In many retail sectors, there appear to be two clear-cut market leaders, and many people have a favorite.
You may prefer Lowe’s over Home Depot, or Sam’s Club over Costco.
The same logic applies to food. Some people are diehard Hostess fans, while others ride or die with Little Debbie.
In some areas, these choices can be polarizing and divisive. One person may be all into the Big Mac, while their partner likes the Whopper a lot.
The most polarizing battle, however, may be the choice between Coca-Cola and Pepsi.
Both companies have public claims of being better than the other, and each has restaurants and other partners such as theme parks, movie theaters, and arenas under exclusive contracts.
When a brand converts from Coke to Pepsi or vice versa, it’s going to upset some customers, and that’s what Costco has done with its food court. Warehouse Club has switched from PepsiCo brands to Coca-Cola products.
Since both Coke and Pepsi have fan bases, the switch may upset some customers.
I experienced a similar reaction last year when I switched cruise lines from Pepsi products to Coca-Cola while sailing on Carnival Celebration. After the list was exhausted, Coke fans searched for the remaining Coke products, while Pepsi drinkers searched for the last Mountain Dew and Pepsi, highlighting how emotionally charged soda loyalty can be.
Costco made the switch in late 2025 and completed swapping Pepsi products for Coca-Cola brands in early 2026.
It’s not something Costco has commented on widely, but CEO Ron Vakris addressed it during a question-and-answer session at the retailer’s annual meeting.
More retail:
“Yes, that’s right,” said Vakhris. “This summer, we will begin transitioning our food court fountain business to Coca-Cola.”
Costco had an exclusive deal with Pepsi since 2013.
“Costco switched to Pepsi in 2013 as a cost-saving measure, to keep the price of its famous hot dog and soda combo at $1.50. At the time, Pepsi was offering Walmart a better price deal that Costco couldn’t match. When Costco asked Coke to set the same price, Coco refused to set Coke the same price. Stores for an entire month,” Costco Insider reported.
