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Coca-Cola has lost a key court case.
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The company will lose access to the number-two selling soda brand in some markets.
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Some fans will be disappointed at the brand that takes the key spot.
While Coke and Pepsi have battled for cola supremacy, other parts of the soda wars have been less of a two-brand race.
Sprite, for example, has always been the clear leader in the lemon-lime soda space. PepsiCo has tried various brands, but they’re a distant number two, much as R.C. Cola is technically third in the cola space, but is not really even playing the same game as Coke and Pepsi.
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1959: Pepsi launches Teem, its first lemon-lime soda to rival Sprite.
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1984:Teem is discontinued in the U.S.
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1984:Slice debuts. That was a fruit-flavored soda line (including lemon-lime) positioned against Sprite and 7-Up.
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1984-2000s:Slice expands to multiple flavors, then fades as Pepsi shifts focus to Sierra Mist.
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1999:Sierra Mist launches nationally as Pepsi’s new clear-soda flagship.
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2010-2016: Multiple rebrands including “Sierra Mist Natural,” “Mist Twst,” and thenback to “Sierra Mist” all fail to gain traction.
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2023: Pepsi drops Sierra Mist and launches Starry, aimed at Gen Z with a crisper flavor and modern branding.
Source: KSBW
Sprite has been the clear lemon-lime leader in the same way that Keurig Dr Pepper’s Dr. Pepper has dominated the market for whatever its flavor is supposed to be. Coca-Cola’s rival to Dr. Pepper, Mr. Pibb, has not caught on as a clear alternative.
That’s going to hurt Coca-Cola, or at least some fans of Dr. Pepper, as Keurig Dr Pepper now has the right to pull its product from Coca-Cola’s supply chain.
A Texas court order went into effect on Oct. 27 that officially ends Dr Pepper’s long-running distribution agreement with Reyes Coca-Cola Bottling, which supplies Coke products to parts of California and Nevada, according to Bloomberg.
“That ruling gives Dr Pepper’s parent company, Keurig Dr Pepper, full control to bring its soda back under its own distribution system.
This means that some Coca Cola-controlled venues and restaurants will lose access to the world’s second-most-popular soda, Dr. Pepper.
“That legal shift may sound technical, but here’s the short version: In areas where Coke bottlers handled Dr Pepper, some Coke-affiliated fountains could lose access to Dr Pepper syrup on Monday [Oct. 27]. When that happens, restaurants and theaters often swap in Mr. Pibb, Coca-Cola’s “intensely flavored, refreshing, spicy cherry alternative,” Parade.com reported.
More Retail:
RCCB, the Coca-Cola bottler impacted by the ruling, may appeal the case.
“We are disappointed in the court’s ruling and respectfully disagree with the decision. We believe the facts and the law support a different outcome,” an RCCB spokesperson said in a statement sent to Just Drinks.
Dr. Pepper is the United States’ number-two soda brand.Keurig Dr Pepper
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1985: Pepsi had been holding the #2 spot behind Coca‑Cola for decades.
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2018: Dr. Pepper ramps up major marketing campaigns such as “Fansville,” improving visibility and brand strength, especially among younger consumers.
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2023: According to market-data from Beverage Digest, Dr Pepper slightly surpasses Pepsi in carbonated soft drink sales volume (≈ 8.34% vs. 8.31%), moving into the #2 ranking behind Coca-Cola.
Source: The Guardian -
Early 2024: Media reports confirm Dr. Pepper has tied with Pepsi for #2; both brands hold around 8.3% market share.
Source: MySA -
Mid-2024: Dr. Pepper is officially reported to have overtaken Pepsi as the second-most-popular soda by sales volume.
Source: Marketing Dive
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Parties Involved:
Plaintiff: Reyes Coca-Cola Bottling (RCCB) Defendant: Keurig Dr Pepper Inc. (KDP) Link to court case -
Legal Issue:
RCCB alleged that KDP unlawfully terminated their franchise agreement without proper grounds, despite RCCB’s substantial investments and compliance with the agreement. Source: Trellis Law -
Court’s Ruling:
A Collin County district court judge issued a summary judgment in favor of KDP, allowing it to end the distribution and bottling partnership with RCCB in California and Nevada. The termination was deemed effective as of October 27, 2025. Source: The Texas Lawbook -
Implications:
This ruling permits KDP to take over direct store delivery of its brands in the affected regions, marking a significant shift in its distribution strategy. Source: Bloomberg Law
Related: 159-year-old whiskey brand facing Chapter 11 bankruptcy, asset sale
This story was originally reported by TheStreet on Oct 27, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.
