refusal to pay up to $100 million in loans to Marriott.
As major players in the soda category with similar products, Pepsi and Coca-Cola have a longstanding rivalry, and the new deal with Marriott marks the most recent win for Coke. Coca-Cola products will also replace Pepsi drinks in Marriott’s soda fountains and at events hosted at its hotels. The move is additionally expected to boost its marketing value among consumers.
Three years ago, fast food chain Culver’s made the same switch, which sent a jolt of anger through its audience of faithfuls. But Coke said Marriott’s decision is a result of their guests’ preference for its “total beverage portfolio” over PepsiCo’s in a statement announcing the deal. Whether the hotel chain’s patrons will respond positively to the replacement is yet to be seen.
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