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(Reuters) - PepsiCo <PEP.N> is set to replace Coca-Cola <KO.N> as the beverage supplier to restaurant chain Buffalo Wild Wings <BWLD.O>, the New York Times reported on Wednesday.
The deal, which will begin with the introduction of Pepsi, Mountain Dew and other drink brands in the new year, is the biggest sign so far of how PepsiCo is deploying its thriving snacks business to offset declines in its traditional soda business, the Times said.
PepsiCo has managed to weather bumps in the soda market due to its wide array of snacks and beverages, which include Frito-Lay chips and Tropicana juices.
PepsiCo declined to release the value of the deal, the newspaper said, adding that details on how to combine the varied products of the two companies are still in the discussion stages. (http://r.reuters.com/nyf45v)
Buffalo Wild Wings operates more than 950 sports bars and grills in the United States and Canada.
The deal, expected to be announced on Thursday, will also allow Buffalo Wild Wings to capitalize on PepsiCo's relationships with major sports organizations like the National Football League and Major League Baseball, the Times said.
PepsiCo, Coca-Cola and Buffalo Wild Wings could not be reached for comment by Reuters outside of regular U.S. business hours.
(Reporting by Chris Peters in Bangalore; Editing by Supriya Kurane)