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Burger King is reportedly in talks with Coca-Cola Company for a tie-up deal in India. This means that the fast-food chain may soon be ending its ties with PepsiCo as its official beverage partner in the region.
According to Business Standard, some officials of Burger King India said the new deal with Coca-Cola may be formalized soon as the negotiations are already in the final stage. The official announcement of the partnership may follow by the end of next quarter.
Burger King is negotiating with the Atlanta, Georgia-headquartered beverage manufacturer, and an exclusive contract that will come out from this deal will effectively break off its 10-year cooperation with PepsiCo, Outlook India reported.
Then again, it should be noted that this deal between Burger King and Coca-Cola is new in India. This is because while the Whopper burger seller and the Coke maker are already partners in the United States, the Indian unit of BK maintained an exclusive supply contract with PepsiCo since it was launched in India in 2014.
Thus, this tie-up will give Coca-Cola immediate access to Burger King’s 391 stores, including BK Cafe outlets, operating in the most populous nation in the world. Coca-Cola’s recent acquisition of a stake in the Thrive restaurant ordering platform in the territory will also be beneficial for BK.
"Coca-Cola has been escalating its ‘Coke with meals’ platform aggressively and has a 15% stake in food delivery platform Thrive, which competes with Swiggy and Zomato, with a base of more than 14,000 restaurants,” a company official commented. “Such an association directly benefits both restaurants and the beverage maker and was among the reasons that clinched the deal with Coca-Cola."
Meanwhile, in addition to Coke drink varieties, The Coca-Cola Company is expected to supply other beverage brands such as Thums Up, Sprite, Minute Maid, and Georgia coffee to Burger King and its BK Cafe stores in India.
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