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Coke makes syrupy offer
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June 3, 1997: 8:33 a.m. ET
Coca-Cola gives incentives to McDonald's to drop Dr. Pepper/7 Up
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NEW YORK (CNNfn) - Coca-Cola Co. is launching an attack against Dr. Pepper/Seven Up. If the assault succeeds, the two sodas will be routed from thousands of McDonald's restaurants.
Under its new initiative, Coca-Cola is offering rewards, known as "syrup bonuses," to McDonald's franchises if they agree to sell only Coke brands, the industry trade journal Beverage Digest reported.
McDonald's franchises can receive anywhere from 200-600 gallons of free syrup, the concentrate used to make Coke products, depending on when they agree to begin selling Coke brands exclusively.
The rewards would be significant. According to Beverage Digest, a syrup bonus of 400 gallons would yield about 60,000 retail servings.
A Coca-Cola executive speaking to the magazine was unapologetic. "There is nothing unusual here. It's all about healthy competition that serves to benefit our customers and consumers."
Dr. Pepper/Seven Up Inc. said it would match Coca-Cola's incentive offers to McDonald's. It also explained it would "take all possible means to confront the issue," but has not yet determined whether it will mount legal action. 
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