Coca-Cola Secures Major Deal, Ending Pepsi’s 30-Year Partnership

Coca-Cola has scored a significant triumph in the competitive cola market by edging out Pepsi from one of the world’s largest hotel chains after a partnership spanning over three decades.

Marriott International has decided to end its long-standing relationship with Pepsi, opting instead for Coca-Cola as its official beverage provider. This change will affect over 9,700 Marriott properties across 143 countries, including 6,200 locations within the United States.

As a result of this shift, guests will now encounter Coca-Cola’s range of products, such as Sprite and Fanta, more frequently throughout Marriott hotels. These beverages will appear in key areas such as lobby fountains, restaurants, minibars, and room service offerings.

Pepsi had maintained a strong presence since 1992, making this transition a substantial shift in the enduring rivalry between these two beverage giants.

In response, Coca-Cola issued a statement noting that Marriott’s choice underscores the appeal of Coca-Cola’s brand and the preference of Marriott guests for its diverse drink selection.

It marks a major win for Coke after Subway’s 2024 decision to switch to Pepsi in a 10-year deal spanning more than 20,000 US locations.

The move initially sparked backlash from customers, underscoring Coke’s dominance of the $97 billion US soda market. The company remains the clear leader, holding a 19.1 percent share – more than double that of any rival.

Meanwhile, Pepsi has slipped to the No 4 soda brand in the US, after Dr Pepper overtook it for second place in 2024 and Sprite moved into third in 2025.

Coca-Cola has landed a huge victory in the cola wars – kicking Pepsi out of one of the biggest hotel chains in the world after more than 30 years

Marriott International is dropping Pepsi as its official drinks supplier, replacing staples like Mountain Dew, Gatorade and 7 Up with beverages from Coke across its roughly 9,700 hotels in 143 countries, including 6,200 in the US

Pepsi had held the contract since 1992, making the switch a major shake-up in one of the longest-running brand rivalries in the food and drink industry 

The switch has already sparked a wave of reactions from travelers online. ‘Thank god,’ one person wrote bluntly on Reddit, echoing a flood of similar responses. Another joked: ‘Pepsi. For when they don’t have Coke.’

‘I’m unreasonably excited about this,’ another admitted, with several saying they’d actively avoided Marriott over its Pepsi-only offering.

Some loyal Pepsi drinkers say the switch will be a loss – particularly for fans of its broader lineup. ‘Oh no. My Diet Mountain Dew!’ one user wrote, while another added: ‘Damn, I really love Diet Pepsi.’

‘Brands flip flop depending on who’s offering the better deal,’ one commenter said. ‘It’s not about customer preference – it’s about margins.’   

In 2025, Coke also snatched big contract from Pepsi at Costco. The warehouse giant had originally dropped Pepsi to maintain the price of their famous $1.50 soda and hot dog deal, but swapped back as customers preferred Coca Cola.

Retailers like Costco can only serve Pepsi or Coke products – they are not able to distribute both at the same time due to product contracts.  The drinks companies bid on contracts to supply their products to such chains, and often the lowest cost bid for the retailer will win.

The rivalry between Coke and Pepsi has spanned decades, intensifying in the 1980s when Pepsi nearly toppled Coke during the height of the cola wars.  As recently as two decades ago, sales of Dr Pepper and Sprite were each less than half that of Pepsi. At the time, roughly one in every nine sodas sold in the US was a Pepsi, while Dr Pepper ranked just sixth in popularity – behind Sprite.

The chart below, based on data from Beverage Digest, illustrates how market share between Pepsi, Dr Pepper and Sprite has steadily converged, with Dr Pepper now narrowly pulling ahead.

The change in fortunes comes after 140-year-old Dr Pepper increased its market share with advertising pushes, new flavors and a boost from TikTok trends.

Sprite, created by Coke in 1961, has also gained ground thanks to heavy investment from its parent company to secure prime shelf space in stores.

Coca-Cola Canada Bottling Limited employs more than 6,000 people nationwide

It marks a major win for Coke following Subway’s 2024 decision to switch to Pepsi in a 10-year deal spanning more than 20,000 US locations 

Coke also swooped up a big contract with Costco against its rival in 2025, when the warehouse operator dropped Pepsi 

Meanwhile, consumers have been shifting away from regular Pepsi in favor of low-sugar options and fresh competitors’ drinks like Poppi and Olipop.

But Pepsi representatives have pointed out that the Pepsi brand remains the overall No 2 soda when taking into account the other versions, which also include Diet.

Pepsi is spending millions to lure customers back. The company has revived the iconic Pepsi Challenge – a marketing campaign that helped close the gap with Coke in the 1980s.

In 2025, pop-up taste tests across US cities pit Pepsi Zero Sugar against Coke Zero Sugar in blind trials.

Most recently, they announced they were cutting prices on their snack brands such as Lay’s, Doritos, Cheetos and Tostitos chips to win back customers burdened by years of price hikes.

‘For some consumers, low- and middle-income consumers, the biggest friction they have today in our category… is affordability,’ PepsiCo Chairman and CEO Ramon Laguarta said in February during a conference call with investors. 

PepsiCo plans to cut prices and slash nearly a fifth of its product lineup under pressure from Elliott Investment Management. The activist investor built a $4 billion stake in September. 

It argues the company’s North American food and beverage divisions are dragging on growth and profits.