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Costco (COST+0.67%) is making a big change to its soda offerings.
After years of serving Pepsi (PEP+0.17%), the wholesale giant will switch to Coca-Cola (KO+0.96%) beverages later this year, according to CEO Ron Vachris.
“This summer, we will be converting our food court fountain business back over to Coca-Cola,” Vachris confirmed during the company’s annual shareholders meeting on Jan. 23.
Rumors of the change first surfaced on Reddit and Instagram in Dec. 2024, where users shared an alleged scoop from a “well-placed source.” Reactions were mixed — not surprising considering consumers’ sometimes polarized views around the two soft drink brands.
For the past 11 years, Costco’s food courts have offered a vareity of Pepsi-branded drinks, including Pepsi, Mountain Dew, and Starry. Under the new Coca-Cola partnership, options like classic Coke, Sprite, Fanta, and root beer will be available.
The change will affect all of Costco’s 800 locations worldwide, and while it’s significant, it’s not the first time Costco has stirred things up with its menu. In 2009, Costco traded Hebrew National (CAG+1.21%) hot dogs for its store-branded Kirkland Signature dogs.
Aside from the beverage shift, Costco has also been at the center of a widely-debated diversity, equity, and inclusion (DEI) discussion. The company, known for its strong stance on diversity programs, reaffirmed its commitment to its DEI initiatives during its recent shareholder meeting. In doing so, Costco overwhelmingly rejected a proposal from a conservative think tank calling for a reduction in these efforts.
Costco also made other notable changes in 2024. The company raised its Gold Star membership fee by $5, bringing it to $65, and introduced a crackdown on membership sharing, similar to a “Netflix-style” model to limit unauthorized use. On top of that, Costco had to issue several product recalls. In mid-November, it issued a butter recall due to missing allergy information. In early December, the retail giant said it was recalling 10,000 cases of its organic Kirkland Signature branded eggs due to a possible salmonella contamination.
In a related industry move, Subway announced last year it would switch from Coca-Cola to Pepsi, making it its exclusive U.S. beverage provider beginning Jan. 1, 2025.