Costco’s Beverage Aisle Shake-Up: Pepsi Out, Coca-Cola In
In a major shift that will impact beverage supply across hundreds of warehouses, Costco will replace PepsiCo products with offerings from The Coca-Cola Company in its U.S. food courts starting this month. The move ends Costco’s longstanding relationship with Pepsi, marking a significant sourcing change for one of the nation’s most influential wholesale retailers.
Costco confirmed that the transition to Coca-Cola beverages will roll out gradually throughout April. Locations will start offering staple Coca-Cola drinks, including Coca-Cola Classic, Diet Coke, Sprite, and Minute Maid lemonade. Notably, Costco will still serve its popular Kirkland Signature-branded iced tea and water alongside the new Coke range.
The switchover affects only the food court beverages—PepsiCo products like Mountain Dew and Pepsi may still appear in the bulk packaging shelves, depending on each warehouse’s inventory and contracts. However, with food court concessions serving millions of Costco customers weekly, the move represents a major win for Coca-Cola and could have ripple effects across beverage category sales.
For PepsiCo, losing Costco’s in-store drink dispensers is a setback. Costco operates 600+ warehouses in the U.S. and has a proven influence on consumer brand engagement. Food courts, known for affordable fan-favorites like the $1.50 hot dog and soda combo, function as high-traffic sampling hubs that reinforce brand loyalty through repeat interaction. The swap means Coca-Cola products will now be directly associated with this customer experience.
The change may also reflect evolving procurement priorities amid inflationary pressures. Costco’s leadership is known for strict supplier negotiations and long-term cost control focus. While specific deal terms have not been disclosed, beverage category observers suggest pricing and supply chain stability increasingly factor into such decisions.
The shift underscores an important trend for FMCG brands: channel strategies that prioritize foodservice visibility are just as critical as traditional retail placement. As warehouse retailers continue to refine value propositions within their core offerings, winning food court contracts may become a bigger battleground for top-tier brands within both carbonated and non-carbonated segments.