GLENDALE, Calif., April 30, 2012 /PRNewswire/ -- DineEquity, Inc. (NYSE: DIN), the parent company of Applebee's Neighborhood Grill & Bar and IHOP Restaurants, today announced it has signed a 10-year contract with PepsiCo, Inc. (NYSE: PEP) to be the exclusive non-alcoholic beverage provider in the majority of soft-drink categories for its more than 1,800 Applebee's and 1,500 IHOP restaurants throughout the U.S.
The partnership with DineEquity, one of the largest full-service restaurant companies in the U.S., provides Applebee's and IHOP guests with a wide array of PepsiCo beverages. The new agreement marks the first time in IHOP's 53-year history that PepsiCo beverages will be served exclusively in the chain's restaurants and changes a previous supplier arrangement spanning decades. Restaurant conversions will be completed by July. Applebee's has been in partnership with PepsiCo since 2003.
"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. We have enjoyed the strong partnership with PepsiCo at Applebee's and now look forward to a similarly successful relationship encompassing IHOP."
"As one of the country's largest full-service restaurant operations, DineEquity has been a great strategic partner with like-minded commitments to innovation, brand building and marketing," said Indra Nooyi, chairman and CEO of PepsiCo. "Applebee's has been a valued, long-standing customer of ours and we're looking forward to growing our relationship with IHOP. We appreciate the opportunity to serve our great-tasting, top-quality beverages to all DineEquity guests."As part of this agreement, Applebee's and IHOP patrons will now be able to enjoy a variety of PepsiCo beverages with their meals, including Pepsi, Diet Pepsi, Mountain Dew, Sierra Mist, Mug Root Beer and Tropicana lemonade. Many Applebee's and IHOP restaurants already offer PepsiCo's Tropicana Pure Premium orange juice and Quaker oatmeal and grits.
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