Costco Wholesale Corporation (COST) has quietly made a beverage swap that will matter a lot to anyone who's ever grabbed a hot dog and soda after a warehouse shopping trip. After ten years with PepsiCo Inc. (PEP), the retailer is back to serving Coca-Cola Co. (KO) products at its food courts.

The changeover happened between late 2025 and early 2026. CEO Ron Vachris confirmed the switch during the company's annual meeting Q&A, though Costco hasn't exactly been chatty about why they made the move.

Here's the backstory: Costco originally switched to Pepsi back in 2013 as a cost-saving measure. The goal was to keep that famous $1.50 hot dog and soda combo at, well, $1.50. That price point has become almost sacred to Costco shoppers, so the Pepsi partnership made financial sense at the time.

So why switch back now? Costco hasn't officially said, but industry observers point to customer preference and Coca-Cola's apparent willingness to work more closely with the retailer. Turns out people really care about their soda brands. When Carnival Celebration cruise line switched from Pepsi to Coke mid-sailing last year, passengers literally scrambled to stockpile their preferred brand before it disappeared.

For what it's worth, Costco has been doing just fine overall. The company has outperformed the market by 7.13% on an annualized basis over the past 20 years, delivering average annual returns of 16.0%. Its current market capitalization stands at $426.19 billion.