December 13, 2013
PURCHASE, N.Y.PepsiCo, Inc., won another hard-fought battle of the ongoing cola wars this month by signing an agreement with Buffalo Wild Wings, Inc., to be the primary soft drink and non-carbonated beverage provider for its more than 975 corporate-owned and franchise restaurants.
Under the agreement, PepsiCo will provide beverages, such as Mountain Dew, Tropicana juices and lemonade and Lipton teas, to Buffalo Wild Wings restaurants beginning in 2014. The conversion to PepsiCo products from Coca-Cola drinks will begin early in 2014 and is expected to be completed by Spring 2014.
What attracted us to PepsiCo is their extensive beverage and food portfolio," said Buffalo Wild Wings CEO Sally Smith. We see this as a very powerful partnership in several ways. For starters, well be bringing dynamic beverage brands to our restaurants, including options that our guests have been asking for, like Mountain Dew."
The two companies plan to collaborate on joint marketing initiatives tied to sports and entertainment, an ideal match for the Buffalo Wild Wings brand. Smith said the restaurant chain was drawn to the marketing and promotional strength a partnership with PepsiCo creates, as it aligns well with its guest.
Their NFL sponsorship and relationships with additional sports, entertainment and pop culture icons will enhance our guest experience in the future," she added.
PepsiCo, the largest food and beverage business in North America, has been at the center of the sports and entertainment industries for many years, and has leveraged its vast sponsorships and relationships to engage fans around the world and bring the excitement of sports and entertainment to the retail marketplace.
The two companies also will explore opportunities to leverage the strength of PepsiCos portfolio and culinary expertise to develop exciting new Buffalo Wild Wings menu offerings with PepsiCo snacks, such as Doritos, Fritos, Tostitos and Ruffles.
Commenting on the deal, PepsiCo Chairman and CEO Indra Nooyi said: This partnership between PepsiCo and Buffalo Wild Wings is a natural fit. We see tremendous opportunities to leverage PepsiCos diverse portfolio in ways that benefit both companies through exciting new innovations, unique consumer engagement programs, and powerful brand activations tied sports and entertainment. We greatly appreciate the opportunity to partner with Buffalo Wild Wings, an impressive and growing company that has a bright future ahead."
In May 2012, PepsiCo signed a 10-year deal with DineEquity, Inc., to be the exclusive non-alcoholic beverage provider for its more than 1,800 Applebee's and 1,500 IHOP restaurants throughout the United States. The deal phased out the use of Coca-Cola products by the end of July 2012. The new agreement marked the first time in IHOP's 53-year history that PepsiCo beverages were served exclusively in the chain's restaurants and changes a previous supplier arrangement spanning decades.
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