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CANADIAN AIRLINES IN EXCLUSIVE DEAL WITH PEPSI

Canadian Airlines has teamed up with Pepsi-Cola Canada to make Pepsi beverages the only soft drinks served on the airline's flights worldwide. Under the three-year deal, which includes a two-year option to extend, Pepsi will supply Canadian with 250,000 cases of cans per year. Yesterday, Pepsi products began sporting the Canadian Airlines and Pepsi logos. A banner around both rims of the cans says, "The Choice of a New Elevation." The deal gives Pepsi an audience of about 13 million passengers a year. Canadian is also entering into an agreement to serve only Second Cup coffee on its flights.

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