Coca-Cola Initiates Legal Proceedings Against Vue Cinemas Following PepsiCo Partnership
Coca-Cola has launched a legal claim against Vue Entertainment, the prominent cinema chain, in a bid to recover alleged unpaid debts. This action comes several months after Vue ended its long-standing relationship with Coca-Cola and appointed arch-rival PepsiCo as its exclusive soft drink supplier across Europe.
End of a Quarter-Century Partnership
Vue, which operates more than 90 cinemas throughout the United Kingdom and Ireland, decided to put its soft drink contract out to tender last year. In March 2025, the cinema operator, recognised as the largest privately owned chain in Europe with 222 sites across eight countries, announced it had selected PepsiCo as its exclusive supplier. This new agreement is set to last until at least the year 2030, effectively concluding a partnership between Vue and Coca-Cola that had endured for almost twenty-five years.
Details of the Legal Dispute
On Thursday, Coca-Cola Europacific Partners Great Britain (CCEP) formally initiated legal proceedings against Vue Entertainment. The lawsuit aims to reclaim alleged unpaid debts that were reportedly outstanding at the time the previous contract was terminated. It is understood that Coca-Cola also has outstanding debts payable to Vue, although the cinema chain has not pursued any legal action regarding this amount.
The legal claim has been filed by Coltman Warner Cranston, a law firm based in Coventry that specialises in debt recovery. Darren Davoile, who leads the practice, informed the Guardian that the company does not comment on client activity or ongoing cases.
Reactions from the Cinema Chain
Tim Richards, the chief executive and founder of Vue, expressed disappointment over the situation. He stated, "One would have hoped that after 25 years, a simple phone call could have resolved a genuine dispute for such a small amount without the need for lawyers." This comment highlights the breakdown in communication between the two parties following the end of their commercial relationship.
Coca-Cola GB did not respond to a request for comment regarding the legal action or the specifics of the alleged debts.
PepsiCo's Expanding Portfolio in Cinemas
PepsiCo's portfolio, which now includes Vue cinemas, features popular brands such as Pepsi Max, Mountain Dew, Lifewtr, Bubly sparkling water, and Pure Leaf. This deal represents a significant victory for PepsiCo in the competitive soft drink market, particularly within the entertainment sector.
Notably, this is not the first time a major cinema chain has shifted allegiance from Coca-Cola to PepsiCo. In 2020, Vue's rival, Cineworld, also announced a deal to move away from Coca-Cola and utilise PepsiCo as its exclusive soft drink supplier, indicating a broader trend in the industry.
The legal dispute underscores the high stakes involved in supplier contracts within the food and drink industry, especially when long-term partnerships come to an abrupt end. As the case progresses, it may set precedents for how similar disputes are handled in the future between large corporations and their clients.
