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Atlanta
1:18 pm
Wed April 10, 2002
Delta and Coca-Cola expand relationship
Atlanta – Delta Air Lines Inc. and The Coca-Cola Co. have entered an eight-year strategic marketing and beverage agreement.
The agreement expands a 70-year relationship between the Atlanta companies by offering Delta customers many Coca-Cola beverages exclusively and by initiating cross-promotional marketing efforts between the airline and beverage giant internationally.
The deal is part of a larger marketing agreement between Coca-Cola (NYSE: KO) and SkyTeam, which includes several international airlines.
The SkyTeam-Coke partnership is supported by individual beverage agreements between SkyTeam's member airlines (Delta, Aeromexico, Air France, Alitalia, CSA Czech Airlines, and Korean Air) and their local Coca-Cola bottlers. To facilitate the agreement, officials said, Air France, the world's third largest international airline, switched to Coca-Cola as its primary carbonated soft drink beverage provider.
With the agreements, 220 million passengers a year will have access to Coca- Cola products on more than 8,200 daily SkyTeam flights. The initial five-year agreement, which can be renewed by SkyTeam at intervals until 2030, also could lead to cross-promotional marketing efforts between SkyTeam and Coca-Cola.
Coca-Cola and Delta (NYSE: DAL) will expand their marketing through airport and in-flight product sampling, in-store and vending contests and sweepstakes, third party partnerships and existing media channels, including delta.com and coca-cola.com.
Coca-Cola and Delta plan to unveil several customer-focused initiatives throughout the year, including programs that focus on bringing families together for the holiday season and transporting fans to top sporting events. Promotions may involve several beverage brands including Coca-Cola, Sprite and Dasani. Customers also will receive opportunities to earn miles in Delta's SkyMiles program.
The two companies will develop plans to jointly sponsor charitable organizations throughout the communities they serve as well.