One question often comes to people’s minds, “Why Burger King chose Coke over Pepsi?” Burger King and Pepsi partnership lasted for three years but in 1990, Burger King made the surprising decision to end their collaboration with Pepsi due to many reasons. Let’s understand the reason behind this decision.
The main reason why Burger King chose Coke over Pepsi is because of Coke’s brand image. Coke’s market ratio is 43.6%, and it is the biggest beverage player. BK decided to go with Coke on its menu offering because BK wanted to tap into a bigger market share and drive more sales.
It all happened in 1987 when Burger King ended its contract with PepsiCo. Later, they signed a deal with Coca-Cola and added Coke’s products to their drinks menu.
Undoubtedly, Coca-Cola is the most significant player in the beverage market. It owns 43.6% of the market share, whereas PepsiCo owns 31.1%. Because of Coke’s robust distribution network, Burger King collaborated with Coca-cola and chose Coke over Pepsi.
Discover the details of Burger King’s switch from Coke to Pepsi in this comprehensive blog. By the end of this blog, you will learn the truth behind the partnership between Pepsi and Burger King. Also, we will discuss whether PepsiCo is still a big player in the beverage market.
What's In The Post
Why Did Burger King Switch To Coke?
Burger King served PepsiCo beverages from 1983 to 1990 alongside burgers and fries. Later on, they switched to Coca-Cola as their exclusive beverage provider.
Burger King discontinued its partnership with Pepsi primarily because Pepsi was an indirect competitor of Coke. Pepsi once owned Yum! Brands in the 1980s had many other sub-brands, such as KFC, Subway, and Pizza Hut. So, these brands are direct competitors of Burger King.
In that scenario, Burger King said, “While PepsiCo is selling chicken, tacos, and pizza, Burger King is saying, “That competes with the stomach we are trying to fill.” In that case, Burger King discontinued its partnership with PepsiCo in 1990.
Another reason for the switch was that Coca-Cola had a more robust global footprint. It means they could better support Burger King’s international growth. Coca-Cola has a broader range of products that match Burger King’s menu offerings.
Besides that, Burger King could also use Coke’s marketing expertise to help them better connect with their customers and drive sales.
Moreover, Coke has always been a famous brand worldwide, so the partnership could also help Burger King appeal to a broader audience.
Is Pepsi Co. A Big Player In The Fast-Food Industry?
Yes, PepsiCo is a big player in the fast-food industry and a beverage leader worldwide. The company offers various products, including soft, juices, sports, and snacks.
Did you know that PepsiCo once owned Yum Brands from the 1980s to 1997? Yes, that’s true. Yum! Brands now own various sub-brands such as KFC, Taco Bell, Subway, Arby’s, Long John Silver’s, and Pizza Hut.
However, now Yum! Brands is an independent company and is not owned by PepsiCo anymore. It operates in over 150 countries and has over 50,000 restaurants worldwide.
In total, PepsiCo owns around 22 sub-brands. These sub-brands generate about $1 billion in revenue yearly, demonstrating how significant the PepsiCo player is in the beverage industry. In the United States, PepsiCo has a significant market share in the beverage industry.
According to a report by Beverage Digest, PepsiCo held 34% of the carbonated soft drink market share in 2022, while Coca-Cola held 54%.
However, when it comes to the overall beverage market, including non-carbonated drinks, PepsiCo is the leader, with a 14% market share compared to Coca-Cola’s 17.9%. PepsiCo’s success in the beverage industry is due to its impressive sub-brand portfolio.
Furthermore, PepsiCo has been expanding its offerings beyond carbonated soft drinks. The company has been increasing its focus on healthier drinks, such as juice, water, and sports drinks, to appeal to consumers who are becoming more health-conscious.
This strategy has been successful, and now PepsiCo’s non-carbonated drinks are growing faster than its carbonated offerings in recent years. Having a diversified brand, PepsiCo is a big player in the fast-food industry, and its success in the beverage industry is undeniable.
Are There Any Other Fast Food Restaurants That Choose Coke Over Pepsi?
There are plenty of fast-food restaurants that choose Coke over Pepsi. Pepsi may have fans, but Coke is quite a popular beverage.
One of the most notable examples of this is McDonald’s, which has had a longstanding relationship with Coke. McDonald’s has been serving Coca-Cola exclusively since 1955. This partnership has been so successful that it is also said that McDonald’s Coke and Sprite taste better.
McDonald’s restaurants store soda syrup in stainless steel containers, which helps soda preserve its flavor. Moreover, they also use a unique filtration process that removes impurities from the water used to make their beverages.
Apart from McDonald’s, many other fast-food restaurants choose Coke over Pepsi, such as In N’Out, Wendy’s, Ruby Tuesday, Chick-Fil-A, Red Robin, Outback, Jack In The Box, Steak N’ Shake, Five Guys, Chipotle, Sonic, and other famous fast-food restaurants.
All these fast food chains have exclusive deals with Coke, which limits them from selling other beverages.
By looking at various restaurant contracts with Coke, it has a strong presence in the fast-food industry. From McDonald’s to Burger King and Subway – many fast-food chains have chosen to partner with Coke. With Coke’s long history of success in the beverage industry, it’s easy to see why many restaurants choose it over Pepsi.
Conclusion
Here we come to the end of this article. Now it’s clear that there are many reasons why Burger King chooses Coke over Pepsi. In this blog, we mentioned that Coke’s brand image aligns more with Burger King’s values.
According to official reports, Coke also has a considerable market share, owning around 54% of the beverage. Partnering with beverage leaders like Coke will always be a fruitful decision for Burger King.
By choosing Coke over Pepsi, Burger King built a successful and enduring partnership that helped them elevate their brand.
There are many other common questions about Burger King, such as at what age does Burger King hire employees, is Burger King 24 hours open, and why are Burger King restaurants closing. All these questions have been making headlines. You will find all the answers in detail on our blog.
Frequently Asked Questions (FAQs)
Why does Burger King choose Coke over Pepsi?
Burger King has chosen to serve Coke exclusively since 1990. It was a strategic move by Burger King to join hands with the world’s beverage leader. Also, they focused on various factors while choosing to serve Coke, such as taste, cost, and brand recognition.
Is Coke more popular than Pepsi in the fast-food industry?
Yes, Coke is more popular than Pepsi in the fast-food industry. Many fast food chains, including McDonald’s, Subway, and Wendy’s, serve Coke, while others offer a choice between Coke and Pepsi.
What is the difference between Coke and Pepsi?
Coke and Pepsi are cola-flavored soft drinks but have different formulas and taste profiles. Some people prefer the sweeter taste of Pepsi, while others prefer Coke’s intense and slightly bitter taste.
Does the choice of soda brands affect the taste of fast food?
Yes, the choice of soda brand can affect the taste of fast food. Different soda brands have other flavor profiles, and some people may prefer the taste of one brand over another. Moreover, how soda is stored and dispensed can also impact its flavor.
