ATLANTA (AP) _ Burger King Corp. has reached a new long-term agreement with Coca-Cola Co. to keep Coke as the soft-drink supplier for its restaurants in the United States and Canada.
Terms of the deal weren’t announced, but it extends Coke’s current 10-year run as supplier for Burger King’s 8,200 restaurants in North America. The current agreement expires Sept. 30, and the new one, tied to volume, likely will last at least 10 more years.
Coke has supplied Burger King for most of the restaurant chain’s history, starting with the first Burger King that opened in Miami in 1954.
Pepsi gained Burger King’s soft-drink syrup business in 1984, but Coke won the fast-food chain back in 1990. Last year, Coke also reached a new 10-year agreement with Wendy’s International fast-food restaurants.
``We are proud of the strong partnership we have developed with Burger King, and look forward to refreshing their customers and working together to build both of our businesses well into the 21st century,″ said Jack Stahl, Coke senior vice president.
``We chose to continue our relationship with Coca-Cola because of its preferred brands, technical and marketing capabilities that help drive soft-drink profitability, their strategic support, as well as their passion for helping us grow our business,″ said Paul Clayton, Burger King Corp.’s president for North America. Burger King is a subsidiary of Diageo PLC.
Separately, Burger King also renewed a long-standing arrangement with Dr Pepper/Seven Up Inc. to keep Dr Pepper in Burger King’s U.S. restaurants.
Pepsi-Cola had bid for the Burger King business and said Coca-Cola must have paid a high price to keep it.
``Pepsi has forced one of Coke’s most profitable divisions into a dramatically different economic environment, one that has eroded their profits and had a negative impact on shareholder value,″ said Pepsi spokesman Jeff Brown from Purchase, N.Y.