As the flight attendants make their way through my JetBlue flight, you hear people reflexively order Coke, Coke Zero, or Diet Coke. Those are the dominant cola brands, and people assume they will be available.
They're not on JetBlue (JBLU) , which prompts an endless chorus of “Is Pepsi okay?”
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JetBlue knows it's not, but brand exclusivity is negotiated and paid for, and Coca-Cola (KO) can't win every contract. PepsiCo PEP, as the clear second-place player in the space, is bound to win over some major restaurants and airlines.
Coca-Cola dominates that United States cola market, outselling Pepsi products more than 2-1.
U.S. cola market share:
- Coca‑Cola total cola brands (Coca‑Cola Classic, Diet Coke, Coke Zero Sugar): 69% of U.S. cola sales in 2023
- Pepsi cola brands (Pepsi, Diet Pepsi, Pepsi Zero Sugar): 27% of U.S. sales in 2023
- Pepsi’s share declined from ~15% in 1995 to ~8.3% in 2023, with Dr Pepper tying Pepsi at ~8.3% in 2024, according to data from Visual Capitalist.
“Coca‑Cola wins because it has remained Coke. Pepsi loses because it always tries to be something else,” NYU Marketing Professor Scott Galloway said on his Pivot podcast. (This is a paraphrase of a longer talk on the subject.)
Pepsi hasn't just fallen behind Coca-Cola, a space it has held for decades. It's also fending off another competitor.
For 2024, Dr Pepper had 8.34% of the soda market last year, while Pepsi had 8.31%. Although Dr Pepper is technically ahead of Pepsi, statistically it's a virtual tie.
Coke captured 19.2% of the soda market in the U.S. by volume last year, making it by far the nation's favorite, according to Beverage Digest’s data.
These restaurants, hotels, casinos, and airlines only serve Pepsi
Fast-food chains
- Taco Bell
- Pizza Hut
- KFC
- Long John Silver’s
- A&W Restaurants
- Arby’s
- Popeyes (in many locations; varies regionally)
Casual dining restaurant chains
- Applebee’s
- Buffalo Wild Wings
- IHOP
- Red Lobster
- Outback Steakhouse
- Cheesecake Factory
- BJ’s Restaurant & Brewhouse
- Cracker Barrel (many but not all locations)
Hotels, resorts, and casinos
- Hilton Hotels (most properties)
- Hyatt Hotels (many locations)
- Caesars Entertainment (Las Vegas and regional U.S. casinos)
- MGM Resorts (most properties serve Pepsi)
Airlines
- American Airlines
- JetBlue
- Alaska Airlines
- Hawaiian Airlines
- Spirit Airlines
Carnival Cruise Line brought back Coca-Cola products
Carnival Cruise Line recently shifted from Pepsi back to Coca-Cola products, and the public outcry on Brand Ambassador John Heald's web page was largely joyous.
“This is awesome news, it just made my day. I've been asking for this in my surveys for years. Looks like Carnival's getting something right,” Kenneth Winslow shared.
While some passengers made it clear that soda choice does not factor into their choice of cruise line, others were really excited.
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“Heck frickin' yeah John now this is amazing news. As a Diet Coke junkie I’m literally so happy to be able to enjoy my favorite drink on board once again. Tell the Beards (Heald's term for Carnival executives) I said thanks a million. I’m sure this will make a lot of cruisers very very happy,” Jessica Garbutt shared.
Michael Stadler took an even more aggressive approach.
“This is literally the best news I've read today. Friends don't let friends drink Pepsi,” he wrote.
More people expressed sadness over the loss of Mountain Dew products, a PepsiCo brand, than the loss of Pepsi itself.
“Diet Dew is the only soda I drink so I’m going to miss it and hate having to carry my own on board again,” added Heather Dickerson.
The cruise line signed the new deal in June, but it won't complete the transition until Labor Day. Passengers are allowed to carry on a 12-pack of soda cans if they choose.
Coke vs. Pepsi key takeaways
- Coca‑Cola remains the dominant cola brand, with classic, diet, and zero‑calorie variants comprising nearly 70% of U.S. cola sales in 2023.
- Coke Zero Sugar is the fastest‑growing diet cola, based on double‑digit volume growth in recent quarters.
- Pepsi and its diet/zero variants hold about 25‑27% of U.S. cola sales, but are losing ground to Coca‑Cola and non‑cola brands like Dr Pepper.
- Diet and zero variants are increasingly important: Low‑ or zero‑sugar beverages make up about 30% of Coke’s total volume and 60% of PepsiCo’s volumes in major markets by mid‑2025.
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