Marriott Extends Partnership With PepsiCo, Eyes Sales Growth - August 16, 2018
PepsiCo, which has been Marriott’s carbonated beverage provider since 1992, already has a reach to 4,000 properties in North America and more than 850 hotels, globally. After the extended agreement, PepsiCo will be providing beverages to more than 6,300 properties, including the additional 1,500 hotels and those joining the Marriott portfolio during the term of the agreement. How Will Marriott Gain From Extended Partnership? Marriott’s customers will also have access to all PepsiCo beverage offerings, such as Pepsi, Aquafina, LIFEWTR, Mountain Dew, bubbly, ready-to-drink coffee from Starbucks SBUX, Tropicana, Lipton Iced Tea and Gatorade. We believe that such a partnership will help Marriott to witness revenue growth in the future. For 2019, the Zacks Consensus Estimate predicts sales growth of 4.6% year over year. For the current year, the company expects comparable system-wide revenue per available room (RevPAR) to increase 2-3% in North America, 5-6% outside North America and 3-4% worldwide on a constant-dollar basis.