Coke Kicks Out Pepsi at Costco

Companies and Brands

Published: January 25, 2025 8:53 am

Last Updated: January 27, 2025 10:23 am

Costco Wholesale Corp. (NASDAQ: COST) has an official soft drink used in one of its most iconic services. The $1.50 hotdog was served with Pepsi for years. Suddenly, Pepsi is out, and Coke is in. Costco CEO Ron Vachris said on Costco’s earnings call, “We will be converting our food court fountain business back over to Coca-Cola.”

24/7 Wall St. Key Points:

Costco has replaced Pepsi with Coke as its official drink.
It is part of Coke’s brand-building strategy that helps sell products.
Take this quiz to see if you’re on track to retire. (sponsored)

Pepsi first got its spot as Costco’s official drink in 2013. As CNN pointed out, this was not only a win to be part of the $1.50 hotdog program. “The deal is not just for the machines and syrup in the sodas, but cups, straws and other products,” the news channel reported. It further reports that Costco sold about 150 million $1.50 hotdogs last year.

It is hard to underestimate the value of the deal to Coke parent Coca-Cola Co. (NYSE: KO). Costco has 624 massive warehouse stores in the United States. It has 137 million people who pay to shop at its stores using the Costco membership program. The program has two tiers. The first is “Gold Star” members, who pay $65 a year. The upgraded deal is called “Executive Membership.” Each allows people to shop at Costco stores and at its website. Executive members get special deals and 2% back on their purchases.

Coco-Cola uses a huge sponsorship program to build its brands and promote its products. It spends hundreds millions of dollars a year on these. They include the Olympic Games, NFL stadiums, Major League baseball, NASCAR, and NCAA championships.

The Costco deal is part of the worldwide branding strategy for Coca-Cola.

These 10 Sodas Are Taking Over America

It’s Your Money, Your Future—Own It (sponsor)

Retirement can be daunting, but it doesn’t need to be.

Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!

Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.