This research aimed to use the collaborative communication aspects of information sharing, incentive alignment, and decision synchronization to explain physical distribution service quality in the soft drink demand chain. The research was prompted by a desire to learn more about a topic that has received little attention in Greece while also contributing information about the variables that influence the performance of soft drink distribution networks. Manufacturers in Greece provided the data. The aspects of collaborative communication were significant determinants of the physical distribution service quality. Physical distribution service quality was shown to be significantly predicted by incentive alignment and information sharing, but not by decision synchronization. This research shows that collaborative communication aspects such as information sharing, decision synchronization, and incentive alignment enhance physical distribution service quality in soft drink demand chains. The research used a primary sample of 200 study participants from different drink manufacturing plants around Greece. In our research, we focused on vertical cooperation between manufacturers and distributors and its effect on physical distribution service quality. This is a relatively unexplored topic in the developing world. According to the scholars cited in the literature review, information exchange, incentive alignment, and decision synchronization improve physical distribution service quality in demand chains.