LATIN AMERICA/CARIBBEAN: PepsiCo signs supply agreement with Burger King Corp
PepsiCo will become the largest soft drinks provider for Burger King in Latin America and the Caribbean
PepsiCo has signed a multi-year contract to supply its soft drinks to Burger King Corp across Latin America and the Caribbean.
Through the agreement, PepsiCo will become the largest soft drinks provider for the fast food chain in these markets, it said late last week. The length of the contract was not disclosed.
"We are pleased to extend our reach with Burger King restaurants across this strategic region and we are particularly proud of working together in PepsiCo's priority markets such as Brazil and Mexico," said PepsiCo's president of Latin America beverages, Luis Montoya.
The agreement will see PepsiCo take an uspecified percentage of soft drink fountain business from The Coca-Cola Co, which previously had most of Burger King's business in Latin America, according to the Atlanta Journal-Constitution. However, the fast food chain is locked in to a 14-year contract with Coca-Cola for a certain amount of soft drink syrup, the publication said.
Coca-Cola accounts for 71% of the Mexican soft drink market compared to PepsiCo's 15%. In Brazil, Coca-Cola has 57% to PepsiCo's 9%, according to Beverage Digest.
Richard Hall is the chairman and founder of Zenith International, a food and drinks consultancy with around 1,000 clients in 50 countries. Here, we ask Hall what he expects the main influences will be...
- Pernod's Portman Group penalty - a coincidence?
- A tobacco analogy soft drinks will want to embrace
- Comment - Coke Life: Hit or Miss?
- just The Preview - SABMiller's Q1
- just Five Years Ago: A-B InBev sells Oriental
- Remy posts Q1 sales drop as Edrington loss bites
- Diageo faces public consultation over W&M sale
- Bacardi to fight US football team legal action
- Pernod Ricard swings at Portman Group
- Distell to take 26% stake in spirits firm KHEAL