LONDON, March 22, 2024 — Coca-Cola is locked in a legal battle with Vue Entertainment after the European cinema chain opted to exclusively serve PepsiCo products, ending a nearly 25-year partnership. The dispute centers around alleged unpaid debts following the contract’s termination.
A Refreshing Shift: Vue Chooses Pepsi
Vue, Europe’s largest privately owned cinema operator, switched to PepsiCo as its exclusive soft drink supplier in March 2023, a move that has now triggered legal action from Coca-Cola.
- Vue operates over 90 cinemas in the UK and Ireland, and a total of 222 sites across eight European countries.
- The deal with PepsiCo is set to last until at least 2030.
- Coca-Cola Europacific Partners Great Britain initiated legal proceedings on Thursday, seeking to recover outstanding debts.
- Vue’s CEO, Tim Richards, expressed regret that the dispute couldn’t be resolved with a simple phone call.
The decision by Vue, which operates more than 90 cinemas across the UK and Ireland, to put its soft drink contract up for tender last year ultimately led to the selection of PepsiCo as its exclusive supplier. This move brought an end to a longstanding relationship with Coca-Cola that had spanned almost a quarter of a century.
Coca-Cola Europacific Partners Great Britain (CCEP) initiated legal action against Vue Entertainment on Thursday, aiming to reclaim what they allege are unpaid debts that accumulated when the contract was terminated. It’s understood that Coca-Cola also has outstanding debts owed *to* Vue, but has not pursued legal action to recover those funds.
The legal proceedings have been filed through Coltman Warner Cranston, a debt recovery specialist law firm based in Coventry. Darren Davoile, who leads the practice, stated the firm does not comment on client activity.
Tim Richards, Vue’s chief executive and founder, voiced his disappointment, stating, “One would have hoped that after 25 years, a simple phone call to me could have resolved a genuine dispute for such a small amount without the need for lawyers.”
Coca-Cola GB did not respond to requests for comment regarding the legal action.
Despite the filing, Vue maintains that the dispute regarding the outstanding debts on both sides has been resolved. “The petition for winding up has been withdrawn and should never have been filed,” Richards said. “There is currently no amount outstanding and the disputed amount was for under £100,000.”
PepsiCo’s portfolio includes popular brands such as Pepsi Max, Mountain Dew, Lifewtr, Bubly sparkling water, and Pure Leaf.
This isn’t an isolated incident; Vue’s competitor, Cineworld, also announced a similar shift away from Coca-Cola in 2020, opting for PepsiCo as its exclusive soft drink supplier.
