Domino's Pizza, run by Jubilant FoodWorks, could terminate its 20-year exclusive partnership with Coca-Cola in India and join hands with Pepsi instead, The Economic Times reported.
Domino's is reportedly in active negotiations with other beverage makers, which includes Pepsi Co. The move is aimed at reducing costs, industry watchers told the paper.
Such deals help beverage makers by providing opportunities for sampling and consumer connect. Domino's has over a 1,000 outlets in India.
The news daily received a confirmation on the negotiations from a Jubilant FoodWorks spokesperson. Moneycontrol could not independently verify the report.
"We have enjoyed a strong partnership with Coca-Cola India over the last 20 years. As we look to build our business for the next phase of growth, we have initiated a process to look at various options and identify the right beverage partner who can help strengthen our beverage portfolio and drive growth," the spokesperson was quoted as saying.
Pepsico Co was reportedly called last week to present its contract terms to Jubilant FoodWorks, two Pepsi Co officials told the paper.
Coca-Cola has been the beverage partner for Domino's in most countries. Out of the 85 countries where Domino's Pizza has a presence, it has not partnered with Coke in only a few countries such as Australia, New Zealand and Malaysia.
"The quick restaurant space is unprofitable for beverage companies, but deals with restaurant chains help them in sampling and consumer connect," one of the officials was quoted as saying.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
