Marriott is switching beverage partners. After more than three decades of collaboration with Pepsi, Coca-Cola is becoming the hotel group’s new strategic partner.
Marriott International has officially announced the signing of a global agreement with Coca-Cola, which will become its preferred partner for several beverage categories. The rollout will take place gradually across the group’s properties over the coming months.
The end of a long-standing partnership with Pepsi
Coca-Cola products will be available in guest rooms, restaurants, bars, lounges, and meeting and event spaces at Marriott hotels. The agreement covers carbonated beverages, as well as a broader range of products including hydration drinks and functional beverages.
This agreement was reached with Hot Shoppe Services International, its global procurement organization, to leverage its supplier network and create greater value for the owners and operators of its hotels.
This announcement marks a major shift for Marriott, which had an exclusive partnership with Pepsi for approximately 35 years before the group decided to reevaluate its procurement strategy.
But behind the change in supplier lies a story dating back more than three decades. While Marriott has long served Pepsi beverages, this choice was not purely commercial. According to Hospitality ON, the origins of this relationship date back to 1992, when the hotel group was going through a difficult financial period.
Marriott reportedly sought financial support of between 50 and 100 million dollars from Coca-Cola to fund its expansion. Coca-Cola declined the request, stating that it was not its role to act as a financial institution. Pepsi, on the other hand, agreed to support Marriott. In return, the group secured a global exclusive contract for its beverages.
A decision driven by customer expectations
For Marriott, this change is primarily driven by a focus on the customer experience. The group’s CEO, Anthony Capuano, believes this partnership will allow the company to offer the beverages that customers and members of the Marriott Bonvoy program enjoy most, while generating economic benefits for the network’s owners and franchisees.
For his part, Henrique Braun, CEO of Coca-Cola, views this agreement as an opportunity to provide travelers with a wider range of beverages throughout their stay, from sodas to juices, including sports drinks, functional beverages, and certain dairy products.
According to analyst Gary Leff, the contract with Marriott could be worth up to $22.5 million per year for the hotel group, based on an estimated contribution of 5 cents per night, without even taking into account revenue generated by restaurants, bars, banquets, or event spaces.
Read also > Marriott completes the integration of Lefay into its portfolio
Featured photo : © Marriott
