Coca-Cola Launches Legal Action Against Vue Cinemas Following Pepsi Switch

Coca-Cola Europacific Partners (CCEP) has initiated legal proceedings against Vue Cinemas, alleging unpaid debts following the cinema chain's decision to switch its primary soft drinks supplier to PepsiCo.

The dispute emerges nearly a year after Vue ended a 25-year partnership with Coca-Cola, opting instead for a new exclusive supply deal with rival PepsiCo that began in March 2025.

The Legal Dispute

According to reports first published by The Guardian, the bottling giant filed a "winding-up petition" against Vue Entertainment. The legal action sought to reclaim alleged debts that were outstanding at the time the contract was terminated.

Vue’s founder and Chief Executive, Tim Richards, has confirmed the existence of the dispute but stated that the petition has since been withdrawn. He revealed that the disputed amount was relatively minor in the context of corporate contracts, totaling less than £100,000.

In a statement addressing the lawsuit, Richards expressed disappointment at the approach taken by the cinema's former partner.

"One would have hoped that after 25 years, a simple phone call to me could have resolved a genuine dispute for such a small amount without the need for lawyers," Richards said.

He further clarified the current status of the financial disagreement: "The petition for winding up has been withdrawn and should never have been filed. There is currently no amount outstanding."

It is understood that there were also outstanding debts payable by Coca-Cola to Vue, though the cinema chain did not pursue legal action to recover them.

A Major Industry Shift

The friction between the two companies follows a significant commercial shift in the European cinema market. In early 2025, Vue put its soft drinks contract up for tender, ultimately selecting PepsiCo as its exclusive supplier for its 220+ sites across Europe.

The new agreement, which runs until at least 2030, replaced Coca-Cola products with Pepsi's portfolio, including Pepsi MAX, 7UP, and Tango.

This move mirrors a wider trend in the UK cinema industry; rival chain Cineworld also ended its relationship with Coca-Cola in favor of PepsiCo in recent years.

Current Status

While the filing of a winding-up petition is a severe legal maneuver—often used by creditors to force a company into compulsory liquidation if debts remain unpaid—Vue has assured that the matter is now resolved.

Coca-Cola Europacific Partners has declined to comment on specific client activity.

Source: This report includes details originally revealed by The Guardian.