Coca-Cola has initiated legal proceedings against Vue Entertainment, the prominent cinema chain, following its decision to end a nearly quarter-century partnership and switch to rival PepsiCo as its exclusive soft drink supplier across Europe. The move marks a significant shift in the competitive landscape of the beverage industry within the entertainment sector.
End of a 25-Year Partnership
The longstanding relationship between Vue and Coca-Cola, which had endured for almost 25 years, came to a conclusion earlier this year. Vue, which operates more than 90 cinemas throughout the United Kingdom and Ireland, decided to put its soft drink contract out to tender in 2024. After a competitive bidding process, the chain selected PepsiCo as its exclusive supplier, with the agreement set to last until at least 2030.
Legal Action Over Alleged Debts
On Thursday, Coca-Cola Europacific Partners Great Britain (CCEP) filed a legal claim against Vue Entertainment to recover alleged unpaid debts that were outstanding at the time the contract was terminated. The action has been lodged by Coltman Warner Cranston, a law firm based in Coventry that specialises in debt recovery matters.
Darren Davoile, who leads the practice at the law firm, informed the Guardian that the company does not comment on client activity. Coca-Cola GB itself did not respond to a request for comment regarding the litigation.
Vue's Response to the Dispute
Tim Richards, the chief executive and founder of Vue, expressed disappointment over the legal escalation. He stated, "One would have hoped that after 25 years, a simple phone call could have resolved a genuine dispute for such a small amount without the need for lawyers." It is understood that Coca-Cola also has outstanding debts payable to Vue, although the cinema chain has not pursued legal action related to that amount.
PepsiCo's Expanding Portfolio
PepsiCo's portfolio, which now includes Vue cinemas across Europe, features popular brands such as Pepsi Max, Mountain Dew, Lifewtr, Bubly sparkling water, and Pure Leaf. This exclusive supplier deal strengthens PepsiCo's presence in the cinema market, following a similar move by Vue rival Cineworld, which announced a switch from Coca-Cola to PepsiCo in 2020.
Broader Industry Implications
Vue is the largest privately owned cinema operator in Europe, with 222 sites spread across eight countries. The decision to switch suppliers reflects ongoing competition between Coca-Cola and PepsiCo for dominance in key retail and hospitality channels. The legal action highlights the complex financial and contractual negotiations that can accompany such significant business transitions.
As the case progresses, it will be closely watched by industry observers for its potential impact on future supplier agreements and dispute resolution practices within the food and drink sector.
