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|Why Does KFC Only Sell Pepsi And Not Coke? by silibaba: 9:00pm On Aug 30|
There are two distinct reasons why Pepsi (and other PepsiCo soft drinks) and not Coke is sold at KFC in many countries around the world.
Firstly, fast food restaurants use fountain dispense soft drinks instead of the cans and bottles that are sold in retail stores. This is far more profitable for the restaurant. However, fountain beverages require sophisticated and expensive equipment in order to blend and carbonate the beverage at the point of dispensing (syrup is blended with filtered water and carbonated in the restaurant).
Dispense equipment is expensive to purchase and install. Industry convention calls for the supplier to pay for the installation and ongoing servicing of the dispense equipment at no cost to the restaurant. As a result, the soft drink contract is usually signed with only one supplier; in most cases, either the Coca-Cola Company or PepsiCo.
In the case of KFC, PepsiCo previously owned the restaurant chain. KFC was spun off, along with Pizza Hut and Taco Bell, into a company called YUM. For PepsiCo, maintaining a close relationship (and supply agreement) with YUM remained a top priority since the availability of PepsiCo soft drinks along with fast food is a key strategic imperative.
PepsiCo has continued to retain the dispense contract with KFC in most countries. However, renewal terms are hard fought every two years or so. There is no long term assurance that KFC will never convert to dispensing Coca Cola beverages in the future. And if KFC were to consider switching to another supplier, significant marketing funds and inducements would be required.
KFC dispense Coca Cola products in several countries including Australia, New Zealand and South Africa. In these instances, the principle still holds that one or the other large soft drink supplier is awarded the exclusive contract to supply soft drinks. The brand strength of Coke versus Pepsi comes into play when this exclusive contract is awarded.
|Re: Why Does KFC Only Sell Pepsi And Not Coke? by Daveambition(m): 9:10pm On Aug 30|
There already have human coca cola shapes coming IN & OUT...
|Re: Why Does KFC Only Sell Pepsi And Not Coke? by Shellsploit: 9:26pm On Aug 30|
Mr Biggs nko
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