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Subway chain chooses Coke over Pepsi: Media report
New York, Nov 28: Coca-Cola Co. will become the exclusive supplier of fountain drinks to Subway Restaurants, putting an end to the chain`s partnership with the Pepsi unit of PepsiCo Inc., The New York Times said on Thursday.
New York, Nov 28: Coca-Cola Co. will become the exclusive supplier of fountain drinks to Subway Restaurants, putting an end to the chain's partnership with the Pepsi unit of PepsiCo Inc., The New York Times said on Thursday.
The deal, effective in 2005, will put Coke fountain drinks in Subway's 20,000 restaurants around the world, according to the Times.
Pepsi had been the primary provider of fountain drinks served in the chain since 1988, although Coca-Cola supplied about 15 per cent of the restaurants with fountain drinks, bottles and cans, the paper said.
Officials at Subway said they began evaluating the company's beverage business about a year ago and decided a single beverage distributor would best meet its needs, the report said.
The officials said they chose Coke because they felt that it would help Subway with marketing, innovation and global distribution, according to the article.
The New York Times said neither Coke nor Subway would disclose the financial terms of the agreement.
Coca-Cola, PepsiCo and Subway could not immediately be reached for comment on the Thanksgiving Day holiday.
The US stock market is shut on Thursday for the holiday.
On Wednesday, Coca-Cola closed up 34 cents at $46.69 and PepsiCo rose 26 cents to USD 47.96, both on the New York Stock Exchange.
Bureau Report
The deal, effective in 2005, will put Coke fountain drinks in Subway's 20,000 restaurants around the world, according to the Times.
Pepsi had been the primary provider of fountain drinks served in the chain since 1988, although Coca-Cola supplied about 15 per cent of the restaurants with fountain drinks, bottles and cans, the paper said.
Officials at Subway said they began evaluating the company's beverage business about a year ago and decided a single beverage distributor would best meet its needs, the report said.
The officials said they chose Coke because they felt that it would help Subway with marketing, innovation and global distribution, according to the article.
The New York Times said neither Coke nor Subway would disclose the financial terms of the agreement.
Coca-Cola, PepsiCo and Subway could not immediately be reached for comment on the Thanksgiving Day holiday.
The US stock market is shut on Thursday for the holiday.
On Wednesday, Coca-Cola closed up 34 cents at $46.69 and PepsiCo rose 26 cents to USD 47.96, both on the New York Stock Exchange.
Bureau Report