U.S. Judge Dismisses PepsiCo’s Antitrust Suit Against Coca-Cola

Coca-Cola Co. has won the latest round in the cola wars, persuading a federal judge to dismiss an antitrust suit brought by archrival PepsiCo Inc.

“PepsiCo’s brew falls flat,” U.S. District Judge Loretta Preska said in a decision Tuesday dismissing a complaint by PepsiCo, the No. 2 soft drink maker.

The case focused on so-called independent food service distributors, which supply restaurant chains and other food service outlets with fountain soda syrup.

PepsiCo had accused its rival of violating federal antitrust laws by barring its independent distributors from also selling Pepsi.

In dismissing the complaint, Preska said Purchase, N.Y.-based PepsiCo had failed to allege enough facts to support its antitrust claims.

In particular, the judge said that PepsiCo could get its product to restaurant chains and other outlets by using different intermediaries, such as bottlers. Bottlers provide fountain soda syrup to soft drink outlets, but not other supplies that independent distributors also sell as part of their “one-stop shopping” service.

Coca-Cola Enterprises Inc. is the world’s largest bottler of Coke beverages, and Pepsi Bottling Group Inc. is the world’s largest Pepsi bottler.

Polly Howes, a spokeswoman for Coca-Cola, said the judge’s decision “clearly reaffirms that competition is alive and thriving in the fountain beverage business.”

“We obviously disagree,” said Larry Jabbonsky, a spokesman for PepsiCo. “We intend to reflect on it carefully before making any decisions about possible next steps.”

In New York Stock Exchange trading, Shares of Atlanta-based Coca-Cola fell 25 cents to close at $52.88, and PepsiCo shares dipped 13 cents to close at $43.88.