The suit, filed in Manhattan federal court, alleges that Coca-Cola has used this practice to maintain its more than 90 per cent share of the fountain-dispensed soft drink market.

"Coca-Cola possesses the power to control prices in this market and ... the power to exclude competition," the suit alleges.

It charges that Coca-Cola's conduct amounts to "willful maintenance of its monopoly power" in the fountain-dispensed soft drink market.

Coca-Cola spokesman Rob Baskin dismissed the lawsuit as "without merit" after receiving a copy of it hours after the filing.

"It seems that Pepsi would prefer to compete in court rather than in the marketplace," Bill Hensel, Coca-Cola's manager of media relations, said. "We believe that all facets of the soft drink industry are highly competitiveespecially the fountain segment." Information provided by Beverage Digest said that in 1997 Coca-Cola had a 44 per cent share of the soft-drink market compared to Pepsi's 31 per cent share.

Food service distributors are independent companies that make consolidated deliveries of a broad variety of food and paper products to restaurant chains, movie theatre chains and other customers. These customers take delivery of all the supplies from one distributor at each of their locations.

The suit, which seeks unspecified damages, asks the court to stop Coca-Cola from soliciting or enforcing any agreements with independent food service distributors and others that prohibits them from carrying PepsiCo products.

It also asks that Coca-Cola be stopped from taking any action or threatening to take any action against food service distributors who carry PepsiCo fountain products. PepsiCo said that Coca-Cola's demands stand in "sharp contrast" to other suppliers who permit distributors to carry competing brands.