Wimpy allies with Pepsi, snaps ties with Coke  ( September '21,2001, HBL)

BUSINESS or pleasure, food and drink obviously go together. Take Pepsi Foods, which has just announced its partnership arrangement with the Delhi-based food chain Wimpy International, adding to its alliances with restaurant chains. The Tricon International-owned Pizza Hut and KFC restaurants, the PVR-Anupam multiplexes and Rodeo are among the other prominent Delhi-based restaurants Pepsi has similar partnerships with.

Pepsi Foods' India-specific alliance with Wimpy's comes in the wake of the latter's partnership with Coca-Cola coming to an end. Reacting to the development, Coca-Cola's official spokesperson told Business Line, ``Our contract with Wimpy was for five years, which has just expired. The decision to terminate the contract and not to renew it was based on mutual discussions. The termination of the contract with Wimpy does not impact us.''

Meanwhile, Mr K.S. Sidhu, Chairman, Wimpy, said in an official statement, ``The official beverage switch from Coca-Cola to Pepsi marks Wimpy's renewed marketing and communication strategy, targeting teenage tastes and preferences.''

Apart from Pepsi Foods' beverages being served at all the 14 Wimpy outlets, the partnership between the two parties will also involve joint advertising and promotions. `Pepsi has hit Wimpy, when will you,' announces one such ad. ``Eateries contribute a substantial lot of volumes to beverage sales, especially in metros such as Delhi and Mumbai where eating out is very popular,'' said a Pepsi official.

Coca-Cola, on the other hand, has international alliances with McDonald's and Domino's Pizza, which extends to the Indian market as well. Coca-Cola also has a similar partnership with Nirula & Company in and around Delhi.

Amusement parks, cinema theatres, fine dining restaurants, shopping malls and traditional eateries are among the other out-of-shop retail channels that these beverage companies have been tapping. ``The concept is woven around the retail channel development, which is an on-going process,'' added the Pepsi official.

While Wimpy has 10 restaurants in and around Delhi, four are in Bangalore, Ludhiana, Jalandhar and Indore. The group plans to open two more restaurants shortly.