Image Source: Triplem
Aug 20, 2018
Jubilant Food-Works (JFL) operated Domino’s Pizza may change its choice from Coca-Cola for PepsiCo. This move may result in JFL ending its 20-year exclusive deal with Coke in the country and it’s among rare example of a multinational brand seeking to terminate a global partnership in India.
Domino’s is in active negotiations with rival beverage makers such as PepsiCo as part of a move that industry watchers say is aimed at cost savings. PepsiCo was called to present its contract terms to JFL last week. The officials declined to be named.
Domino’s is the single largest quick service restaurant chain in the country operated by the listed JFL with a store count of 1,144 and beverage deals are seen as significant opportunities for sampling and consumer connect.
The Michigan-based Domino’s Pizza, which has a global footprint across 85 countries, has historically had exclusive partnership deals with Coca-Cola worldwide, with only a few exceptions such as Australia, New Zealand and Malaysia where it serves PepsiCo brands.
Rivals such as McDonald’s has always been associated with Coca-Cola, while Yum! Brands that operates Pizza Hut, KFC and Taco Bell, has had a long-standing partnership with PepsiCo.
India is an important market for Domino’s. With accelerating growth in dining out as a habit, JFL is looking at boosting profitability. It reported an over three-fold increase YoY in its net profit for the quarter ended June 30, riding mainly on Domino’s everyday value pricing and menu innovations.