Glendale-based DineEquity Inc., parent company of Applebee’s and IHOP restaurant chains, announced today an exclusive 10-year agreement with PepsiCo. Inc.
Under the terms, the beverage company will serve as the exclusive non-alcoholic beverage provider for most soft-drink categories in 1,800 Applebee’s and 1,500 IHOP restaurants.
As part of the agreement, Applebee's and IHOP customers will be served a variety of PepsiCo beverages, including Pepsi, Diet Pepsi, Mountain Dew, Sierra Mist, Mug Root Beer and Tropicana lemonade.
While Applebee’s eateries have partnered with PepsiCo for some nine years, the partnership marks the first time that PepsiCo beverages will be served exclusively in the company’s restaurants. The agreement changes a previous supplier arrangement which has spanned decades, company officials said.
"The agreement with PepsiCo illustrates our ongoing efforts to fully leverage DineEquity's scale to the ultimate benefit of our brands, franchisees and guests," said Julia Stewart, chairman and CEO of DineEquity. "By consolidating our business with PepsiCo, we achieved more advantageous terms for our franchisees than ever before, while securing the widest variety of beverage options for our guests.