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Coca Cola has launched legal proceedings against Vue Entertainment after the cinema chain ended its long standing supply relationship with the soft drinks giant and moved to rival PepsiCo. The dispute follows Vue’s decision to change its exclusive soft drinks supplier across Europe, bringing to a close a commercial partnership that had lasted for almost twenty five years.
Vue operates more than ninety cinemas across the United Kingdom and Ireland and is the largest privately owned cinema operator in Europe. In total, the company runs two hundred and twenty two sites across eight countries. Last year, Vue placed its soft drinks contract out to tender as part of a routine review of suppliers. In March, the company confirmed that PepsiCo had been selected as its new exclusive supplier, with the agreement expected to run until at least the year two thousand and thirty.
The decision marked a significant shift in the cinema industry, where Coca Cola has traditionally held a strong presence. PepsiCo’s portfolio includes well known brands such as Pepsi Max, Mountain Dew, Lifewtr, Bubly sparkling water and Pure Leaf, all of which are now available at Vue cinemas under the new arrangement.
Several months after the contract ended, Coca Cola Europacific Partners Great Britain, known as CCEP, initiated legal action against Vue Entertainment. The claim relates to alleged unpaid debts that Coca Cola says were outstanding at the time the supply agreement was terminated. The legal action was filed on Thursday through Coltman Warner Cranston, a Coventry based law firm that specialises in debt recovery. Darren Davoile, who leads the firm’s practice, said the company does not comment on client activity.
It is understood that the financial dispute was not one sided. Coca Cola is also believed to owe Vue money, although Vue did not pursue legal action in relation to that amount. Tim Richards, the founder and chief executive of Vue, expressed disappointment at how the matter was handled. He said that after twenty five years of working together, the issue could have been resolved through a simple phone call rather than legal proceedings, particularly given the relatively small sum involved.
Coca Cola Great Britain did not respond to a request for comment. Vue, however, later confirmed that the disagreement over outstanding balances on both sides had now been resolved. Richards stated that the petition for winding up had been withdrawn and should never have been filed. He added that there is currently no amount outstanding and that the disputed figure was for under one hundred thousand pounds.
The case highlights the commercial tensions that can arise when long term business relationships come to an end, especially in competitive markets such as food and beverage supply. It also reflects a broader trend within the cinema industry. Vue’s rival Cineworld announced in two thousand and twenty that it would also move away from Coca Cola and adopt PepsiCo as its exclusive soft drinks supplier.
Despite the brief legal dispute, Vue has indicated that the matter is now closed, allowing both companies to move forward after the end of a partnership that spanned more than two decades.
