Burger King is in talks with Coca-Cola for an exclusive beverage partnership, ending its nearly decade-long association with rival PepsiCo. Once the deal is formalised, Coca-Cola will become the partner of the top two global burger chains working in India – McDonald’s and Burger King.
India’s second-largest burger chain Burger King has been associated with PepsiCo since it started its operations in the country in 2014. However, according to an Economic Times report, the fast food chain is in the final stage of negotiations with Coca-Cola and is expected to announce the deal by the end of next quarter.
The company executives told the newspaper that Coca-Cola has been pushing its ‘Coke with meals’ platform aggressively and has captured a 15 per cent stake in food delivery platform Thrive, a competitor of Swiggy and Zomato. He said that Burger King’s association with Coca-Cola will directly benefits both restaurants and the beverage maker,
“Top-rung engagement with PepsiCo was also limited,” one executive told ET.
Burger King has had an exclusive partnership with PepsiCo in India since its inception, whereas in many other markets, the fast-food chain is associated with Coca-Cola. KFC and Pizza Hut, both owned by Yum! Brands and operated by franchise partners Devyani International and Sapphire Foods, also maintain exclusive partnerships with PepsiCo to offer their beverages in India, the report noted.
This potential agreement would grant Coca-Cola immediate access to serve its beverages, including soft drinks like Coke, Thums Up, and Sprite, as well as Minute Maid juice and Georgia coffee, at over 391 Burger King outlets in India, including its coffee and beverage sub-brand, BK Cafe. Exclusive partnerships with major food service chains like these are valuable accounts that can significantly boost sales in out-of-home and delivery channels.
In April of this year, Coca-Cola India made its first investment in an Indian startup by acquiring a stake in Thrive, owned by Hashtag Loyalty.