Carnival Cruise Ditches Coca-Cola For PepsiCo

Cruise giant Carnival Corp CCL announced in a press release Thursday that beverage PepsiCo, Inc. PEP is its new preferred beverage partner.

Carnival Goes With Pepsi

Carnival's North American cruise ships will soon serve multiple beverages from PepsiCo's lineup, including its core Pepsi drink, Pure Leaf, Naked Juice and Mountain Dew, the company said.

Cruise goers will also be able to sip on Starbucks Corporation SBUX ready-to-drink coffee beverages.

The relationship will also explore new ways to improve Carnival and PepsiCo's shared sustainability commitment, including new ways to serve beverages that cut back on plastic.

Carnival's new partnership with PepsiCo replaces its existing deal with rival Coca-Cola Co KO.

Why It's Important For Pepsi

The classic Coke vs. Pepsi battle will now play out on the open seas.

Diehard lovers of Coca Cola could view Carnival's switch as a deal breaker and opt to vacation elsewhere. The same could be said for Pepsi lovers who can't fathom the thought of drinking a Coke.

But the typical cruise-goer is unlikely to care and will prioritize other factors, including destination and total cost.

The financial impact to Coca-Cola and Pepsi is unknown. PepsiCo's business is more diversified compared to Coca-Cola, as it includes snacks and food products.

What's Next For Carnival Cruise

Carnival's partnership will PepsiCo will begin in January, the company said. 

"Our brands both celebrate having fun and offering something special for everyone, making PepsiCo and Carnival Cruise Line a great match," Anne Fink, president of PepsiCo Global Foodservice, said in the press release.

"We're excited to share the voyage as we create enjoyable, seamless experiences for Carnival Cruise Line passengers while they enjoy their fun vacations at sea and ashore."

Carnival shares were trading down slightly at $44.80 at the time of publication, while Coke shares were up 1.42% at $53.42 and Pepsi shares were 1.38% higher at $135.65. 

Related Links:

Carnival Gets Price Target Cut On Weak Continental Europe Demand

Morgan Stanley: Buy PepsiCo's Fizz Over Keurig Dr Pepper

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