Costco Wholesale Corporation (NASDAQ:COST) has ended its decade-long relationship with PepsiCo Inc. (NASDAQ:PEP), returning its food courts to products from Coca-Cola Co. (NYSE:KO).
The transition began in late 2025 and was completed in early 2026. Costco has not provided extensive commentary on the change, but CEO Ron Vachris confirmed the switch back to Coca-Cola during the Q&A session of the company’s annual meeting.
Costco had been exclusively partnered with Pepsi since 2013. The initial switch to Pepsi was a cost-saving measure aimed at maintaining the price of Costco’s popular hot dog and soda combo at $1.50, as reported by Costco Insider, reports The Street.
The reasons for the recent switch back to Coca-Cola have not been officially disclosed. However, Costco Insider suggests that customer preference and Coca-Cola’s renewed commitment to quality and partnership with Costco likely drove the decision.
The choice of soda brand is a contentious issue among customers, with many having strong brand loyalties.
This was evident when Carnival Celebration, a cruise line, switched from Pepsi to Coca-Cola mid-sailing last year, causing a scramble among passengers for remaining stock of their preferred brand.
Costco has outperformed the market over the past 20 years by 7.13% on an annualized basis producing an average annual return of 16.0%. Currently, Costco Wholesale has a market capitalization of $426.19 billion.
Shutterstock/PJ McDonnell
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