Coca-Cola and Burger King join forces in Holland

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BRUSSELS -- Coca-Cola has signed a five year joint marketing deal with fast food chain Burger King in Holland to help build the franchise of one of its biggest worldwide customers.

Burger King's Dutch franchise holder Transautex Food will co-ordinate all poster campaigns featuring the Coke brand. Point of sale material will be designed by both companies.

Burger King is a small player in the Dutch fast food market with just 12 restaurants, compared to 136 McDonald's outlets in the country. However, the joint marketing deal is intended to boost this and help improve Burger King's image, says Transautex Food General Manager Hans Wasmoeth. Burger King plans its expansion in the western half of Holland only.

For Coke, the tie-up will "make Burger King a bigger client for us and thereby expand our sales in the long run," says external affairs director Frans Boekes.

The deal will not affect Coke's relationship with McDonald's - its biggest single client in Holland. Coke and McDonald's already join forces on numerous promotional campaigns, including the McDonald's Children's Fund which is currently running.

McDonald's is unperturbed by its main drinks supplier sleeping with the enemy. "Its their business," says a spokeswoman. The chain plans to grow to over 200 outlets in the next two years. "This deal (between Coke and Burger King) will have no impact whatsoever on our expansion," she adds.

Copyright August 1996 Crain Communications Inc.

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